Certificate of origin: what it is, what it's for and how much it saves you

Of all the documents in an import, the certificate of origin is the only one that can lower your taxes. It's not a mandatory requirement to import — it's a benefit: the paper that proves where your goods were made and that activates the tariff preferences of free trade agreements. And it's also the document most importers forget to request.

What it is (and isn't)

It's a document issued in the exporting country certifying that the goods are originating in that country under a trade agreement's rules. It's issued by an authorized body or chamber, or by the exporter itself when the agreement allows it (invoice declaration, approved exporter).

It is not the invoice, the packing list, or a "quality certificate". And note: you can import perfectly well without it — just paying the full duty.

What it's for: the concrete saving

Costa Rica has a broad network of free trade agreements. When your product qualifies and you present the certificate of origin, the import duty (DAI) is reduced according to the agreement's schedule — in many cases to 0%. And since VAT is calculated on a base that includes the duty, the saving compounds: less duty is also less VAT. The full mechanism is in import duties in Costa Rica.

Origin isn't the same as provenance

The most confusing point: the fact that goods ship from a country doesn't make them originating in that country. A product manufactured in China and resold by a German company isn't originating in the EU, and doesn't get the European agreement's preference. Each agreement defines its rules of origin: the product must be wholly obtained or sufficiently transformed in the partner country. Your supplier knows (or should know) whether its product qualifies.

One certificate per agreement

The format depends on the agreement under which you want the preference. The most relevant ones for Costa Rican importers:

• European Union (AACUE): EUR.1 movement certificate or invoice declaration. We explain it in depth in the agreement with the EU.
• China (CR–China FTA): the agreement's certificate of origin, issued by the authorized Chinese authorities.
• South Korea (CR–Korea FTA): certificate or declaration of origin under the agreement.
• United States (CAFTA-DR): a certification of origin, which the exporter, producer or even the importer may issue.
• Central America, Mexico, Panama and other partners: each agreement has its own form and mechanism.

* The exact requirements (who issues it, format, validity) vary by agreement and product. Confirm your case with your customs broker before shipment.

How to handle it in practice

• Request it on the purchase order, not when the cargo has already sailed. Retroactive issuance, when possible, adds paperwork and days.
• Check consistency: the certificate's description, quantities and data must match the commercial invoice and packing list exactly. Discrepancies are the #1 cause of a rejected preference.
• Keep it: customs can verify origin even after clearance; keep the originals as long as regulations require.
• Compare with and without preference: when evaluating suppliers from different countries, calculate the total cost with each origin's real duty — a cheaper FOB price can lose to an origin with an FTA.

Written by: Customer Service Department, VS Logistics S.A.