Things You Should Know When Receiving A Quote For International Shipments

Certificate of Origin – Some destinations require a Certificate of Origin (CO) for certain commodities.  The purpose of the CO is to authenticate the country of origin of the merchandise being shipped.  The CO may be required because of established Treaty arrangements, varying duty rates, and preferential duty treatment dependent on the shipment’s origin.  The CO verifies the country in which the goods were manufactured.  The commodity being exported and its destination determine if the CO is required.

Note: The rules for when a CO is needed change often.  Please be sure to verify the current criteria requiring a CO before sending your shipment.

Legalization – Documents issued in one country which need to be used in another country must be ‘authenticated’ or ‘legalized’ before they can be recognized as valid in the foreign country.  This is a process in which various seals are placed on the document.

Countries Requiring Certificate of Origin (CO) and Legalization

DDU – Delivered Duty Unpaid – This means that the seller delivers the goods to the buyer to the named place of destination.  The goods are cleared for import but, duty and tax are not paid.

DDP – Delivered Duty Paid – This means the seller pays for all transportation costs and pays the duty and tax.

Duty – This is basically a processing fee that customs charges that is based on the value of the goods being shipped.

Customs Clearance – A Customs Broker prepares and files the necessary Customs entries, arranges for the payment of any duties found due, and takes steps to affect the release of the goods in Customs custody on behalf of a client.

Tax – A tax is a fee based on the value of the goods that is charged by the destination countries government.