Certificates of Origin – what are the charges / costs?
Hi. We are starting to work with companies in countries where they require certificates of origin (such a Kuwait and Lebanon). As we were unaware of them, we did not add the costs to get such certificates in to our prices and are now stuck on how best to move forward. I wondered if any one had any advice on how they handle this when dealing with customers from these countries? I do not want to turn the business away, however I do not have it within my margins to pay it each time. Any advice you can provide will be appreciated.
Your freight forwarder, or local Chambers of Commerce will be able to advise you on this, dependent on the size of your shipments. Costs are not huge, but is dependent on whether you are a member.
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Hi Remi – have you already quoted a shipping term (Incoterm) or just a price for the goods? If you have quoted an Incoterm that includes the cost of export documents you have two choices, swallow the costs or go back to the customer with an amended price. A couple of tips:
1. Speak to your customers in Kuwait and Lebanon and ask if they do require an actual Certificate of Origin or will a invoice declaration of origin be sufficient
2. If they say they want a CofO ask them is an EC Certificate of Origin is sufficient – this is cheaper and quicker to get though you will need to indemnify the Chamber who stamps it as the “normal” document is an Arab British CofO which costs more and takes longer
Don’t be worried about going back to your customer with questions – it helps build up a partnership and they know you are looking into things correctly
You can apply online for your certificate of origin at www.e-zcert.com/uk The certificate will be issued by your local chamber of commerce and applying online is often cheaper than postal/manual applications.
Please let me know if you require any help getting started.