Copies of certificates of origin can continue to be submitted in any form this is "burying money"
Certificates of origin are crucial in international trade. They serve as proof of the country of origin for goods, often affecting customs duties, quotas, and other trade preferences. However, the current practice of submitting copies of these documents in various formats raises many concerns. Many experts consider this practice to be an inefficient use of resources—commonly referred to as "burying money."
Problems with Submission Formats
Currently, companies can submit copies of certificates in any form, ranging from paper versions to scans or electronic documents. This flexibility leads to several issues:
Difficulty in Authenticity Verification:
Customs authorities and regulatory bodies face challenges in verifying the authenticity of copies. Scans and photocopies can be easily falsified, increasing the risk of fraud.
Increased Processing Time:
Different formats of copies require different verification methods, which prolongs the overall document processing time.
Additional Costs for Businesses:
Companies are forced to spend resources on creating and sending copies in various formats, especially when the submission of paper originals is required.
Why Is This “Burying Money”?
Maintaining a system that allows the submission of certificate copies in any format leads to unnecessary expenses:
Administrative Costs:
Customs authorities must allocate resources to check and process diverse document formats, increasing budget expenditures.
Business Costs:
Businesses incur expenses to create and transfer copies, which could be reduced through process standardization.
Time Losses:
Delays in document processing negatively impact delivery speed and business operations.
Solutions to the Problem
To address this issue, the following steps are necessary:
Introduction of Standardized Formats:
Establishing a single electronic format for certificate submission, such as XML, digitally signed PDFs, or another format that ensures convenience and security.
Development of Electronic Systems:
Implementing a unified digital platform for submitting and verifying certificates. Such systems are already successfully used in some countries, improving the efficiency of trade operations.
Building Trust in Electronic Documents:
It is essential to conduct awareness campaigns among businesses and government agencies to increase trust in electronic certificates and reduce reliance on paper copies.
By adopting standardized electronic formats and modernizing the submission process, unnecessary costs and delays can be minimized, fostering a more efficient and competitive international trade environment.