- What is a Certificate of Origin?
A Certificate of Origin is a document which shows the country in which an item destined for export was manufactured. Particularly;
- a) The Certificate of Origin contains information on the destination of the item and other relevant pieces of information with regard to the export.
- b) A Certificate of Origin must be issued by a body authorized by the state.
- c) An item may be deemed wholly or partly made in a country depending on the input used in its manufacture.
Under the African Continental Free Trade Area (“AfCFTA”), an exporter must be able to prove the origin of the goods they are exporting whether or not the goods were manufactured by them. The proof of origin of any product may be shown by a validly issued Certificate of Origin (in hard or electronic copy) or by a valid Origin Declaration by an approved exporter.
The Certificate of Origin should be in any of the official AU languages which are Arabic, English, French, Portuguese, Spanish, Kiswahili and any other African language. There may be the need for an exporter to translate.
- How long is a Certificate of Origin valid for?
A Certificate of Origin is valid for 12 months from the date of issuance and must be submitted to the appropriate customs body within its period of validity. After the validity period elapses, it will only be accepted under exceptional and justified circumstances.
- Which documents must be added to an application for a Certificate of Origin?
Under the AfCFTA, documents that relate to the following may be added to the application;
- a) Production processes in the originating country.
- b) Purchase, cost, value of and payment of the product.
- c) Shipment of the product.
- d) Any other documents the designated authority may require.
- How does a business obtain a Certificate of Origin?
The business entity or exporter will obtain the Certificate of Origin from the Chamber of Commerce or an institution of similar nature responsible for exportation of goods and services from one country to another.
- Can a Certificate of Origin be issued retrospectively?
Yes, the designated authority can issue a retrospective Certificate of Origin if it verifies that the information supplied by an exporter is consistent with the information in their records. The authority must however indicate that the certificate was issued retrospectively.
- Can the rejection of a Certificate of Origin be challenged?
Yes, if the exporter is able to prove to the competent importing authority that due to some technical reasons their Certificate of Origin was rejected in the importing country although it was validly issued in the exporting country.
- Can a lost /destroyed Certificate of Origin be replaced?
Yes, an exporter may apply to the issuing authority for a duplicate Certificate of Origin in case of theft, destruction or loss of their Certificate of Origin. A duplicate Certificate of Origin may only be issued if the exporter has the export documents in their possession. The issuing authority must endorse the duplicate as a duplicate Certificate of Origin together with the original and duplicate issuance dates.
- Can the Customs Authority demand more information after receiving a Certificate of Origin?
The Customs Authority is mandated to check that the official forms are filled in a manner that prevents fraudulent activity. The Customs Authority has the right to ask for further evidence and inspect the exporter’s accounts to verify the information provided.
- Can dismantled or non-assembled goods be supported by one Certificate of Origin?
Yes, under the right circumstances, non-assembled or dismantled goods being imported in instalments may be validly accompanied by a single proof of origin when presented upon the arrival of the first instalment.
- What happens to goods already in transit or storage at the start of trading?
Goods in transit or storage at the time trading starts may be eligible for provisions under this if the exporter is able to send to the Customs Authority of the importing country, a retrospectively issued Certificate of Origin together with documents that show that the goods were transported directly within the trade area.
- Are any goods exempted from the proof of origin requirements?
Yes. Small packages from private citizens (not more than $500 in value) of member countries to citizens of another member country will be exempt if they are originating products.
Also, occasional imports of originating products intended for personal use of recipients, travelers or their families will not be considered as commercial imports. The threshold value for goods that can form part of a traveler’s luggage is $1,200.
- How will the Rules of Origin apply during fairs and exhibitions?
An exporter will benefit from the preferential treatment provided under AfCFTA if they sell goods originating from a member country in a fair or exhibition in another member country as long as the Customs Authority in the second member country is satisfied that the exporter sold the goods in the second member country. The exporter will also have to prove that the goods were not used for any other purpose aside display at the fair or exhibition. The Certificate of Origin must indicate the particulars of the fair or exhibition.
Foreign products exhibited at fairs or exhibitions will be subject to the ordinary customs regime of the importing country.
- Will goods that are transported outside the AfCFTA qualify for preferential treatment?
It depends. Ordinarily, goods must be transported from or through member countries of the AfCFTA to benefit under the regime. However, under the right circumstances, goods that are transported to an importing member country through other channels may still qualify even if those channels were transported outside the free trade area as long as they originated from a member country.
- How long must an exporter keep export related records?
An exporter who applies for a Certificate of Origin must keep a copy of their application for a minimum of 5 years after the completion of the application.
- How long must an importer keep import related records?
An importer who benefits from preferential treatment must keep documents relating to the import for a minimum of 5 years from the date the preferential treatment was granted.
- How long must a Designated Authority keep records of Certificates of Origin?
A Designated Authority in charge of exports in a member country must keep copies of all Certificates of Origin it has issued for a minimum of 5 years, while Designated Authorities in importing member countries must keep all Certificates of Origin submitted to them for a minimum of 5 years.
- What are the sanctions for failure to keep export or import related documents?
A member country may refuse to accord the preferential treatment due an exporter or importer who fails to maintain records relating to the origin of the goods or denies access to such records.
- What happens if there is a discrepancy or formal error in the documentation?
Slight discrepancies between statements in the Certificate of Origin and documents submitted to Customs or other Designated Authorities do not necessarily amount to the cancellation of the Certificate of Origin. An exporter or importer who is able to show that the Certificate of Origin corresponds with the goods submitted will avoid the cancellation of their certificates.
Also, formal errors or typographical errors on a Certificate of Origin will not result in the rejection of the certificate if the errors do not create doubts about the accuracy of the contents of the certificate.
- How different is the AfCFTA’s Certificate of Origin from other Certificates of Origin?
Unlike most Certificates of Origin, the AfCFTA’s Certificate of Origin has no QR code. Most features of the AfCFTA’s Certificate of Origin are similar to other international trade agreements. The QR code, if added to the certificate, will make it uniquely identified and can be easily traced with the aid of technological gadgets.
————
Michael Apalbilah B.Y is a lawyer at AB & David specializing in the areas of Government Business & Regulation, Dispute Resolution and Africa Trade.
Michael holds a DALF C1 certification from the Centre International D’Études Pédagogiques in France.
