Is “EC” an Acceptable Origin on a Certificate of Origin?

A reader recently raised an interesting question concerning a Certificate of Origin that indicated the origin of the goods simply as “EC”.

The credit required the presentation of a Certificate of Origin but did not specify any particular country of origin or geographical place. The question was whether a Certificate of Origin stating only “EC” would satisfy the documentary requirement.

Let’s examine the issue.

Question

Dear Mr. Old Man,

Hope you are well.

I would appreciate your expert opinion on the following scenario.

An LC requires the presentation of a Certificate of Origin. However, the LC does not specify any country of origin or geographical place.

The Certificate of Origin presented indicates the origin of the goods as “EC” without any further explanation or expansion.

In this case, can we consider the goods to originate from the European Community and accept the document?

Please advise.

Regards,
Priya

______

Answer

Dear Priya,

According to paragraph L1 of ISBP 821, when a credit requires the presentation of a certificate of origin, the requirement is satisfied by the presentation of a signed document that appears to relate to the invoiced goods and certifies their origin.

In the case described, the credit does not stipulate any specific country or geographical place of origin. Therefore, the certificate of origin may indicate any origin of the goods.

Where goods originate from production activities carried out in two or more EU Member States, it is common practice for the certificate of origin to state “European Community” rather than identifying a specific country. Accordingly, the abbreviation “EC” may reasonably be understood as referring to the European Community, provided the document otherwise appears authentic and compliant.

Since the credit does not require a specific country of origin, and the certificate certifies the origin as EC (European Community), the document fulfills the LC requirement.

Conclusion

The Certificate of Origin is acceptable and should not be considered discrepant solely because it states “EC” instead of naming a specific country.

Best regards,

Mr. Old Man