Certificates of Origin can generate big savings

Certificates of Origin (COO) are issued by the suppliers and authenticated by bodies such as a Chambers of Commerce. The Certificates confirm that the goods listed on the certificate originate in that area. Origin, in turn, is determined by a number of factors based on the materials and labour used as well as the manufacturing processes. Generally these certificates are required where the rate of duty is determined by the country of origin and this rate is lower than the general rate of duty, for example in preferential trade agreements. They are also required where goods may be subject to anti-dumping, countervailing or safeguard measures. Another example is the current International Trade Administration Commission (Itac) China quota system which obliges the importer to provide a COO. In the latter case, a COO will determine whether or not the quotas apply to the goods in question as well as to the tariff application classification. The issue of origin is particularly pertinent because SA has signed reciprocal preferential trade agreements with, for example, the EU, SADC and US under Agoa (African Growth and Opportunities Act). This means that for goods originating in SA, exported under these agreements, the importer in those countries can pay a lower rate of duty on the goods. The converse is also true – for example, ethyl alcohol imported from Zimbabwe, when accompanied by an SADC Certificate of Origin, will not pay any Customs duty in terms of Schedule 1 Part 1. The prescribed Customs and Excise document used as a Certificate of Origin is the DA 59. By obtaining COOs, both importers and exporters can save themselves and their clients a fair sum of money.