No. 06/2010
“Certified” versus “Legalized” –
What is the difference?
Owing to the conditions of a letter of credit, documents such as the commercial invoice or the certificate of origin, for example, often need certification by
an institution (for example the Chamber of Commerce) and an additional
legalization by an embassy or a consulate.
If the letter of credit in this connection does not set forth further conditions
with regard to the form of this certification or legalization, then in both cases
any signature, a mark, a stamp or even a label on the respective document
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will suffice, whereby this condition of a letter of credit would appear to be
fulfilled.
However there are serious differences between certification and legalization.
Certification
The certification confirms defined characteristics or traits of an object or a
service.
If, for example, a letter of credit demands presentation of a “certificate of
origin, certified by chamber of commerce”, the Chamber of Commerce must
confirm the origin of the goods. During the document check the extent of the
certification (for example checking of the contents of the document or only a
verification of the signature on the document concerned) is insignificant.
Please be aware that in the German language, the english term “certified” can
be translated in different ways: It can be understood as just the confirmation
of the authenticity of a signature on a document. Or, even more, it can be
regarded as a verification of the content of a document.
No. 06/2010
Legalization
Often the conditions of the letter of credit go a step further, in that they
demand a “certificate of origin, certified by chamber of commerce, legalized
by embassy or consulate or any other authority of country xyz”.
This legalization confirms the authenticity of a foreign certificate by the
consular officer of the country in which the certificate is to be used. It is a
formal act: This procedure validates a document, issued in a certain country
(“source country”) and can thus be accepted by the authorities and law courts
of another country (“destination country”). In the aforementioned example of
the certificate of origin the legalization refers to the verification of the signature affixed by the Chamber of Commerce, that is to say the authenticity of the
certificate.
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The legalization is not always carried out in the English language, but often in
the language of the respective country, or in the respective lettering (for
example Cyrillic, Arabic). This is also acceptable if it is not the same language
as on the letter of credit.
The provision of the words “certified” or “legalized” on the certified and/or
legalized document is not obligatory.
If you have any further questions on this topic, please, get in touch with the
Cash Management and International Business specialists at Commerzbank,
who will be happy to assist you.
The information in this newsletter is generally based on usage and legal requirements in Germany and is subject to data obtained
from sources considered to be reliable, but no representations or warranties are made by Commerzbank with regard to the accuracy
or completeness of the data. The opinions and estimates contained herein have been done with due care and diligence and are true
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