A certificate of origin for machinery states in which country the goods were made. A non-preferential certificate records origin for ordinary purposes, while a preferential certificate or proof of origin lets the importer claim a lower duty under a trade agreement. Ask which one your customs authority needs before the machine ships.
Origin is not decided by where the shipment leaves from. It depends on where the goods were produced and on the rules that apply.
Non-preferential certificates
A non-preferential certificate of origin confirms the country of origin without giving any duty preference. It is used for customs statistics, for some import licences, for letters of credit that ask for one, and by some countries as a standard import document.
In India these are commonly issued by chambers of commerce or authorised bodies. The exporter applies with the invoice and packing list. Ask your broker whether your destination requires a certificate to be legalised or attested, which adds time.
Preferential certificates
A preferential certificate, or other proof of origin, supports a claim to a reduced or zero duty under a trade agreement. Examples are the India-UAE CEPA and the India-UK agreement; see EU, UK and UAE duty on Indian machinery.
The form and the issuing body are set by the agreement. Some agreements allow a declaration by the exporter on the invoice and some require an official certificate. Check the text of the agreement and with the destination customs office.
Rules of origin for machinery
Machinery often contains imported components such as motors, controllers and bearings. A machine does not qualify as Indian-origin simply because it was assembled in India. The agreement's rule, which depends on the HS code, sets how much processing or local value is needed.
Ask the maker to keep a bill of materials with the origin of major parts, and records of the assembly. Without those records you may be unable to support the claim if customs checks it later. In several systems the importer can be asked for origin evidence for some years after clearance, and a failed check can mean the duty saved is demanded back with a penalty, so keep the records filed with the shipment.
What to ask the supplier
Put origin in the purchase order so the supplier plans for it.
- State which type of certificate or proof you need, and the agreement it relates to.
- Ask who will apply, who pays and how long it takes.
- Check that the name, address, description and HS code on the certificate match the invoice exactly.
- Ask for a scan of the draft before the original is issued, because corrections after issue usually mean a new application.
- Confirm that the goods in the crate are those described, as a mismatch voids the claim.
Next step
Origin papers sit alongside the invoice, packing list and bill of lading. See documents to export machinery and the document pack your broker will ask for. We check these against the goods before loading. Book a free sourcing review.