1. The document
The certificate of origin states where the goods were produced.
It is issued by an authority in the exporting country and accepted by the importing authority.
2. Two kinds
Preferential
Issued under a specific trade agreement. Carries an origin criterion. Supports a preferential rate.
Non-preferential
States origin for purposes other than preferential treatment: quotas, anti-dumping, labelling, statistics, procurement.
3. The overlap that causes errors
Both are certificates of origin, both are issued by the same authorities, and both have the same fields.
Only the preferential one supports a preferential rate claim.
4. The purposes of the non-preferential certificate
Marking requirements, where the destination requires origin marking.
Quota administration.
Anti-dumping and countervailing duty scope, where a product is origin-specific.
Government procurement eligibility.
Statistical reporting.
5. A scenario
An exporter issued non-preferential certificates for years to a market where the certificate was required for marking purposes.
It then began supplying an FTA partner and re-used the same process.
The certificate carried no origin criterion, and the preferential rate was refused.
6. The check
Two questions per shipment: is a certificate required, and is it for preference.
7. Closing view
The certificate is one document with two lives.
Confusing them is a rate question, not a paperwork question.
*This article is based on Chinese certificate of origin practice and the rules of China’s free trade agreements.*