Certificate of Origin – What You Need to Know for Customs Clearance
The export of agri-food products from Poland is increasing. According to the National Support Centre for Agriculture, “last year, entrepreneurs sold goods abroad worth a record value of over 51 billion euros, which is an increase of more than 8% compared to the previous year.” However, not all companies are yet fully equipped to handle the procedures. – The food industry must be fully aware of how to correctly determine the origin of the product to pass through any customs clearance smoothly. Incorrectly declaring the country of origin can result in legal and tax proceedings and, consequently, penalties imposed on the producer – comments Joanna Porath, owner of the customs agency AC Porath.
The share of agri-food exports in the total value of Polish exports increased from 13.8% in 2022 to over 14% in 2023, according to the National Support Centre for Agriculture report. Entrepreneurs must implement an origin policy to properly classify products before exporting them beyond the country’s borders. However, it’s important to remember that producing goods in the European Union does not always mean that the goods will qualify for tariff preferences.
Product Origin
Determining the country of origin of a product is based on customs regulations. According to these, the country of origin is the one in which the goods were completely obtained, for example: harvested, grown, born, hunted, or fished. If a food product is produced in more than one country, the origin must be determined by the country where the product underwent the last significant and economically justified processing or treatment.
– Let me give you a simple example: a yogurt producer. The milk is imported from Romania, but the yogurt is produced in Poland. In this case, a one-time or long-term declaration from the supplier is required, confirming that the milk originates from the EU, and detailing the processes it has undergone. Otherwise, the product will be classified as originating from a third country. For dairy products, all used semi-finished products must have a declared country of origin. For each product, there are specific rules regarding its origin, such as the production method or the percentage of ingredients used in creating the final product – explains Joanna Porath, owner of AC Porath.
A certificate of origin can be issued either for a specific product or for a batch of goods intended for export. Importantly, if the goods are shipped using several means of transport, a separate certificate of origin should be issued for each batch.
The National Chamber of Commerce issues the certificate of origin. To obtain it, an entrepreneur must provide a completed and signed form by an authorized company representative, along with an application for the certificate of origin. In addition, other documents confirming the origin of the goods are required, depending on the type of goods, the method, and the place of production.
– Only an exporting company registered in Poland and having its registered office in Poland can apply for a certificate of origin. The certificate of origin confirms that the goods originate from the European Union – adds Joanna Porath.
