Detailed information about all of the documents discussed on this page can be found on the International Trade OnLine website.
Certificate of Origin
Concept of Origin
In the European community there are specific regulations relating to the origin of goods, companies applying for certificates of origin should make themselves familiar with these regulations.
Substantial Transformation
This is the most common criteria in the determination of origin and should be understood by companies making application for a certificate of origin.
Percentage Rule
Where substantial transformation does not confer origin, it may be possible to apply a Percentage Rule, if there is such provision in the European Community Regulations.
Administering Bodies
The European Commission has overall authority for origin criteria in the Community , this authority has been delegated to Chambers of Commerce in the UK by the Department of Trade and Industry, and this is indicated on Certificates of Origin.
Non Preferential Origin
Origin Rules used in application for Certificates of Origin are based on No Preferential Criteria, as such goods covered by such documents may not be entitled to entry into the overseas country at Preferential Duty Rates.
Arab British Certificate of Origin
Arab League member states require that use of the Arab British Certificate of Origin, which is covered by its own Rules regarding origin, further the document may require to be legalized by the destination country embassy in the United Kingdom.
Insurance Certificate/Policy
Insurance Certificate/Policy
There is considerable difference between an Insurance Certificate and an Insurance Policy , it is therefore essential that the contract is clear in what type of insurance document is required.
Institute Cargo Clauses
These clauses detail the extent of Insurance cover provided are indicated on the Insurance Certificate/Policy.
Insured Value
This is the extent of the Insurance cover in monetary terms, and the dales contract should provide an indication of the level of insurance cover required.
Principles of Insurance
Insurance is effected on well established legal principles, which may impact on the level and conditions under which the underwriter is willing to offer insurance cover.
Movement Cerficate (EUR 1)
Preferential Trade Agreements
The European Community has concluded Trade Agreements with many overseas countries, to take advantage of any concessions under these Agreements the exporter should provide an approved EUR 1 as evidence that the goods covered meet the relevant criteria.
Preferential Trade Rules
Rules for Preferential Trade are detailed in Customs Public Notices, exporters applying for EUR approval should be familiar with the relevant Rules.
Binding Origin Information
To help avoid any possible misunderstanding it is possible to apply for Binding Origin Information (BOI)) via HM Revenue and Customs.
Penalties
HM Revenue and Customs, and overseas Customs authorities retain the right to impose financial penalties should examination of EUR 1 forms show that Preferential Origin has been claimed where not appropriate. Such penalties include the retrospective imposition of additional Duties and Taxes, plus other additional financial penalties.
Authentication
In the United Kingdom, Movement Certificates are authenticated at Chambers of Commerce on behalf of HM Revenue and Customs, the documents are endorsed using HM Revenue and Customs official stamps.
