In 2022, the WCO Secretariat conducted a survey among WCO Members to understand origin-related procedures in the context of digitalization. Eighty-four Customs administrations responded to the survey, whose findings were presented in the Study on the Digitalization of the Certificate of Origin, first published in December 2023 and updated in June 2024.
One of the practices addressed in the study was the establishment of a mechanism between parties to an FTA/PTA to exchange electronic data on proof of origin for goods being imported into, or exported from, their respective countries under a preference claim. Such mechanisms mean that parties no longer have to check the authenticity of scanned copies of documentary proof of origin furnished by parties and authorities located in another jurisdiction (exporting country), and that the authenticity check is done in “real” time, when the Customs declaration is submitted.
A total of 22 of the Customs administrations which responded to the survey indicated that they had set up such an IT system, and nine others that they were developing one. They exchanged two types of proof of origin: the certificate of origin (CO) and the declaration of origin (DO). However, most of practices focused on the exchange of CO data, with only a few on the exchange data of self-declarations of origin.
With a view to facilitating the establishment of smoother and more efficient exchanges of information related to the CO, the WCO decided in September 2023 to launch a project to develop an interconnectivity framework for the certificate of origin. An Informal Working Group (IWG), bringing together the interested Members of the Technical Committee on Rules of Origin (TCRO), was created to study the process related to the exchange of structured CO data between exporting and importing countries.
The Group used the WCO Globally Networked Customs (GNC) methodology to examine a set of elements on which to agree for ensuring system interconnectivity, these being: a legal framework, a business process model, a dataset for the e-CO and technical interoperability. The objective was to develop standards for each element and bring them together under an Interconnectivity Framework which would provide partners with a standardized approach for enabling the exchange of CO data under bilateral or multilateral FTAs, and a guide for the development of a technological solution for CO interconnectivity between parties.
During the first phase of the project, the IWG focused on analysing business process models (BPMs) and reviewing the dataset for the e-CO which had been developed as part of the WCO Data Model (WCO DM).
Two models for the exchange of CO data were examined, namely, the Push Model and the Pull Model. In the Push Model, after the CO is issued, the exporting country’s authority transfers the CO data to the importing country’s authority. This allows the importing country to receive the CO data almost in real time and in advance of the claiming of the origin-based treatment process (i.e. import clearance). In contrast, the Pull Model requires that the importing country’s authority initiate access to the CO data from the exporting country’s outbound gateway, normally during the claiming of the origin-based treatment. Currently, most data exchanges for the CO are implemented using the Push Model, and the IWG did not observe any fully automated Pull Model practice in use.
The IWG decided to focus its work on the Push Model for the CO. The results of its work were finalized in June 2024 in the Study on the Interconnectivity Framework for the Certificates of Origin. The study analyses the following elements: the entities involved, business process flow, data exchange sequence, triggers (the events and the timing of when data exchange takes place), business rules and data cluster. Detailed explanations of the Push Model for the CO business process and a list of corresponding actions are presented in an annex to the study. Some of these actions are recommended practice deemed essential for the implementation of CO interconnectivity, while others are good practice that could be omitted without impacting the system, but whose implementation will bring additional benefits for the overall data exchange process.
Another annex looks at data elements to be exchanged as part of the Push Model for the CO. The WCO has developed a Derived Information Package (DIP) for the CO as part of the WCO Data Model. The IWG reviewed the DIP and found that all data elements in the DIP for the CO dataset were utilized by one or more Members, and proposed that 37 new data elements be added to it. Data Maintenance Requests are currently being prepared accordingly.
Although they are not addressed as the main part of the project, business process models for the “Semi-Automated Pull Model for Certificate of Origin” and the “Push Model for Self-Declaration of Origin” are described in additional annexes.
During the second phase of the project, the IWG will focus on developing the legal framework and compliance, as well as the technological requirements and specifications of the Push Model for the CO. The project is expected to be completed by the end of 2024, so as to allow the results to be presented to the 43rd Session of the TCRO in February 2025 for discussion, and then to the Permanent Technical Committee and the Council for approval.
A Global Forum on Origin Interconnectivity is planned to be held in person at WCO Headquarters in Brussels on 3 and 4 February 2025. This public event will provide a global platform to engage with relevant partners, to share the project results and to facilitate future implementation of CO interconnectivity.
More information
Study on the Interconnectivity Framework for the Certificates of Origin
origin@wcoomd.org
