Certificate of Origin Markup Language COML Crimson Logic

Certificate of Origin Markup Language (COML) Crimson. Logic Presented by Suresh Kumar Kantholy Trade and Logistics 24 June 2004 All rights reserved. ‘Crimson. Logic’ and the Shell Device are trade marks of Crimson. Logic. Pte Ltd. All information contained in this presentation is disclosed to you on the basis of a prospective business relationship and is proprietary to Crimson. Logic Pte Ltd and may not be used, disclosed or reproduced without the prior written consent of Crimson. Logic. Copyright 2004 Private & Confidential 1

Agenda • Certificate of Origin (Co. O) Overview – What is Co. O? – Type of Co. O • Co. O Business Process – Workflow – Roles and Responsibility – Core Components • COML Methodology – – Conceptual Model Spreadsheet Model Schemas Implementation Model • Difficulties Faced Copyright 2004 Private & Confidential 2

Certificate of Origin (Co. O) Overview Copyright 2004 Private & Confidential 3

What is Co. O? • A document, required by foreign governments, declaring that goods in a particular international shipment are of a certain origin • A signed statement as to the country of origin of the exported products for a particular shipment Copyright 2004 Private & Confidential 4

Type of Co. O • Non-preferential CO – Used to distinguish foreign products from domestic products for the purpose of applying several other trade policy instruments, such as • anti-dumping and countervailing duties • safeguard measures • origin marking requirements • discriminatory quantitative restrictions or tariff quotas rules on government procurement Copyright 2004 Private & Confidential 5

Type of Co. O • Preferential CO – Employed in preferential trading arrangements (PTAs) and in the context of generalized systems of preferences (GSP) – Prevents trade deflection — to avoid products from non-preference receiving countries from being transshipped through a low-tariff PTA or GSP partner to a high-tariff one Copyright 2004 Private & Confidential 6

Co. O Business Process Copyright 2004 Private & Confidential 7

Workflow Copyright 2004 Private & Confidential 8

Roles and Responsibility • Authorized Organization (AO) – A government agency / approved association of businessmen to protect and promote business interests in the region. – An agreed entity that issues signatory certificates to organizations participating in this authorization system. – Validates all the CO information provided by Exporter against the supporting documents like Bill of Lading, Invoice, etc. , Copyright 2004 Private & Confidential 9

Roles and Responsibility • Banks (Inland) – Banks play important role in Letter of credit negotiations. Letter of credit is a letter addressed by a bank, at the insurance and responsibility of a buyer of merchandise, to a seller, authorizing him to draw drafts to a stipulated amount under specified terms and undertaking conditionally or unconditionally to provide eventual payment for drafts. Copyright 2004 Private & Confidential 10

Roles and Responsibility • Embassy (Inland) – An official office of the ambassador of the foreign country, serves as the primary channel of communication between the two governments, negotiates treaties, and promotes economic and cultural exchange between home country and host country. – Legalized CO documents. In real, some countries in the Middle East require Embassy endorsement, to restrict goods imported from the certain countries for political or other reasons. Copyright 2004 Private & Confidential 11

Roles and Responsibility • Insurance Firm – Insurance firms are financial institution that funds their investment activities from the sale of securities or insurance. – In some countries, insurance firms likely to verify the goods value based on the shipment listed in Certificate of origin, & may evaluate the insurance value quoted by the seller. Copyright 2004 Private & Confidential 12

Core Component • Application Reference – Identifies the document during and after the stage of application • Issuance Country – Source of which the Co. O is being certified • Prepared By Party – Person in-charge of filling-up the Co. O information • Buyer Party – Person import/purchases goods through the international purchase and supply chain • Seller Party – Person that exports; originator or wholesaler of exported goods Copyright 2004 Private & Confidential 13

Core Component • Signatory Party – Authorized declarant who sign on Co. O • Certificate of Origin Line – Describes the "commercial" information about the consignment between the Buyer and the Seller • Consignment Transport – Arrangement under which items are delivered by a consignor to a consignee to be resold or used and paid for by the consignee • AO Endorser Party – Body appointed by the government of a country who has the right to certify a Co. O • Document Routing – Specifies information related to the conveyance of Co. O Copyright 2004 Private & Confidential 14

Core Component • Supporting Document – Documents to support the verification process during endorsement by AO • Embassy Endorser Party – Embassy Officer who legalized Co. O • Insurance Endorser Party – Provide insurance to the shipment Copyright 2004 Private & Confidential 15

COML Methodology Copyright 2004 Private & Confidential 16

Conceptual Model Copyright 2004 Private & Confidential 17

Spreadsheet Model Copyright 2004 Private & Confidential 18

Schemas Copyright 2004 Private & Confidential 19

Implementation Model Copyright 2004 Private & Confidential 20

Difficulties Faced Copyright 2004 Private & Confidential 21

Difficulties Faced • UBLish v 1. 0 – UBLish does not include the document type for COApplication and COApplication. Response • Digital Signature? Copyright 2004 Private & Confidential 22

Thank You Copyright 2004 Private & Confidential 23