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Certificate of Origin
What is a Certificate of Origin?
A Certification of Origin is a set of comprehensive rules of origin is generally comprised of origin criteria to determine the country of origin / originating status of a product and also procedural requirements to support a claim that the product satisfies the applicable origin criteria. Certification of origin constitutes the primary part of such procedural requirements.
On the other hand, currently there are no clear and effective international standards on the definition of a proof of origin and related procedures. The WTO Agreement on Rules of Origin is silent on procedural aspects. Even though the Revised Kyoto Convention provides certain definitions in Chapter 2 of Specific Annex K which refers to “Documentary evidence of origin”, the provisions do not recognize the increase of free trade agreements (FTAs) in the recent decades and the various concepts of procedural requirements included in these agreements. In the case of preferential trade, FTAs or legislations on Generalized System of Preferences (GSP) set out the respective procedural requirements.
Who needs a proof of origin?
First and foremost, the Customs in the importing country may require a proof of origin in order to determine whether or not to apply certain trade measures at the border. If there are any trade measures applicable for export, then the Customs in the exporting country would need it as well.
Secondly, the importer may need a proof of origin. In relation with the Customs in the importing country, the importer bears the responsibility to provide what the Customs requires for the appropriate processing of imports. Thus, if a proof of origin is required by the Customs authority of the importing country for a claim of preferential tariff treatment or for a non-preferential origin purpose, the importer needs a proof of origin.
Thirdly, the exporter may need a proof of origin to provide it to the importer who will submit it to the Customs authority of the importing country, when requested by that authority. The exporter may also need a proof of origin if the Customs authority in the exporting country requires it.
Source: Guidelines on Certificate of Origin – World Customs Organisation
Where to Apply for Certificates of Origin?
A company wishing to export goods manufactured in Nepal to India or to the Third Countries for the first time has to register the company/enterprises/industry online application for issuance for Certificate of Origin at Nepal National Single Window (www.nnsw.gov.np) and then approach at one of the following organizations:
- Trade and Export Promotion Centre, TEPC (www.tepc.gov.np)
- Federation of Nepalese Chamber of Commerce and Industries, FNCCI (www.fncci.org)
- Confederation of Nepalese Industries, CNI (https://cni.org.np)
- Nepal Chamber of Commerce, NCC (www.ncc.org.np)
Procedure to receive Certification of Origin (CO) for Third Country
1. A company wishing to receive Certificate of Origin can apply online application form in one of the organizations mentioned above.
2. The application form is to be submitted with the following documents:
a. Company or Firm Registration Certificate
b. Tax Registration Certificate
c. VAT/PAN Registration Certificate
d. License and permits (if required) for export of specific goods
e. Mode of Payment
f. Commercial Invoice
3. The application is reviewed by Technical Committee in Department of Industry, Tripureshwor, Kathmandu and will decide on the issuance of the Certificate of Origin if the application and the supporting documents are in order.
4. The applicant is required to pay 0.09 percent of total amount in the Commercial Invoice. The payment should be made in Nepalese currency.
5. Upon receiving the payment, a Certificate of Origin will be issued.
Procedure to receive Certification of Origin (CO) for India
1. The following documents are to be submitted with the application
a. Cost Sheet
b. Company or Firm Registration Certificate
c. Tax Registration Certificate
d. VAT/PAN Registration Certificate
e. License and permits (if required) for export of specific goods
2. The technical committee at Department of Industry, Tripushwor, Kathmandu will review the application and make field visits factories to learn about the applicants’ factory’s production capacity, labour capacity, etc.
3. The technical committee reviews the application with a report developed after the field visits. If the information provided by the company seems matches the production capacity, the technical committee will approve the application and provide recommendation for a Certification of Origin.
4 The firm is then required to fill an application form and apply for Certificate of Origin with the following documents
a. Company or Firm Registration Certificate
b. Tax Registration Certificate
c. VAT/PAN Registration Certificate
d. License and permits (if required) for export of specific goods
e. Commercial Invoice
6. The Form-A will be accepted if the information entered is correct.
7. If the application is approved (not rejected) then the exporter is requested to pay a service charge of 0.09 percent of total amount in the Commercial Invoice. The payment should be made in Nepalese currency.
A. TEPC issues Certificates of Origin in One Spot Export Clearing House, Babarmahal, Kathmandu
B. The following members of FNCCI are authorized by FNCCI to issue Certificate of Origin.
1. Ilam Chamber of Commerce & Industry, Chowk Bazar, Ilam.
2. Jhapa Chamber of Industry, Bhadrapur.
3. Mechi Chamber of Commerce & Industry, Dhulabari, Jhapa.
4. Chamber of Commerce & Industry Sunsary, Dharan.
5. Chamber of Commerce & Industry Itahari, Itahari.
6. Chamber of Industries Morang, Biratnagar.
7. Morang Merchant’s Association, Biratnagar.
8. Dhankuta Chamber of Commerce & Industry, Dhanakuta.
9. Lahan Chamber of Commerce & Industries, Lahan. Siraha.
10. Saptari Chamber of Commerce & Industry, Rajbiraj.
11. Chamber of Commerce & Industry Malangwa, Malangwa, Sarlahi.
12. Jaleshwor Chamber of Commerce & Industry, Jaleshwor, Mahottari.
13. Janakpur Chamber of Commerce & Industry, Janakpur, Dhanusha.
14. Bhaktapur Chamber of Commerce & Industry, Industrial Estate, Bhaktapur.
15. Kavre Chamber of Commerce & Industry, Banepa.
16. Lalitpur Chamber of Commerce & Industry, Patan, Lalitpur.
17. Nepal Chamber of Commerce, Kantipath, Kathmandu.
18. Bara Chamber of Commerce & Industry, Kalaiya.
19. Birgunj Chamber of Commerce & Industries, Birgunj.
20. Chitwan Chamber of Commerce & Industry, Chitwan.
21. Makawanpur Chamber of Commerce & Industry, Hetauda.
22. Rautahat Chamber of Commerce & Industries, Gaur.
23. Lekhnath Chamber of Commerce & Industry, Lekhanath, Kaski.
24. Pokhara Chamber of Commerce & Industry, Pokhara.
25. Butwal Chamber of Commerce & Industry, Butwal – 8, Rupandehi.
26. Krishna Nagar Chamber of Commerce & Industrym, Krishnanagar, Kapilbastu.
27. Chamber of Commerce & Industry Nawalparasi, Ramgram, Nawalparasi.
28.Siddharthanagar Chamber of Commerce & Industry, Bhairahawa,Rupandehi.
29. Taulihawa Chamber of Commerce & Industry, Kapilvastu Municipality.
30. Dang Chamber of Commerce & Industry, Trivunnagar, Dang.
31. Tulsipur Chamber of Commerce & Industry, Tulsipur, Dang.
32. Nepalgunj Chamber of Commerce & Industry, Nepalgunj, Banke.
33. Kailali Chamber of Commerce & Industry, Dhangadhi.
34. Kanchanpur Chamber of Commerce & Industry, Mahendranagar.
35. Sindhupalchok Chamber of Commerce & Industry, Sindhupalchok
C. The following chapters of CNI are authorized to issue Certificate of Origin
1. Jhapa Chapter Birtamod, Jhapa
2. Koshi Chapter Biratnagar
3. Parsa-Bara Chapter Birganj
4. Banke Chapter VarshaMetal Industries, Banke
5. Kanchanpur kailali Chapter MahendraNagar
D. The following members of NCC are authorized to issue Certificate of Origin.
1. Chamber of Commerce, Jhapa
2. Morang Chamber of Commerce, Morang
3. Byapar Sangh Rupandehi, Rupandehi