Common Misconceptions in CO Certificate Processing

Three Common Misunderstandings in the Processing of CO Certificates

In international trade, the Certificate of Origin CO is a crucial document. It not only proves the origin of goods but also may affect tariff policies, trade barriers, and market access conditions. However, in actual practice, many enterprises have some misunderstandings about the processing of CO certificates. These misconceptions may lead to unnecessary economic losses or trade risks. This article will explore three common misunderstandings and provide readers with correct guidance based on relevant news information.

Firstly, many enterprises mistakenly believe that as long as their products are produced domestically, they can automatically obtain origin qualifications. In fact, this understanding is one-sided. According to the Regulations on the Origin of Import and Export Goods of the People's Republic of China, determining the origin of a product requires considering multiple factors, including but not limited to the source of raw materials and the place where processing procedures are completed. For example, recent media reports mentioned a case involving an export company although most of the materials for its clothing production were purchased domestically, key components were provided by foreign suppliers, ultimately failing to meet the origin standards and being refused certification. When applying for an origin certificate, enterprises must strictly follow regulations in preparing documents and ensure all processes comply with requirements.

Secondly, some small and medium-sized enterprises mistakenly believe that the CO certificate is just a formal document and lack sufficient awareness of its importance. In fact, the CO certificate is not only a key credential for enjoying preferential tariff treatments but also an important guarantee for maintaining international reputation. In recent years, with the advancement of the Belt and Road Initiative, more Chinese companies are participating in the global value chain. Against this backdrop, any negligence leading to disputes over origin could damage corporate image and bring legal risks. For instance, last year, a well-known home appliance brand lost orders and faced enormous compensation pressure due to complaints from overseas customers after failing to timely update the origin information of its exported products. This highlights the need for enterprises to attach great importance to the management and maintenance of CO certificates.

Finally, some operators take chances and believe they can bypass cumbersome certification procedures by forging or tampering with documents. However, such actions not only violate laws and regulations but also result in serious consequences for businesses. In recent years, domestic and international regulatory authorities have intensified efforts to crack down on false declarations. Statistics show that in 2025 alone, China Customs investigated dozens of cases involving fraudulent activities related to origins. Once verified, involved enterprises face hefty fines or even criminal liability. It is recommended that each enterprise establish a sound internal review mechanism to ensure all submitted documents to customs are authentic and accurate.

In summary, correctly understanding and utilizing the CO certificate plays an important role in promoting foreign trade development. To avoid falling into the aforementioned pitfalls, enterprises should strengthen learning about relevant policies and regulations, actively participate in professional training, and maintain communication and cooperation with professional institutions. Only then can they gain an advantageous position in fierce market competition and achieve sustainable development goals. In the future, with the popularization of digital technology applications, it is believed that the process of handling CO certificates will become more convenient and efficient, creating more value for enterprises.