Plastics Export/Import : COO - Country Of Origin Certificate Explained -

A Certificate of Origin (COO) is an official document declaring which country goods were manufactured, processed, or obtained in.

Types of Certificates:

Non-Preferential COO (Certificate of Origin):

• It contains the basic country declaration
• It is a standard international trade document
• Used for deals with no special trade agreements
• It is common for plastic raw materials

Preferential COO (Certificate of Origin):

• Used in cases of trade agreements
• Have special tariff rates
• Have duty reductions
• Used for regional trade blocks

Key Information Included:

• Manufacturer details
• Product description
• HS codes
• Manufacturing location
• Product composition
• Processing details of the goods

HS (Harmonized System) codes are standardized 6-digit numbers used worldwide to classify and identify products in international trade. They help countries consistently track imports and exports and determine applicable duties and taxes.

Common uses of COO (Certificate of Origin) in Plastics:

For raw Materials:

• Plastic resins
• Additives
• Masterbatch
• Compounds
• Recycled materials

A masterbatch is a concentrated mixture of pigments, additives, or other compounds that are encapsulated in a carrier resin. It's used to color plastics or add specific properties to them during manufacturing.

For finished products:

• Plastic parts
• Packaging materials
• Consumer goods
• Industrial components
• Semi-finished goods

Documentation Process:

Required Documents:

• Commercial invoice
• Packing list
• Manufacturing declaration
• Technical specifications
• Process documentation

Packing list is a shipping document that details the contents of a package or shipment, including quantities, weights, and descriptions of all items being transported.

Manufacturing Declaration is an official document that states where and how a product was manufactured, including details about the production process, location, and compliance with relevant standards or regulations.

Steps followed for the verification process:

• Material sourcing check
• Processing location
• Value addition
• Transformation proof
• Documentation review

Important aspects to check:

• Accurate HS codes
• Proper documentation
• Material traceability
• Processing records
• Value-added calculations

Material traceability is the ability to track and document the complete history of a material or product, including its origin, processing steps, and movement through the supply chain.

Value-added calculation is determining the difference between the final selling price of a product and the cost of materials/components used to produce it, showing how much value was created during manufacturing.

Example of a COO (Certificate of Origin) in the plastic industry:

Company in USA buying PP (Polypropylene) from Saudi Arabia

Certificate Details:

• Product:               PP Homopolymer
• Grade:                  H1500
• HS Code:             3902.10
• Quantity:             20 metric tons
• Origin:                 Saudi Arabia
• Manufacturer:   "Saudi petrochemical company"

Documentation Required:

Basic COO (Certificate of Origin) Information:

• Exporter details
• Consignee details
• Invoice number
• Shipping details
• Product description

A consignee is the person or company who is named as the receiver of shipped goods in shipping documentation and legally accepts delivery of the shipment.

Specific Details:

• Resin specifications
• Production location
• Batch numbers
• Manufacturing date
• Testing certificates

Why COO (Certificate of Origin) is important:

• Determines duty rates (customs)
• It affecrs customs clearance
• It ensures trade compliance
• It ensures quality assurance
• It provides material traceability

COO (Certificate of Origin) process flow:

• The manufacturer issues declaration
• The chamber of Commerce validates the documents
• The embassy or consulate can legalize the documents
• The documents are submitted to Customs 
• The import clearance is issued

This helps track the material from production to delivery while ensuring proper duties and regulations are followed.