In global trade, it is absolutely vital to have strong organisational skills and to be fully compliant if you want to successfully export goods. Obtaining a Certificate of Origin (CO) in South Africa is a crucial aspect of this process, as it serves as a certification document attesting to the South African origin of the exported goods. The Certificate of Origin (CO) in South Africa is not just a bureaucratic formality; it plays a crucial role in the determination of customs duties and the application of preferential trade agreements between countries. Obtaining a Certificate of Origin (CO) in South Africa can result in the reduction or avoidance of custom duties and other penalties.
For South African businesses to thrive in global markets, it is essential that they understand the importance of the Certificate of Origin (CO) and how to leverage its potential to overcome market challenges. This blog delves into the significance of a Certificate of Origin in South Africa for exports, the types of certificate options available, their legalisation, and the tangible benefits for business owners in South Africa.
Significance of the Certificate of Origin in South Africa
A Certificate of Origin, also known as a COO, is an authoritative document prepared by the exporter. It proves that the goods being exported were produced, manufactured or processed in South Africa. The certificate of origin is issued by designated authorities, such as chambers of commerce or customs agencies. This certification serves a number of purposes, including providing customs authorities with accurate information regarding the origin of the goods, determining applicable tariffs, and ensuring compliance with trade agreements.
Types of Certificates of Origin
There are three types of COs:
- Non-preferential Certificate of Origin
A non-preferential certificate of origin (CO), also known as an ordinary certificate of origin (CO), is a trade document that helps to identify the origin of goods. It does not allow your overseas buyers to claim preferential tariff treatment for your products (i.e. pay lower or no duty) when importing them, as it is not issued under a free trade agreement. This particular certificate of origin is the most common type and is issued by local chambers of commerce in South Africa.
- Preferential Certificate of Origin
A preferential certificate of origin (CO) is an official document that proves a goods’ eligibility for preferential tariffs under a bilateral or multilateral trade agreement. It also specifies any additional exemptions that may be applicable. The South African Customs Authority issues preferential certificates of origin.
For instance, the Southern African Development Community (SADC) Free Trade Agreement (FTA) between 16 SADC Member States, including South Africa, has permitted tariffs as low as 85% on specific exports. The European Union has also implemented its Generalised System of Preferences (GSP) to support emerging economies through trade. Consequently, the SADC-EU Economic Partnership Agreement (EPA) offers full or partial removal of customs duties on 98.7% of South African imports to the EU.
When Do You Need A Certificate of Origin in South Africa?
A Certificate of Origin should be provided for almost every export shipment. Many companies apply different tariff rates to goods from different countries. A Certificate of Origin serves to verify the provenance of goods from the declared country, thereby confirming their eligibility for any applicable tariff reductions. Therefore, including a Certificate of Origin with shipments ensures buyers receive the agreed-upon discounted tariff rates, regardless of their location, be it Africa, the UAE, the EU, the US, or elsewhere.
The Certificate of Origin plays a pivotal role in customs clearance, making it a vital component of global trade operations. This document is used by customs officials to verify the declared origin of goods. The absence of a valid certificate of origin (COO) can result in delays in the customs clearance process and potential disruptions to supply chains. By issuing your buyers with a Certificate of Origin, you can streamline the process and ensure their products are processed swiftly. This approach establishes you as the preferred exporter, enhancing your competitive edge in global trade.
Legalisation of Certificate of Origin in South Africa
The legalisation of certificates of origin (COOs) is often a prerequisite for their legal acceptance in a foreign country. When sending COOs to certain countries, such as Kuwait, Qatar, Saudi Arabia, the United Arab Emirates, Oman, Israel, the United Kingdom, and Singapore, or whenever a consignee requests it, it is often necessary to legalise the COOs in South Africa. By legalising your Certificate of Origin in South Africa, you are confirming the authenticity and integrity of the information contained within the document. This provides importers’ confidence in the document’s authenticity, thereby facilitating seamless trade.
Depending on the destination country, the certificate of origin (COO) can be legalised by embassy authentication or by the Department of International Relations and Cooperation (DIRCO) apostille. The latter certifies the authenticity of the signature, seal and position of the official who has executed, issued or certified the COO. Legalising a certificate of origin in South Africa enables the document issued in South Africa to be recognised as valid in another country. It is important to note that the rules and regulations surrounding CO legalisation can vary between countries, so it is crucial to check what is required before embarking on the process.
FAQs
- What is a Certificate of Origin?
A Certificate of Origin (CO), is an international trade document attesting to the origin of specified goods. It is often required by the customs authorities of a country as part of the entry process and is used in international trade to comply with customs requirements and trade agreements.
- Why is a Certificate of Origin important in international trade?
A Certificate of Origin is important because it determines the origin of a product, which can impact customs duties, tariffs, and access to preferential trade agreements. It also instills confidence in consumers regarding the authenticity and quality of a product.
- What are the types of Certificate of Origin?
There are two main types: Non-Preferential Certificate of Origin, used for standard trade, and Preferential Certificate of Origin, issued under trade agreements to access reduced or zero tariffs.
- How long is a Certificate of Origin valid for?
A Certificate of Origin is valid for 12 months from the date of issuance and must be submitted to the appropriate customs body within its period of validity. After the validity period elapses, it will only be accepted under exceptional and justified circumstances
- How can a business obtain a Certificate of Origin?
A South African business entity or exporter will obtain a Certificate of Origin from the Chamber of Commerce or an institution of a similar nature that is responsible for the export of goods and services from one country to another.
- How to legalise a Certificate of Origin (CO) in South Africa ?
Depending on the destination country, the certificate of origin (COO) can be legalised by embassy authentication or by the Department of International Relations and Cooperation (DIRCO) apostille
- What are some common mistakes in Certificate of Origin compliance?
Common mistakes include providing inaccurate information, using the wrong certificate type, improper documentation, late submission, and non-compliance with trade agreements, and non-legalisation before submission.
Global Apostille, your document legalisation partner
With over 10 years of expertise in document legislation in South Africa, Global Apostille is your ideal partner for navigating the regulatory landscapes of international markets. Our approach is tailored to meet the unique needs of each client, ensuring a smooth and efficient process to obtain Apostille Certificates. Here’s why you should choose us to assist you:
- Expert guidance: Our regulatory experts provide in-depth insight and support throughout the process.
- Streamlined processes: We handle all aspects of the certification process, making it straightforward and hassle-free.
Tel: 012 348 3134;
Mobile: 081 347 6060;
Email: info@apostillelegalisation.co.za.
www.apostillelegalisation.co.za
