What is a certificate of origin, and when does a buyer need one?
Updated
A certificate of origin is a document that states which country goods were made in. Most US imports don't need a separate certificate: customs relies on the country of origin shown on the commercial invoice and the goods' marking. You need one when you want to claim a free trade agreement tariff preference, or when a buyer or foreign customs authority asks for it. Ask your broker which applies before the goods ship.
Two different things
- A general (non-preferential) certificate is proof of where the goods come from. Foreign customs offices or buyers sometimes want it, and it may also be required for a letter of credit. It doesn't reduce duty. Some countries want it validated by an outside body such as a chamber of commerce.
- A free trade agreement certification supports a claim for reduced or zero duty, and only works if the goods meet the agreement's origin rules.
The US International Trade Administration describes the same two types (trade.gov, Special Documents).
When you are importing into the US
Origin still matters, because duty rates, marking and tariffs such as Section 301 depend on it. At entry you declare the country of origin. If you want a trade agreement rate, you need to support the claim. The USMCA is the clearest example, per CBP's USMCA FAQs:
- No official form is required. The certification must contain the minimum data elements set out in the agreement, and any format works if it has them.
- The importer, exporter or producer may complete the certification.
- The importer must have a valid certification in its possession when it makes the claim.
- A certification is generally not required for a commercial importation where the value of originating goods does not exceed US $2,500, as long as it is not part of a series of importations arranged to evade the rules. Ask your broker how this applies to your shipment.
When you are exporting from the US
If you sell abroad, your buyer or their customs office may ask for a certificate of origin. Our export paperwork checklist covers where it fits among the other documents. Your freight forwarder or broker can say whether your destination wants one.
How to get one
- Ask the buyer or broker which type and format are required.
- For a FTA claim, check the goods qualify under the origin rules, and keep the supporting records.
- For a general certificate, ask your local chamber of commerce or your forwarder how they're issued.
- Keep a copy with the commercial invoice, packing list and bill of lading.
Common mistakes
- Assuming "shipped from" means "made in."
- Claiming a preference without records to support it.
- Names, descriptions or quantities that differ from the invoice.
- Waiting until the goods are on the water.
Where Shield fits
Shield doesn't issue or validate certificates of origin. It handles the payment side for importers and exporters: a US business account, a business credit card with no upfront or subscription fees, and supplier payments by wire. Owners can live outside the US, with a US company.
FAQ
Is a certificate of origin required for every import? No. It is required when you claim a trade agreement preference or when a party asks for it. Customs still wants origin on the entry.
Is it the same as the "made in" label? No. The label is marking on the goods. The certificate is a document.
Who signs it? For USMCA, the producer, exporter or importer. For a general certificate, it depends on who issues it.
Next step
To see how Shield supports trade businesses with accounts, cards and supplier payments, visit Shield bank accounts.