Certificate of Origin (COO) Purpose & Types (GSP Form A, REX, Non-Preferential)
Lesson Contents Overview
Learning Objectives
Comprehensive Technical GuidanceTextbook & Training SOP
1. The Global Tariff Architecture
In international commerce, customs duties vary dramatically depending on where goods originate:
- Standard Most-Favored-Nation (MFN) Duty on apparel in the EU is 12%.
- Standard MFN Duty on apparel in Japan is 9% to 11%.
- Standard MFN Duty on apparel in Canada is 17% to 18%.
Under Generalized System of Preferences (GSP) and Duty-Free Quota-Free (DFQF) agreements, goods originating from Bangladesh enter these major markets with 0% Customs Duty, giving Bangladesh garment factories a massive competitive advantage.
The Certificate of Origin (COO) is the legal instrument proving entitlement to these zero-duty benefits.
2. The 3 Main COO Categories
[ CERTIFICATE OF ORIGIN (COO) CLASSIFICATION ]
│
┌───────────────┼────────────────┐
▼ ▼ ▼
[ EU / UK REX ] [ GSP FORM A ] [ NON-PREFERENTIAL ]
- European Union - Japan, Canada - United States, GCC
- United Kingdom - Switzerland - Latin America
- Self-Certified - Issued by EPB - Issued by Chambers
- Printed on Inv - Physical Paper - Physical Certificate3. The REX Origin Declaration Text
For all export shipments to the EU exceeding €6,000 EUR, the invoice must carry this exact wording:
"The exporter of the products covered by this document (customs authorization No. BDREX[YourNumber]) declares that, except where otherwise clearly indicated, these products are of Bangladesh preferential origin under European Union Generalized System of Preferences."
Place and Date: Dhaka, Bangladesh — [Date]
Name and Title of Signatory: [Name], Authorized Commercial Signatory
Signature: [Blue-Ink Signature & Factory Stamp]
Major Certificate of Origin (COO) Types & Target Markets
| COO Type / System | Governing Trade Scheme | Target Destination Countries | Issuing / Self-Certifying Authority |
|---|---|---|---|
| EU REX Statement | Everything But Arms (EBA) / GSP | European Union (27 Nations) | Self-Certified by REX Registered Exporter |
| UK Origin Declaration | Developing Countries Trading Scheme (DCTS) | United Kingdom | Self-Certified Exporter Statement |
| GSP Form A | Generalized System of Preferences | Japan, Canada, Norway, Switzerland | Export Promotion Bureau (EPB) |
| SAFTA / APTA COO | Regional Trade Agreements | India, China, Sri Lanka, South Korea | Export Promotion Bureau (EPB) |
| Non-Preferential COO | General World Trade Organization (WTO) | United States, Middle East, Latin America | Chamber of Commerce (DCCI / FBCCI) |
Practical Commercial Flow
Factory holds registered REX Number #BDREX12345678. Commercial Executive prints the statutory origin statement on the Commercial Invoice body: "The exporter of the products covered by this document (customs authorization No. BDREX12345678) declares that, except where otherwise clearly indicated, these products are of Bangladesh preferential origin under EU GSP." The French buyer clears the shipment with 0% import duty in Le Havre.
Factory Real-Life Scenario
Scenario: A shipment to Japan was assessed standard 10% duty because the factory presented a Chamber of Commerce general COO instead of an official EPB GSP Form A certificate.
Solution: Commercial team urgently secured an official retrospective GSP Form A from the Export Promotion Bureau and couriered it to Tokyo Customs before final duty assessment.
Impact: Saved the Japanese buyer $12,000 in import duties and preserved client trust.
Commercial Officer Best Practice
Always verify whether the importing country accepts electronic REX self-certification or requires a physical paper GSP Form A stamped by the Export Promotion Bureau.
Top Beginner Mistakes to Avoid
- Using an expired REX registration number on export invoices to the European Union.
- Submitting a non-preferential Chamber COO for shipments bound for Canada or Japan.
Important Commercial & Trade Terminology (2 Terms)
Registered Exporter System — an EU certification system where registered exporters self-certify preferential origin on commercial invoices.
💡 Note: Replaced GSP Form A in the EU.A reduced or zero customs duty rate granted to imports from developing countries under international trade schemes.
💡 Note: 0% duty in EU, UK, Canada, Japan.Interview Preparation Questions & Answers (2 Questions)
Master these high-frequency interview questions for Commercial Officer, Merchandising, and Export Executive roles.
A Preferential COO (e.g., GSP Form A, EU REX statement) certifies that goods meet specific Rules of Origin under a trade agreement, qualifying them for zero or reduced import duties. A Non-Preferential COO certifies the country of manufacture for standard customs statistical and regulatory purposes without granting duty exemptions.
Frequently Asked Questions (1 FAQs)
Clear, beginner-friendly answers to the most common questions about the Commercial Department.
Key Takeaways & Summary Points
Executive Lesson Summary
Understanding the distinction between preferential and non-preferential origin systems guarantees zero-duty market access for buyers and eliminates import tariff barriers.
Lesson Downloads & SOP Templates
CBM and Container Loading: A Guide for Garment Shipment Planning
Comprehensive industry standard guide.
Read GuideHS 6109.10.00
T-shirts, singlets and other vests, knitted or crocheted, of cotton
View HS Code