Issue 290, January 31, 2001
In today's international trade environment, the Certificate of Origin document is growing in popularity and significance. Whether you're importing into the United States, or shipping goods throughout the world, the Certificate of Origin is fast becoming one of the most important documents in your import package. With the expansion of international trade agreements and preferential trade programs, the Certificate of Origin is the document of choice for establishing eligibility, admissibility and origin labeling.

The Certificate of Origin has evolved from a basic manufacturer's affidavit to the sophisticated Certificate of Origin document required under the new U.S.-Caribbean Basin Trade Partnership Act (CBTPA) and the African Growth and Opportunity Act (AGOA).

Certificates of Origin are not only limited to the finished product, but also to the multitude of components used to produce that product. For example, under the North American Free Trade Agreement, the NAFTA Certificate of Origin is used to support NAFTA originating status for the finished product. However, as backup and support for that certificate, companies must often collect and maintain numerous certificates of origin supporting each originating component on the Bill of Material (BOM).

Because the origin and eligibility rules are different with each trade agreement or preferential trade program, companies must establish certain strategies for managing and maintaining their Certificates of Origin:

For each selling destination, identify all available preferential rules and programs and the required certificate of origin format.
All bills of materials should include columns covering origin, vendor(s) and FOB value.
To support and properly populate the origin column, all company purchase orders should include special language requiring origin certification directly on the seller's invoice for all products purchased.
Identify those components and raw materials which are sourced from multiple vendors and multiple origins.
Origin Certifications must be updated at least once per year.

Certificate of Origin management is vital to successful and cost-effective importing.

Our contributing writer, Steven B. Zisser, is an attorney in the San Diego border community of Otay Mesa, California where he specializes in the practice of U.S. Customs and International Trade Law. He can be reached via email or at (619) 671-0376.

Please note that due to the complex nature of the subject matter, Danzas AEI cannot be responsible for actions taken by the reader in reliance on the information contained herein without prior consultation with Danzas AEI.