ICO certificates of
origin
ICO certificates of origin are issued for every
international shipment of coffee from producers to consumers (whether the
importing country is an ICO member or not), and are used to monitor the movement
of coffee worldwide. The forms contain details of identity, size, origin,
destination and time of shipment of the parcels in question. ICO certificates
were particularly important when ICO export quotas were in force as they were
also used to enforce the quota limits for individual exporting countries. The
certificates are now less important (and some consumer countries no longer
insist on them) but it is in the interest of exporting countries to comply with
ICO regulations on certificates of origin as they enable the ICO to monitor
coffee movements and produce accurate statistics on each country's exports.
Moreover, from 1 October
2002 all ICO exporting members are required to ensure that all coffee issued
with certificates of origin complies with the minimum quality standards
indicated by ICO resolution 407 (see 11, Coffee quality).
Preferential entry certificates: Countries that
levy duties or taxes on coffee imports sometimes grant duty exemptions to
certain exporting countries. Entitlement to remission of duty or tax is obtained
by submitting an official certificate of exemption (EUR1, GSP and others).
Individual sales contracts often state that an exemption certificate must be
provided where appropriate. This certificate must accompany the shipping
documents, failing which the buyer is entitled to deduct the duty difference
from the invoice and pay only the balance. The seller will be able to obtain
refund of the shortfall by submitting the required certificate retroactively but only if the buyer in turn is able to obtain
this within the applicable time limit from the authorities in the country of
importation. Sellers who are in doubt about whether such a certificate is
required should ask their local chamber of commerce or trade authority. Note
also that under ECC a buyer may stipulate a country of importation other than
that of the port of destination.
Insurance
certificates: Under a CIF contract the seller must provide
an insurance certificate, issued by a first-class insurance company, showing
that insurance has been effected in accordance with the terms of the sales
contract. The certificate must enable the buyer to claim any losses direct from
the insurance company. The certificate entitles the holder to the rights and
privileges of a known and stipulated master marine insurance policy that may
cover a number of shipments. The certificate therefore represents the policy and
is transferable with all its benefits by endorsement in the same manner as bills
of lading.
Other certificates: There are an
increasing number of other certificates available for special contractual
requirements. Some, such as weight and quality certificates, are supplied by
recognized public or private organizations in the country of origin, and have
various formats. Others, such as health, phytosanitary and non-radiation
certificates, are often supplied on application by government bodies, in a set
format prescribed by local law and regulations. The variety of formats available
for special purpose certificates is so great that it is not practical or useful
to discuss them here.
Shippers should be familiar with the format of local
certificates and should investigate their availability and cost before entering
into any contractual obligation; otherwise they may be unable to supply a
document at all or may require a price increase to cover costs.