Preferential vs Non-Preferential Certificate of Origin

A certificate of origin states the country where your goods were made or substantially processed. Buyers, banks and customs offices abroad ask for it, but they do not always ask for the same kind. Picking the wrong type is a common reason exporters lose a duty benefit they were entitled to.

Non-preferential certificate of origin

This is the general-purpose certificate. It simply certifies that the goods originate in India. Importing countries use it for statistics, for applying quotas or anti-dumping duties, and because many letters of credit ask for it. It does not give you any duty concession. It is issued by designated agencies such as chambers of commerce and export promotion councils, and the application is made through DGFT’s common digital platform.

Preferential certificate of origin

A preferential certificate is tied to a trade agreement, such as the India-UAE CEPA or the ASEAN agreement. It lets the importer claim a reduced or zero rate of customs duty in the partner country. To get it, your product has to meet the origin rules written into that specific agreement, for example a minimum share of local value addition or a change in tariff heading between the inputs and the finished product. Each agreement has its own rules, its own certificate format and its own list of issuing authorities, so you cannot reuse one agreement’s rules for another.

Which one do you need?

Ask your buyer two questions. First, are they expecting to claim a duty concession under a trade agreement? If yes, you need the preferential certificate for that agreement. Second, does the letter of credit or the importer’s customs office ask for a general origin document only? Then the non-preferential one is enough. When in doubt, check the agreement text and the HS code of your product before you apply.

Common mistakes

Exporters often apply for the general certificate when the buyer needed a preferential one, and find out only when the duty bill arrives. Others do not keep the cost sheets and supplier invoices that prove the origin criteria, which makes a later verification difficult. Keep these records for each shipment.

How we can help

You need an Import Export Code first, so see import export registration if you do not have one. Our certificate of origin service covers the application, and exporters joining a trade body can look at FIEO registration. More topics are in our export, import and trade bodies section.