Issue 333, March 7, 2002
In today's international trade environment, the Certificate of Origin document is growing in popularity and significance. Whether you are 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 (NAFTA, GSP, CBTPA, AGOA, Subh. 9801 and 9802, etc.), the Certificate of Origin is the document of choice for establishing and maintaining eligibility, admissibility and origin labeling. One invalid certificate of origin can literally nullify your special claims and result in increased duties and substantial penalties. Moreover, a faulty certificate of origin can even result in possible civil liabilities if used by other parties to support their claims. A successful import compliance program should include comprehensive Certificate of Origin management. A key part of that program should require at least annual Certificate of Origin updates.

Generally speaking there are two types of Certificates of Origin:

1) Company-Prepared Certificates of Origin: To insure that these certificates are properly prepared and fully valid, it is important for the company to:

Fully understand the reason for the certificate of origin
Understand how the certificate will be used
Know and understand the applicable rule of origin
Ensure that Certificates are prepared and signed by knowledgeable individuals
Have sufficient backup material and documents to support claim

2) Vendor/Supplier Prepared Certificates of Origin: To insure that these certificates are properly prepared and fully valid, it is important for the requesting company to:

Never assume that the vendor/supplier understands the applicable rule of origin or how the certificate of origin will be used. For example, most of us would be surprised if a domestic producer with no import/export experience full understood the NAFTA Rules of Origin.

Educate the vendor in simple easy to understand language on the rule of origin, how the certificate will be used and how the requesting company plans to rely. This information can be incorporated into the certificate requesting that a cover letter or special language be placed into the certificate itself.

Ensure that the person signing the certificate has actual knowledge and the authority to bind the company to the statement. Avoid Certificates of Origin signed by clerks or salesmen.

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

Our contributing writer, Steven B. Zisser, is an attorney/international trade management specialist in the San Diego border community of Otay Mesa, where he specializes in U.S. Customs and International Trade. He can be reached via steve@zissergroup.com email or at (619) 671-0376. .

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