Trade Strategy Understanding from Certificate of Origin and Reciprocal Tariffs
Updated: July 2025, 9
Every day, news reports are coming in about President Trump's imposition of "reciprocal tariffs."
The tariffs will be imposed on countries and regions with large trade deficits, which is expected to affect a wide range of domestic industries.
We will discuss in detail tariffs and certificate of origin, which are expected to have major developments in the future.
First of all, what are "tariffs" and "reciprocal tariffs"?
What is Customs Duty?A tax imposed on goods imported from abroad to protect domestic industries, secure tax revenue, and adjust the trade balance..
Customs duty rates and applicable conditions vary depending on the item, its value and its country of origin.
In other words, clarifying "in which country a product is produced" is key to determining trade risks and costs.
On the other hand, reciprocal tariffs are a keyword coined by President Trump and refer to the idea of "demanding tariffs on other countries at the same rate that the United States imposes on them."
For example, the logic is that if Japan imposes a 10% tariff on American products, then the United States should also impose a 10% tariff on Japanese products.
The United States is restructuring its tariff negotiations with multiple countries, shifting the focus to trade transparency and equality.
Benefits of using a Certificate of Origin
One effective way to prepare for the risk of a sudden increase in tariff rates is to use a "Certificate of Origin."
A Certificate of Origin is a document that states that a productOfficial document certifying the country of origin.
There are great benefits to using a Certificate of Origin.
The following are some specific examples.
1. Reduction of tariff costs (by applying FTA/EPA)
By utilizing a Certificate of Origin based on an FTA (Free Trade Agreement) or EPA (Economic Partnership Agreement), tariffs in the export country may be zero or significantly reduced.
<< Example >>
- Exporting Japanese-made industrial parts to Thailand → Usually 5% tariff → Reduced to 0% if a certificate of origin is submitted
- In the case of exports worth 1,000 million yen per year,Cost reduction of 50 yenDirectly connected to
2. Avoiding trouble in high tariff countries (preventing confusion with products from specific countries)
Under the Trump administration and other administrations, there is a possibility that additional tariffs against specific countries will be introduced around the world.
Being able to prove "where it was made" is very important.
<< Example >>
Products that may be mistaken for being made in China (similar materials or appearance) → Avoid additional tariffs by clearly indicating that they are made in Japan on the Certificate of Origin
3. Facilitating customs clearance and strengthening trust with importers
The Certificate of Origin is used for customs clearance in the importing country.Prevent import delays due to incomplete documents or pending confirmationIt is also effective for
<< Example >>
- This will make customs inspections smoother, helping importers manage their inventory and meet delivery deadlines.
- This will also lead to increased trust with long-term business partners and an increase in repeat order rates.
4. Strengthening price competitiveness with other countries
Whether or not there is customs duty,Directly linked to sales priceTaking advantage of tariff exemptions can help you enter the market at a better price than your competitors in other countries.
<< Example >>
- Can be sold with 0% tariff → Can be offered at a price 5-10% cheaper than comparable products
- Increased selection rate from local buyers
For inquiries regarding specific certificates of origin, please contact Support Administrative Scriveners Corporation.
Our Support Administrative Scriveners Corporation has supported the procedures for obtaining Certificates of Origin for a wide range of export products, from large machinery to food and chemical products.
Based on our experience, we can assist you in obtaining the complex certificate of origin.
If you have any problems, please contact us using the information below.
(Author: Sho Ishikura)
