Certificate Of Origin
The Certificate of Origin (CO) is a document to certify the place of growth, production or manufacture of goods. It is required when exporting to specific countries, when requested by the consignee for customs clearance, or when it’s stipulated in a letter of credit.
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The CO identifies goods and contains a certification by a government authority, or other empowered body, that the goods in question originate from a specific country. Certificates of Origin can be broadly classified into types, namely Preferential Certificates of Origin and Non-Preferential Certificates of Origin.
The issuance and acceptance of Certificates of Origin is governed by the International Convention on the Simplification and Harmonisation of Customs Procedures.
The criteria used in determining the origin of goods namely: Manufacturers, exporters or traders must be registered with Suruhanjaya Syarikat Malaysia (Companies Commission of Malaysia)
Products that are:
â–ª Manufactured in Malaysia and use 100% local content; or
â–ª Manufactured in Malaysia through a transformation process which changes the tariff code classification at six (6) digit level; or
â–ª Manufactured in Malaysia and contains at least 25% local content
Preferential Certificate of Origin (PCO)
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Preferential Certificate of Origin (PCO) is a document to prove the origin status of a product. It also acts as an import document to the customs of importing country in order for a product to enjoy tariff concession.
Preferential Certificate of Origin (PCO) is an important international trade document attesting that goods in a particular export shipment are wholly obtained, produced entirely, manufactured or processed in a particular country.
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A Preferential Certificate of Origin (PCO) allows your buyer to pay lower customs duty or total removal of customs duty when you export your goods under a Free Trade Agreement (FTA) or Scheme of Preferences
There are 14 concluded and implemented FTAs between Malaysia and other countries as listed below. Company may export using any of the FTAs below relevant to suit their business arrangement.
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o AFTA / ATIGA o ASEAN-China
o ASEAN Hong-Kong, China
o ASEAN-Rep. of Korea
o ASEAN-Japan
o ASEAN-India
o ASEAN-Australia-New Zealand
o Malaysia-Japan
o Malaysia-Pakistan
o Malaysia-New Zealand
o Malaysia-Chile
o Malaysia-India
o Malaysia-Australia
o Malaysia -Turkey
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Manufacturers / Exporters need to determine the origin of their products to enjoy tax reduction or elimination by presenting the Preferential Certificate of Origin (PCO) to the Importing Country. In Malaysia, all application must be made online through the Electronic Preferential Certificate of Origin (ePCO) System operated by DagangNet Technologies Sdn Bhd (DNT).
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The ePCO system is a web-based application and approval system. All attachments need to be uploaded online with no hardcopy documents to be sent to MITI. The system can be accessed at www.newepco.dagangnet.com.my
Other functions for the system include online enquiry of application status and to provide support and guidance for users. There are two modules available in the ePCO system, one of it is the Standard Module provided for the traders and manufacturers as to apply online Cost Analysis (CA) and Preferential Certificate of Origin (PCO). The other module is the Manufacturer Module specific for manufacturers who would like to assign their CA to other Traders (to be used for PCO Form application) without exposing their finished products' actual costs (which can be obtained from CA application).
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Non-Preferential Certificate of Origin (NPCO)
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A Non-Preferential Certificate of Origin (NPCO) is a trade document that helps to identify the origin of the good. It is a certificate/trade document that helps identify the origin of the good and not used to claim for preferential tariff rates. Normally goods will be released using import duty rate as per Customs Duties Order enforced.
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Document needed for application;
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Valid Business License from Local Authority (Majlis Perbandaran)
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SSM Company Profile
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Latest Audited Report / Management Account
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Company Profile
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List of Machinery and Function
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List of Raw Material, Quantity and Name of Supplier
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List of Product, Quantity and Name of Customer
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List of Manpower Divide into Management, Technical, Clerical, Admin and Factory Worker
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Factory Layout Plan
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Documents required (before exporting) - Packing List - Sales Invoice
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Documents required (after exporting) - Sales Invoice - Packing List - Bill of Landing - K2 For
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