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Claims for preferential duty treatment under an FTA must be backed up by a
preferential certificate of origin. A certificate is provided by the exporter to
attest to where the item was grown or manufactured and that it is eligible for a
preferential treatment under the respective trade agreement. Manufacturers must
undergo a complex qualification process to determine origin.
While certificates are generally
valid for a period of time, they may also be subject to revisions and
amendments. For example, if a company sources a product from a different country, it would have to update its certificate of origin.
For an exporter handling thousands
of products, managing certificates of origin, and their expirations, renewals and
revisions is nearly impossible without automation. It is no wonder that so many
perceive FTAs as being more trouble than they are worth.
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