Shipping Terms Glossary

Shipping Terms Glossary
Certificate of Origin (CoO)

Certificate of Origin (CoO)

Having a CoO may save you money on duties in case there are any trade agreements between the importing and exporting countries.

What is a Certificate of Origin (CoO)?

Just like the name implies, it's a certificate that declares where the export shipment was manufactured.

Here's an example of a Certificate of Origin:

Bookairfreight -Certificate-of-Origin-example

Why do you need a Certificate of Origin (CoO)?

To determine if the goods are legal to be imported, and to check for any taxes or duties that may be applicable.

When should you submit your Certificate of Origin (CoO)?

Some countries’ Customs require a CoO along with the packing list and commercial invoice for customs clearance.

Freight forwarders may also ask you to provide it along with the Letter of Credit (a letter from a bank guaranteeing the payment of the goods on behalf of the shipper).

What are the benefits of having a Certificate of Origin (CoO)?

1. Tax Deduction . It saves you money on duties in case there are any trade agreements between the importing and the exporting countries.

2 . It Provides Protection . CoO can act as a proof in case of any Customs audits.

Simple Scenario Time:

For example: The North American Free Trade Agreement (NAFTA) between the US, Canada, and Mexico ensures that all trading between the 3 countries is duty free.

So if a US buyer is importing goods from Mexico, by showing the CoO to the US Customs, they no longer need to pay any taxes for that shipment.

Daisy Jiang

Proud Co-Founder and CEO of Bookairfreight. Shortly after starting to work in the world of logistics, I was astonished at how difficult and time consuming it was for businesses to get their hands on a simple air freight quote. I saw this as an opportunity to really make a difference in people’s lives, and felt like I had to do something. It was the spark that lit the fire of Bookairfreight’s creation.

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