Tuesday, October 29, 2013

#lovemychamber - The Return on Investment on my Chamber Dues --- Every Tuesday - Reason #8 - Certificates of Origin - Generic and Electronic

Millions of Certificates of Origin are issued each year. The 1923 Geneva Convention and subsequent 1999 Kyoto Convention have seen governments formally recognize the important role chambers play in this domain, deeming them authorities and credible trusted third-parties in the issuance of Certificates of Origin.


CERTIFICATES OF ORGIN - from Export.gov
The Certificate of Origin (CO) is required by some countries for all or only certain products. In many cases, a statement of origin printed on company letterhead will suffice. The exporter should verify whether a CO is required with the buyer and/or an experienced shipper/freight forwarder or the Trade Information Center.
Note: Some countries (i.e., numerous Middle Eastern countries) require that certificate of origin be notarized, certified by local chamber of commerce and legalized by the commercial section of the consulate of the destination country. For certain Middle Eastern countries, the National U.S.-Arab Chamber of Commerce may also provide such services.
For textile products, an importing country may require a certificate of origin issued by the manufacturer. The number of required copies and language may vary from country to country.
Certificate of Origin for claiming benefits under Free Trade Agreements
Special certificates may be required for countries with which the United States has free trade agreements (FTAs).Watch our FTA webinar for more information. Some certificate of origin including those required by the North American Free Trade Agreement (NAFTA), and the FTAs with Israel and Jordan, are prepared by the exporter. Others including those required by the FTAs with Australia; the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) countries; Chile; and Morocco; are the importer’s responsibility). Click on a specific country below to learn details on how to document origin.
Certificate of Origin for goods not manufactured in the United States
Certificates of origin for goods not manufactured in the United States can be obtained from the U.S. Chamber of Commerce. The U.S. Chamber of Commerce uses EZCertOrigin™, a service provided by ICS Consulting, LLC, to process all requests submitted for certificates of origin (both U.S. and non-U.S.). Exporters can visit EZCertOrigin or call 1-888-885-6650 to obtain the forms required by the U.S. Chamber of Commerce and detailed instructions on how to fill out the forms. The fee for each certificate is $40.00 for U.S. Chamber members. The fee for each certificate is $150.00 for non-U.S. Chamber of Commerce members. It costs $5.00 per copy for certified copies of certificates.
USCIB is now issuing electronic Certificates of Origin (eCOs). USCIB's eCOs save time and money, bypassing the delay and expense of employing messengers to obtain certification.  After a few simple steps, and certification by USICB, eCOS can be printed from any computer. We are a trusted name in the United States, and well known among customs administrations around the world. USCIB has over four decades' experience in export documentation. 

Source: Export.gov 



Electronic Certificates of Origin - Q & A From the LAchamber.com


What is a Certificate of Origin?

A Certificate of Origin (CO) is a document which states the origin of goods being exported. Virtually every country in the world considers the origin of imported goods when determining what duty will be assessed on the goods or, in some cases, whether the goods may be legally imported at all.



Who needs it?
Exporters. Certificates of Origin may be needed to comply with Letters of Credit, import Customs requirements or a buyer's request.


How does the Chamber know the information being provided by the exporter is accurate?
It can't. Chambers certify only that which they are able to verify. Certification guarantees the accuracy or truth of information contained in the document and is expressed by using the word "certified." Certification may be given for the whole document or may be limited to the position and identity of the Signatory. If the Chamber is presented with a declaration attesting to commercial details, the accuracy of which it cannot check it must confine itself to stamping the document attesting to the position and the identity of the signatory. 

Can exporters or agents "self-stamp" certificates by acquiring and applying the Chamber seal?
No. Chambers that provide their seal directly to exporters or their agents are exposing themselves to liability by providing their seal without examining the documents and going through the check list. In some cases where Chambers have given their seal there have been cases involving the fradulent issue of certificates or the forging of certifications.

Can a Freight Forwarder stamp and sign?
No. The criteria for having chamber of commerce certify Certificates of Origin is they have direct members who are exporters and should retain profile details of the exporters in their database. An issuing body should not be an organization that provides services to exporters such as freight forwarders, which could compromise their integrity and impartiality in the authentication of Certificates of Origin.

Can a chamber sign Declarations of Origin or invoices before the exporter?
No. Where it is necessary for a declaration of origin or any other declaration to be on the export invoice, applicants must present the invoice bearing the requisite exporter's declaration and any requirements of the particular country to which the goods are being consigned or as required to meet reasonable commercial needs. The declaration on the original and on each copy invoice must be signed.

What are the benefits to my business if I switch to electronic?
Completing your Certificate of Origin online through your local chamber of commerce helps eliminate the likelihood of errors and reduces the cost. Also key information is stored, allowing for repeat Certificates to be created without the need for ongoing repetitive form filling.

Who is authorized to sign on behalf of the Exporter?
Only the principals or their duly authorized signatories or agent. Principals include in the case of a sole trader, by the proprietor himself; in the case of a partnership, by a partner of the firm; in the case of a corporate body, by a director or the Secretary. Alternatively, declarations may be signed by an authorized agent of the principal.

Who determines whether a Certificate of Origin is required?The responsibility to comply with the requirements of the importing company rests with the exporter — not the chamber. It is also the exporter's responsibility to obtain the Certificate of Origin, in accordance with the buyer's or country of import requirement.

Is there a need to have two Certificates of Origin that specify different criteria — e.g., one for U.S.-originated products and one for non-U.S.?
No. The Certificate of Origin can be one document for both, which means the declarations are generic for both the Chamber and the Exporter and where products are grouped by origin on the Certificate.

What is a "letter of waiver" in relation to Certificates of Origin?
The letter of waiver is in fact the Formal Undertaking, which removes the need for a notary or lawyer. The waiver means the exporter takes responsibility and holds the Chamber harmless without getting tangled up in legalism. It has nothing to do with opening the door for pre-approving certificates or providing a chamber stamp to an exporter or freight forwarder to self stamp.

Does a Certificate need to be notarized?
No. Notarization is old hat and was replaced by Formal Undertaking, which means the Exporter's Authorized officer makes a declaration to the chamber, indemnifies, provides a list of the signatories and agrees to keep the Chamber updated of any changes.

What is a NAFTA Certificate?The NAFTA Certificate of Origin only applies for goods exported between the United States, Canada and Mexico. Exporters can authorize NAFTA certificates without needing a stamp from the Chamber.

How do I get started?
Fill out the online form. For questions, contact Hilda Mesta, 213.580.7517
Source:  LAchamber.com

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The Value Proposition - Chamber of Commerce annual dues: Around $250. Value of the Chamber of Commerce benefit #8 for a medium sized exporting company with no other participation in the chamber; $500 - Return On Investment Features #1-#8 = $4450; Total Return On Investment for Chamber Membership - 1780%.

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