COO (Certificate of Origin)

A Certificate of Origin (COO) officially declares where goods were manufactured or underwent substantial transformation, serving both customs compliance and trade agreement purposes. For textile buyers, the COO can mean the difference between standard duty rates and significant savings under preferential trade arrangements.

The document comes in two fundamental types. Non-preferential certificates simply state the country of origin for customs purposes—required by many countries regardless of any trade agreements. Preferential certificates qualify goods for reduced or zero duties under specific trade arrangements: Form A for Generalized System of Preferences (GSP) benefits, RCEP certificates for Regional Comprehensive Economic Partnership members, or bilateral FTA certificates for specific country pairs like China-ASEAN.

In China, the China Council for the Promotion of International Trade (CCPIT) and local chambers of commerce issue most certificates of origin. The application requires exporter and importer details, product descriptions matching the commercial invoice, HS codes, quantities, and values. Processing typically takes a few days, so applications should be submitted early in the shipping timeline.

Origin determination follows specific rules that matter for textiles. "Wholly obtained" applies when raw materials are sourced and manufacturing occurs entirely in one country—straightforward for domestically grown cotton woven in Chinese mills. "Substantial transformation" applies when imported materials undergo processing significant enough to change the HS code—yarn imported from one country and woven into fabric in another typically qualifies the fabric as originating from the weaving country. Value-added rules set minimum percentages of local content for origin qualification.

The COO must align perfectly with other shipping documents. Discrepancies between the certificate and the commercial invoice or bill of lading—different quantities, inconsistent product descriptions, mismatched HS codes—can trigger customs delays or denial of preferential treatment. For LC transactions, the certificate often appears in the required document list, making accuracy essential for payment.

Buyers seeking duty savings should understand which preferential arrangements apply to their imports and ensure suppliers can provide the appropriate certificate type.