WCF WebinarSeries COs Introduction FIN 310310

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WELCOME TO WCF Webinar Series – Certificates of Origin (COs) Steve Baker,  Manager of International Trade Certification for the British Chambers of Commerce, will be our featured speaker Luz Rodriguez, Project Manager at ICC World Chambers Federation, will be our host Enjoy the session! www.worldchambersfederation.org

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TODAY’S SESSION: What are COs and why they are needed? How to determine and establish origin? Essential procedures and checklists for issuing COs Confidentiality rules and anti-fraud measures Customer care procedures for quality service, consistency and confidentiality COs trends – PCOs and ECOs

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WHAT IS A CO? A Certificate of Origin (CO) is a document attesting that goods in a particular export shipment are wholly obtained or produced or manufactured or processed in a particular country Example: UK history and structure European Community - CO

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EXAMPLES OF CO FORMS International Template for COs Kyoto Convention - 1999 CCPIT/CCOIC - China Dubai Chamber of Commerce and Industry - UAE

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HISTORY 1973 - UK joined European Community European regulations European Certificate of Origin 1991 - The Memorandum of Understanding (MOU) between BERR (DTI) and British Chamber of Commerce (BCC) was signed

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HISTORY The MOU set out the relationship between BERR (DTI) & BCC, it brought about 2 main changes: Issuing bodies are authorized by BERR (DTI) The requirement for certification staff to be trained Training funded by issuers quarterly fee

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STANDARDS OF AUTHORITY Training “Certificate of Competence” Mandatory staff certification: 2 people + Renewed every 3 years following mandatory refresher course Authorized signatories Contact ICC World Chambers Federation Inspection Regular programme of inspection to ensure adequate facilities Storage provisions for maintenance of records and files Security to safeguard all confidential trade documents

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STRUCTURE Department of Trade & Industry (now known as BERR) British Chambers of Commerce (BCC) Certification Practitioners Group (CPG) Issuing bodies

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UPON APPLICATION Obtain from applicant valid undertaking agreeing to: Abide by the rules Indemnify the issuing body against future claims for errors in certificates List of authorized signatories from applicant, renewable annually Formal undertakings must be renewed every 2 years, unless they are combined with a signature list as one form, when they must be renewed annually

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THE CERTIFICATE OF ORIGIN Why needed Official reasons Importing country regulations Commercial reasons Customer request Financial reasons Letter of credit

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ABOUT ORIGIN Exporters must declare the origin of goods and complete the reverse of the application (pink) copy of the CO It is important that documentation staff understand the rules of origin that apply to certificates

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ABOUT ORIGIN European community regulations have 2 different sets of rules for determining origin: Non preferential rules of origin for COs Preferential origin rules for EUR1/ATR/suppliers declarations

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2009 WCF WORLD COs SURVEY RESULTS 12 MILLION COs Switzerland 130,000 Belgium 229,000 France 455,000 Dubai 600,000 Turkey 700,000 Italy 750,000 China 3 million

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ABOUT ORIGIN Non Preferential Origin European community regulations 2913/92 and 2454/93 apply Both sets of rules are in PROCEDURES MANUAL

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ABOUT ORIGIN Preferential Origin Movement of goods between EC and countries with a preferential trade agreement EUR1 or ATR certificates required Chambers now authenticate these documents HM revenue and customs are responsible for verification of origin status Rules and procedures contained in customs notices 812, 827, 828 & 832

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HOW TO ESTABLISH ORIGIN Identify goods Goods must be clearly identified Normal trade descriptions should be used Brand names should NOT be used on their own

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HOW TO ESTABLISH ORIGIN Applicant makes origin claim on reverse of application (pink) copy Each of the 3 possible origin claims has specific criteria which the goods must satisfy

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HOW TO ESTABLISH ORIGIN Box 1 will be ticked where the goods are wholly obtained or produced in the UK Animal, vegetable or mineral products (incl. fish) Products made exclusively from any of these Scrap, waste or used products for recycling

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HOW TO ESTABLISH ORIGIN Box 2 should be ticked where the goods are of UK origin by virtue of the processing that the goods have been subjected to in the UK i.e. because of economically justified substantial process

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HOW TO ESTABLISH ORIGIN Box 3 is completed where the goods are not of UK origin Supporting proof of origin is required Check the evidence provided Does it clearly support the origin claim If in doubt request further proof

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REVISION OF CERTIFICATION PROCESS 4 primary checking operations Formal undertaking Signature Face checking Accuracy of origin claim

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THE CERTIFICATION PROCESS Formal undertaking Is a formal undertaking from the applicant held on file? Must be renewed every 2 years (annually if combined with signature list) Company agrees to abide by Standard Rules and indemnifies Chamber against inaccuracy of documents A template of a formal undertaking and letters of indemnity for members and non-members are available in the ICC WCF International CO Guidelines

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THE CERTIFICATION PROCESS Signatures A list of authorized signatories must be held on file Specimen signatures must be provided (renewed annually)

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THE CERTIFICATION PROCESS Face Checking Is product described in sufficient detail Are all necessary fields completed Are all documents consistent Metric system must be used

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THE CERTIFICATION PROCESS Accuracy of origin claim Origin claim must be checked Supporting documents Insufficient evidence - further proof required Possible company visit? Maybe a phone call sufficient

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THE CERTIFICATION PROCESS Remember the 4 primary checking operations: Formal undertaking Signature Face checking Accuracy of origin claim

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THE CERTIFICATION PROCESS Double Checking Once the entire checking operation is complete the documents should be passed to another staff member to be double checked

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THE CERTIFICATION PROCESS Stamping and signing When satisfied certify the certificate The official stamp applied to box 8 Authorized signatory signs in box 8(CEOs must attend Certification Assessment course) Authorized signatory name stamp to box 8 This procedure will vary for EXPRESS CERTIFICATES

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CERTIFICATION OF INVOICES AND DOCS Issuing bodies authenticate the signature on invoices, packing lists, declarations etc. Face check for obvious errors or statements that are clearly false

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CONFIDENTIALITY Office environment Duty of confidentiality to customer Quiet area Visits by external organizations - Fraud Squad, MI5, HM Revenue & Customs (HMRC) - see next slide

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FRAUD Inform your chief executive immediately Ensure there is an appropriate statutory order before handing over documents for examination For further advice contact WCF

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CUSTOMER CARE Quality Service Follow CPG guidelines Checks are necessary to avoid delays for goods and payments If documents are incorrect advise in friendly but firm manner and offer assistance where needed

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CUSTOMER CARE Consistency: Companies need to feel confident in the consistency of service offered by the chamber network Companies should be made aware of opening times for documentation Pricing Availability of e-Cert for EC and Arab docs

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CUSTOMER CARE Confidentiality Segregation of personal callers Stamping of documents away from the public area

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RECENT CO TRENDS Preferential Certificates of Origin (PCO) Electronic Certificates of Origin (ECO)

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WCF SUPPORT TO CHAMBERS ICC WCF CO Task Force ICC WCF International CO Guidelines (www.iccbooks.com)

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www.worldchambersfederation.org www.worldchambersfederation.org Thank you for participating in our WCF Webinar on COs! CONTACT: Steve Baker s.baker@britishchambers.org.uk +44 24 7647 2538 British Chambers of Commerce Luz Rodriguez lrz@iccwbo.org +33 1 49 53 28 42 ICC World Chambers Federation 38 Cours Albert 1er 75008 Paris, France LISTEN: To a recording of this webinar at: www.iccwbo.org/wcf on the COs page of our webinar series CongressLink