Certificate of Origin – The Birth Certificate! 🌏
Question: Why does it matter where goods are made? Answer: TAX (Duty).
Scenario:
- India and Sri Lanka have a Free Trade Agreement (FTA). Tax = 0%.
- India and China have NO agreement. Tax = 20%.
- You import Tea.
- Customs Officer: "Is this Indian Tea (0% Tax) or Chinese Tea (20% Tax)?"
- Proof: You show the Certificate of Origin.
Definition: A document that certifies the country where the goods were produced or manufactured.
Who issues it? 🏢
Usually issued by Chambers of Commerce (e.g., FICCI, CII in India) or Export Promotion Councils.
Types 📜
- Non-Preferential: Just proves origin. No special tax benefit.
- Preferential: Proves origin AND claims lower tax (under FTA).
The 'Made in...' Label
Sticking a "Made in India" label is not enough. You need the official certificate signed by an authorized body.
Quiz Time! 🎯
Test Your Knowledge
Question 1 of 5
1. Certificate of Origin is used to determine:
💡 Final Wisdom: "In trade, geography is money. Being 'Made in India' can save you 20% tax if you have the right paper!" 🇮🇳💰
Next up: Inspection Certificate - Quality Check! ✅
