Self Certification Scheme of Export Inspection
Self Certification Scheme of Export Inspection
Export Inspection Council (EIC) has introduced the Self Certification Scheme for the approved exporters to issue the Self Certified Certificate of Origin (CoO). The Certificate of Origin is a vital international trade document that establishes evidence on the origin of goods/commodities imported into any country. Previously, a Certificate of Origin (CoO) was issued under various trade agreements by designated agencies. As part of the self-certification scheme, the eligible exporters and manufacturers certify the manufactured goods as originating from India and issues Self Certified Certificate of Origin. In this article, we will look at the Self Certification Scheme of Export Inspection in detail.
Self Certified Certificate of Origin (CoO)
The Self Certified Certificate of Origin (CoO) is a pre-shipment inspection certificate. These documents proclaiming in which country a product was manufactured. The certificate of origin contains the details of the product such as its destination and the country of export. Previously, Certificates of Origin (CoO) was issued under following trade agreements by designated agencies:
- Preferential Trade Agreements (PTA)
- Free Trade Agreements (FTAs)
- Comprehensive Economic Cooperation Agreements (CECA)
- Comprehensive Economic Partnerships Agreements [(CEPA)
According to the self-certification scheme, an exporter certifies issues the Self Certified Certificate of Origin.
Importance of Self Certified Certificate of Origin (CoO)
- Most countries need the Certificate of Origin for customs clearance
- The CoO is an important document for determination of duties of export
- For advance cargo reporting the CoO should be needed.
The benefit of the Self Certification Scheme
The key benefit of the Self Certification Scheme is listed as follows:
- The self-certification scheme has detached the need for obtaining the certificate of inspection from an outside agency.
- This system of self-certification is being introduced to reduce transaction cost
The eligibility criteria for obtaining the benefit of a self-certification scheme for export inspection are listed as follows:
The DGFT recognized Manufacturer and exporters are allowed to inspect the product without involving any other agencies. The following types of status holders are eligible for this scheme:
- One Star Export House
- Two Star Export House
- Three Star Export House
- Four Star Export House
- Five Star Export House
The Self Certification Scheme facility is available to manufacturers of the following products:
- Engineering Products
- Chemical and Allied Products
- Marine Products
Self Certified Certificate of Origin (CoO) will be issued only for the products that are manufactured under the Industrial Entrepreneurial Memorandum (IEM), Industrial License (IL) and Letter of Intent (LOI) issued to manufacturers.
Self-Certification Scheme benefit is granted to the eligible exporter for one year. The recognition under this scheme shall be co-terminus with the validity of the Status Certificate. The exporter will be eligible for an extension of the self-certification scheme once the Status Certificate is renewed
The application procedure for recognition and registration as an Approved Exporter for availing the benefit of Self Certification Scheme is explained in detail below:
- As mentioned above, Status Holders will be recognized by DGFT as Approved Exporters for Self Certified Certificate of Origin (CoO) based on the availability of required infrastructure, capacity, and trained manpower.
- The eligible exporters need to submit an application along with the supporting documents to the Directorate General of Foreign Trade (DGFT) office for the recognition as an Approved Exporter. The prescribed application form is enclosed here:
Nomination of Person
All eligible exporters have to nominate at least one person who is a regular employee of the firm for certifying the certificates of origin and to issue a Self Certified Certificate of Origin (CoO).
Training on Rules of Origin
After verifying the application, the Export Inspection Council (EIC) will conduct a training program for the person nominated by the exporters. The training will be given on the Rules of Origin (RoO) concepts and determination of origins.
On successful completion of this RoO training program, the Export Inspection Council will inform the DGFT about the details of persons who have completed the training module. After the training, the nominated persons will be eligible to certify the Certificate of origin and issue a Self Certified Certificate of Origin (CoO) on behalf of the exporter.
Identification Number for Exporters
After conducting the inspection, the Export Inspection Council recognizes the manufacturing firms for the issue of self-certification. DGFT will issue a unique identification number to all Approved Exporters apart from the Import Export Code (IEC) numbers.
Self Certification Procedures
DGFT will develop and host an “Approved Exporter Portal” for the self-certification process. The approved exporter has to fill the details of the consignment for which a Certificate of Origin is required in the application module of the self-certification portal
The following mandatory details need to be provided in the application of the Self Certified Certificate of Origin (CoO).
- HS Code
- Full description of the product,
- FOB value of the product
- The origin criterion prescribed under the FTA
- The Approved Exporters need to take a print of the Certificate of Origin in the authorized under the preferential agreements under which the products are to be exported.
- The self-certified Certificate of origin will cover a single consignment and each such consignment may contain one or more different export products.
Note: Each product qualifies separately in its own right under the relevant free trade agreement.
- The self-certified Certificate of origin should not contain any erasures or superimpositions. A fresh CoO needs to be reprinted if any alteration has made on the CoO.
- The self-certified Certificate of origin will be valid for the period prescribed in the free trade agreement under which the products are being exported.
Documents to be retained by the Exporter
The below-mentioned documents need to be retained by the Approved Exporter for five years from the date of issue of the self-certified certificate of origin. Customs authorities may require these documents at any time during the five years.
- Copy of the self-certified Certificate of Origin (CoO)
- Shipping invoice
- Bills of lading
- Bill of entry for imported raw material
- Sales invoice for locally procured raw material or inputs
- All books of accounts relating to the costs of raw materials