I recall a time when, as a much younger me, I was in absolute awe of centenary celebrations. It was a time when neither anyone known to me nor the possessions that my family owned had turned 100 years old. I vividly recall how I had searched for things that would shortly turn three digits. I recall the desire to be present at a centenary celebration – a time reminiscent of, as the Gibb brothers (Bee Gees) sang in their 1969 song First of May: “When I was small, and Christmas trees were tall.”
Then time seemingly picked up speed, and now it feels like not a year goes by without there being a centenary or two. As a case in point, the instalment of this column published on March 17 was dedicated to the Incoterms® centenary. There is another upcoming chamber-related centenary celebration, which relates to the formalisation of the role of chambers of commerce as issuing agencies for certificates of origin (COOs). This formalisation can be traced back to the International Convention Relating to the Simplification of Customs Formalities, which was signed in Geneva, Switzerland, in November 1923. The Simplification of Customs Formalities was reinforced with the Revised Kyoto Convention, which entered into force on February 3, 2006. The responsibility of the convention’s administration was assigned to the Economic Section of the League of Nations, the frontrunner of the United Nations, in January 1924. South Africa, or rather the Union of South Africa, as it was known back then, ratified the convention in August 1924.
One of the primary reasons for delegating the issuance of COOs to chambers of commerce was that, in most countries, the chambers had a widespread network that facilitates effective functioning. Moreover, chambers of commerce were, and continue to be, considered competent organisations that are reliable and accountable third parties, owing to their perceived neutrality and impartiality. But that is not to say there are no challenges. Considering the lack of harmony in issuing COOs internationally, the International Chamber of Commerce’s (ICC’s) World Chambers Federation Council on International Certificate of Origin was established to enhance and promote the unique position of chambers of commerce as the natural agents for issuing trade documents. The federation has also provided a universal set of guidelines for issuing and attesting COOs by chambers of commerce all over the world.
As the ICC so eloquently reminds us: “A COO confirms the ‘nationality’ of a product and serves as a declaration to satisfy Customs or trade requirements. COOs are mostly required for Customs clearance procedures to determine duties or legitimacy of imports.” The core takeaway here is ‘nationality’. If you read the March 17 column, you would know that Incoterms® is a creation of the ICC.
COOs confirm that goods in a shipment are wholly obtained, produced, manufactured or processed in a particular country. Local chambers have the unique position to operate as the natural and trusted agent in issuing COOs, which are of two types: non- preferential COOs, which are also known as ‘normal COOs’ and are issued for goods that are not subject to preferential treatment; and preferential COOs, which are for goods subject to reduced tariffs or exemptions and tend to be associated with regional trade agreements.
If you are interested in learning more about COOs, the ICC website offers three tools: COO Guidelines (Universal set of procedures for issuing and attesting COOs); COO Verification website (Online tools for Customs authorities to verify the authenticity of COOs); and Genesis (digital tool to obtain COO statements on invoice declarations), which “offers a reliable verifying tool not only to exporters for their origin statement but also importers and Customs authorities, which aims to reduce fraud risks and costs and to facilitate smoother Customs checks.”