What is a Certificate of Origin and Certificate of Insurance
Exporting and Importing can often be an extremely complicated and mundane process as there are so many rules, regulations as well as countless number of procedures to adhere to. This, many a times, may require to prepare and submit documents for import and export. Usually, freight forwarders would prepare it for us, but it is also good to know for ourselves as to how to complete the relevant documents by understanding what the terms mean. As such, in our new article series titled “Export Terms”, we would introduce you to all the various terms used in the international trade, be it through air, land or sea freight. We would roll out one related article on a regular basis, which would help you to get a comprehensive understanding as to the document preparation for the purpose of doing trade internationally. In this article, we would be covering in detail as to what is a Certificate of Origin and a Certificate of Insurance.
What is a Certificate of Origin
As it name suggests, the certificate of origin describes the country of origin for the shipment. The certificate of origin may also be known as a declaration of origin. Usually, the certificate issued by the chamber of commerce in the country of the exporter. In addition, the Certificate of origin is usually needed by countries that are a part of a trading bloc, where there is an organisation of countries that trade with each other with significantly reduced trade barriers. A certificate of origin for the shipment is also a good way to see if the products are really authentic in terms of where they claim to be coming from
What is a Certificate of Insurance
A Certificate of Insurance is provided by the insurance company for your shipments. This document mentions the insurance policy that is being bought for the shipment and includes all the key details as to the coverage of the insurance. Typically, the Certificate of Insurance is not a negotiable document and it also cannot be assigned to a third party. On the other hand, due to the nature of the Certificate of Insurance, it cannot be used in making claims and also under the terms of a letter of credit (L/C). A Certificate of Insurance merely shows that there is insurance coverage for the named shipment and for the purpose of setting out terms as well as claims, the full insurance policy is still needed.
All in all, the above mentioned essential documents are straightforward. The Certificate of Origin describes where the shipment is coming from while the Certificate of Insurance indicates that an insurance policy is covering the shipment and the key details of the policy are highlighted in the document.
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