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 of the origin of goods/commodities imported into any country. Previously, designated agencies issued a Certificate of Origin (CoO) under various trade agreements. As part of the self-certification scheme, the eligible exporters and manufacturers certify the manufactured goods from India and issue Self Certified Certificate of Origin. In this article, we will look in detail at the Self Certification Scheme of Export Inspection.
Self Certified Certificate of Origin (CoO)
The Self Certified Certificate of Origin (CoO) is a pre-shipment inspection certificate. These documents proclaim in which country a product was manufactured. The Certificate of origin contains the details of the product, such as its destination and the export government. Previously, Certificates of Origin (CoO) were issued under the 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 issued 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 essential document for the determination of duties on export
- For advance cargo reporting, the CoO should be required.
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 inspection certificate from an outside agency.
- This system of self-certification is being introduced to reduce transaction costs.
The eligibility criteria for obtaining the benefit of a self-certification scheme for export inspection are listed as follows:
The DGFT-recognized manufacturers and exporters can inspect the product without involving 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 the Self Certification Scheme is explained in detail below:
- As mentioned above, Status Holders will be recognized by DGFT as Approved Exporters for Self Certified certificates of Origin (CoO) based on the availability of required infrastructure, capacity, and trained manpower.
- The eligible exporters must submit an application and supporting documents to the Directorate General of Foreign Trade (DGFT) office for recognition as an Approved Exporter. The prescribed application form is enclosed here:
Nomination of Person
All eligible exporters have to nominate at least one regular employee of the firm to certify 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.
Upon completing 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 self-certification. The approved Exporter has to fill in 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 must be provided in the Self Certified Certificate of Origin (CoO) application.
- 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 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 must be reprinted if any alteration has been made to 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 documents below need to be retained by the Approved Exporter for five years from the 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 materials or inputs
- All books of accounts relating to the costs of raw materials
Post by Renu Suresh
Renu is experience content writer specialised in compliances and company rules.