Case Study: The Certificate of Origin Problem — When One Missing Document Stopped a £400,000 Delivery in Iraq

How a routine procurement turned into a three-week delay because the supplier didn’t understand Iraq’s documentation process.

Background

A private-sector purchaser in Iraq ordered specialised machinery from a European supplier.

The contract was straightforward:

• agreed price

• agreed shipment date

• agreed delivery deadline

• agreed incoterms

Both sides assumed the paperwork was “standard.”

The supplier shipped the goods with:

• Commercial Invoice

• Packing List

• Bill of Lading

But one critical document was missing:

A properly legalised Certificate of Origin (COO).

In most countries, a COO is a formality.

In Iraq?

It’s everything.

Without it, clearance simply does not proceed.

The Legal/Operational Issue

When the container reached Iraq, customs flagged the shipment immediately:

• The COO was missing

• The invoice didn’t match the format Iraq requires

• The packing list didn’t include weight breakdown per item

• No chamber-of-commerce stamp

• No embassy legalisation

The port authority refused to process the release.

The purchaser then:

• began incurring storage fees

• faced penalties from their own downstream client

• had personnel tied up in clearance attempts

Meanwhile, the supplier said:

“We don’t normally provide a Certificate of Origin — you didn’t explicitly request it.”

This is where the contract failed.

Why This Happens So Often

Foreign suppliers don’t understand that Iraq requires:

1. A Chamber-of-Commerce stamped Certificate of Origin

2. Legalisation by the Iraqi Embassy (in many cases)

3. Documentation that

   
   

   • matches word-for-word

   • includes exact HS codes

   • contains full itemisation

   • follows Iraqi import authority format

   
   

And because the supplier thinks this is “optional,” they don’t prepare it.

Buyers assume suppliers already know this.

They don’t.

CARMA Group’s Intervention

1. Document Diagnostics

We reviewed the entire document set and mapped the gaps:

• Missing COO

• Invoice mismatch

• Incorrect HS code

• No legalisation

• No conformity certificate reference

• Weight discrepancies between commercial invoice and packing list

This was a full compliance failure — not a minor typo.

2. Fixing the COO Problem

We coordinated directly with the supplier to:

• issue a corrected COO

• obtain Chamber of Commerce stamping

• arrange legalisation at the Iraqi Embassy

• match details exactly with invoice + packing list

• ensure HS codes aligned with Iraqi customs classification

This process alone took 5 days — but without it, nothing would move.

3. Correcting the Supporting Documents

We had the supplier reissue:

• a new Commercial Invoice

• a corrected Packing List with detailed weight

• conformity documentation

• serial number list

• manufacturing country evidence

We then ran everything through a pre-clearance check before resubmission.

4. Customs Coordination

On the Iraq side, we assisted the purchaser by:

• communicating with the clearance agent

• managing customs queries

• correcting document mismatches

• ensuring the system showed compliant data

• preventing additional demurrage fees

This avoided further delays.

Outcome

• Shipment cleared

• Client avoided further penalty charges

• Supplier understood the proper Iraqi documentation process

• New contractual templates adopted

• Future orders structured properly

• Both parties maintained commercial relationship

Most importantly:

A £400,000 shipment was released because the documentation was rebuilt from scratch.

Key Lessons

1. Iraq is documentation-driven — COO is not optional.

2. Foreign suppliers often don’t understand local clearance requirements.

3. Every document must match — line by line.

4. Legalisation (chamber + embassy) is often essential.

5. Contracts must define documentation responsibilities explicitly.

6. Buyers should never assume suppliers know Iraqi clearance rules.

7. Pre-clearance saves weeks of delays.

Bottom Line

CARMA Group helps clients prevent and resolve documentation failures — especially around Certificates of Origin — ensuring shipments clear Iraqi customs smoothly without penalties or operational disruption.