In accordance with the India-UAE Comprehensive Economic Partnership Agreement (India-UAE CEPA), the Director-General of Foreign Trade (DGFT) has issued a Trade Notice for Electronic Filing and Issuance of Preferential Certificate of Ownership (CoO) for India’s Exports with effect from May 1, 2022. The Joint Electronic Platform for Issuance of Certificate of Origin is going through an expansion to add one more Free Trade. Agreements/Preferential Trade Agreements to facilitate the technological application of Preferential Certificate of Origin (CoO), according to the Trade Notice No. 05/2022-2023 dated 29.04.2022. When requesting a CoO DGFT, businesses should be aware of the unique documentation requirements.
The article sheds light on various important details and updates about the Preferential Certificate of Origin.
Certificate of Preference for Origin
A Certificate of Origin can show which nation manufactured a given good or commodity. Goods eligible for preferred tariff treatment in the payment of tariffs are awarded preferential certificates of origin. Both a reduction in the ordinary tariff and total exclusion from taxes are possible with these duties. A situation like this occurs when two or more countries come to a trade agreement that includes exemptions for commodities sold or purchased between these countries. The CoO DGFT recently streamlined the application procedure by introducing an online application mechanism.
CoO e-platform: Common Digital Platform for Certificate of Origin Issuance
Single-point access to the Preferential Certificate of Origin (CoO) for all Free Trade Agreements and Preferential Trade Agreements for all agencies and all goods is provided by the typical digital platform. This computerised platform for issuing Certificates of Origin is made to make the exporting procedure easier for exporters. It is a requirement that all organisations that are designated to provide Certificates of Origin use this portal. To prevent fraud in international trade, this is essential in confirming the legitimacy of the Certificate of Origin CoO DGFT presented by exporters.
Common Digital Platform Service
Indian exports are already applying for and receiving Certificates of Origin (CoO) through the e-platform under the following bilateral trade agreements.
- India-Thailand Early Harvest Scheme
- India-Mercosur Preferential Trade Agreement
- Ind-Aus ECTA
According to the CoO DGFT Trade Notice, New Services
India-UAE CEPA will also become applicable for the Preferential Certificate of Origin, and the CoO e-platform (CoO DGFT) will issue the same from May 1, 2022.
The Message of Importance for Exporters
Here are a few things to remember.
- The specified issuing authorities must receive the supplied Certificate of Origin submissions through the e-COO platform for exports from India under the India-UAE Comprehensive Economic Partnership Agreement (India-UAE CEPA).
- After 25.02.2021, no manual application for such a CoO DGFT should be filed to an issuing agency. However, the granting agencies may still process any manual submissions filed before the deadline.
- The DGFT advised that the e-CoO system should generate all of the current CoO DGFT copies in addition to an additional copy, i.e., an electronic copy, for specific applications under the India-Mercosur PTA and India-Thailand EHS Trade Agreements. The officer’s picture signature and the stamp of the organisation that issued it must be on the electronic copy.
- The exporter may request that the issuing officer properly ink-sign and stamp all extra copies with their official seal. For submission to the officials of the partner nations to the Trade Agreement, physical copies of the issued CoO DGFT may be picked up postally or personally.
Registration of Exporters on the Common Digital Platform
Take into account the extra information below before registering on the Common Digital Platform for the relevant Exporters:
- A Digital Signature Certificate (DSC) would be necessary for electronic verification. It might employ identical digital signatures as other DGFT applications.
- The digital signature should contain the firm’s IEC incorporated in the DSC and can be either Class II or III.
- Any new exporting application must first register on the e-platform. The IEC holder’s email and mobile phone will receive the password.
- The “IEC profile” will be used if the IEC holder wants to change the email on which communications are sent.
Procedure for Exporter Registration
To issue a Certificate of Origin, the exporter must go to the Common Digital Platform’s official website. Verify the information that follows before continuing with the registration process:
- Exporters must update their IEC information on the DGFT portal (their mobile number and email address), as only that site will provide all the necessary details about the required exporter.
- Exporters must get the digital signature certificate from the CoO DGFT that includes the IEC and the full title of any listed director.
Preferential Certificates of Origin filing and issuance electronically can bring a substantial improvement in the efficiency of global trade procedures. Electronic CoO DGFT systems are advantageous to both governments and enterprises because they save paperwork, boost productivity, improve security, and increase accessibility. Trade is expected to become more accessible, more economical, and more ecologically friendly as more nations adopt these digital solutions, promoting economic development and international collaboration in the digital age.
1. Are electronic certificates of origin accepted in international trade legally?
Electronic CoOs comply with international trade laws and are legally recognised in a number of nations. To confirm that they are genuine, digital signatures are frequently used.
2. Is there a cost for issuing a CoO electronically?
The cost of issuing an electronic CoO can differ depending on the nation and giving body. For details on the fees that may be charged, it is advisable to contact the appropriate authorities.
3. How much time does it usually take to get a copy of an order electronically?
Electronic CoOs typically process significantly more quickly than conventional paper-based CoOs and can frequently be acquired in a matter of hours or days.
4. Do electronic CoOs have any security mechanisms in place to guard against fraud?
Yes, digital signatures and other safety safeguards are frequently used in electronic CoOs to protect against fraud and guarantee document authenticity.