What You Need to Know About a Certificate of Legality

What is a Certificate of Legality?

Certificates of legality enable potential customers to confirm that companies and brands with which they are dealing in those markets are registered (or at least in the process of being registered), and not operating illegally. Furthermore, certificates attest to the fact that trademarks have passed the preliminary feasibility examination tests: that there are no conflicting or identical registered word or device marks, and that the goods or services in question are not outside the scope of registrable goods and services .
They are specifically useful to applicants and assignees outside a country or those seeking clearance prior to applying. They are also useful to third parties, such as advertisers and traders, as they confirm the compliance of a trade mark or company with the relevant legal and regulatory requirements.

Key Features of a Certificate of Legality

A certificate of legality is a form of documentation that asserts compliance with industry standards from some governing body. Most commonly, it represents a declaration by an official testing agency that a particular product meets the requirements that are necessary prior to being licensed for sale on the market.
Depending on the type of certificate, the precise information contained in these documents can vary. In most cases, however, the following components will appear:
• Witness – The certificate will name a specific witness, frequently a government official, who oversaw the testing that was done.
• Subject Matter – Indicators of the general subject matter being certified will be provided, along with details about the specific components that were tested and certified.
• Testing Facility – Information about the facility where the testing was performed, including its name and address, will typically be provided.
• Date(s) of Testing – In order to provide a legal trail, the specific date or dates on which the testing was performed will be included.
• Testing Agency – The name and contact information of the agency performing the testing will be listed. In the case of a government testing facility, there will also generally be a federal identification number included here.
• Owner and Proprietor – The certificate will generally include the names of both the owner and the proprietor of the product under consideration. The basic business structure of the organization is also likely to be included.
• Certification Statement – Statements regarding compliance with the necessary standards will usually be included in some type of certification language on the document itself.
• Applicable Standards – The standards that have been complied with will be listed. Examples include DOT, FDA and TM.

Industries That Are Dependent on Certificates of Legality

A wide spectrum of industries make frequent use of certificates of legality. These include construction, manufacturing, and environmental services among many more. A number of vocations need to ensure the validity of all licenses and permits before starting a project or working with a new supplier or subcontractor.
In the construction industry, for example, workers are typically required to be licensed to legally operate equipment even the most basic of types. Excavators, backhoes, and bulldozers, for instance, require licensing. Those who have received adequate training, education, and demonstrated understanding of all safety practices regarding licensing can obtain a license and work on any construction site. Raw materials companies such as concrete and asphalt producers, or builders and suppliers of scaffolding, safety equipment, and silos, rely on the use of certificates of legality of suppliers, vendors, subcontractors, and workers for their safety and economic security.
The manufacturing industry also relies upon certificates of legality. While certifications, training, education, and licensing requirements vary among the fields of manufacturing, some types require that workers meet translator set qualification standards. Such standards vary from one state to another and one industry to the next. Because construction, assembly, and other kinds of labor involved in manufacturing can be potentially hazardous, it is essential that suppliers, subcontractors, and workers demonstrate proof that they fulfill the necessary requirements for the type of labor they do.
Another critical industry is environmental service and waste management. In order to obtain or renew licenses, permits, and registrations, many companies in this field must demonstrate that they have all of the proper licenses in place before they can continue. In some cases, these licenses involve their being submitted to multiple state agencies with differing requirements. This is particularly true for those organizations regulated on both the federal and state levels.

How to Acquire a Certificate of Legality

To obtain a certificate of legality, a claimant must be the successor-in-title to the original owner of the protected heritage site and must establish that it has legal entitlement to the site. This involves a lengthy process, including obtaining a preliminary ruling from the relevant Administrative Court, advising the provincial heritage resources authority (PHRA) as well as setting a timeline for further action. In certain circumstances the PHRA must also issue a certificate of authenticity in order for a certificate of legality to be issued. The issuer of a certificate is then required to advise the PHRA that a certificate of legality has been issued.
Once these steps have been completed, the issue of a certificate of legality ripens and the property falls outside the provisions of the NBA. However, if such certificate is issued in respect of a State or local authority property, certain processes must still be followed: (i) notification by the Minister to the President; and (ii) a concurrence being given by the head of the national department responsible for the portfolio where the property is situated.
The amended NBA has expanded on the existing provisions relating to the issuing thereof. Where the related heritage resources have already been declared, the procedures entailed in declarations must be followed. In the absence of such declaration, a process as set out in section 34(4) must be followed. In these circumstances, a claimant must make an application to the National Heritage Resources Agency, who must then determine whether a substantive investigation into the matter is necessary. If so, such investigation must be instituted. However, the non-functioning of the Agency does not frustrate such process.

Typical Issues and How to Resolve Them

Obtaining a certificate of legality can be a complex process fraught with unforeseen challenges. Common pitfalls include inaccurate or incomplete information provided to the services of legalisation and not being aware of the timelines for each step of the legalisation process. Not all certificates are processed at the same speed or in the same manner and some require additional documentation. Administration costs and fees vary greatly between services and jurisdictions. We recommend starting the process sooner rather than later , and also ensuring that your service of legalisation has a clear understanding of the requirements of the final receiving jurisdiction. The situation is further complicated by the fact that the majority of consular fees are non-refundable, which means that should the certificate of legality fail to clear the next level in the chain, the costs are borne by your business.

How Certificates Affect Business Operations

For providers of goods or services, possessing a certificate is an assertion that they are legal to operate. Most suppliers would rather not have their customers question their legal competence to operate. Unfortunately, some suppliers do not care about the law and do not operate legally. Legal suppliers thus benefit from possessing a certificate because it can help to dispel any customer doubts about their operations. A good example of this is in the transport industry, particularly in road freight. Road operators must be licensed to operate to be legal, but also must be certified as having their vehicles regularly inspected and a certain standard of maintenance set by the regulator. They can only carry a certain amount of freight per load and must obey all regulations. These regulations help to protect the consumer from fraud (e.g. not being able to trust that a good has been carried with care) and helps to protect the industry against impact from rogue illegal operators who would otherwise undercut prices.
For regulatory bodies, there is no point issuing a certificate that isn’t actually reciprocated by some sort of investigation into the capacity of the applicant to meet the legal and industry requirements that it should. In Australia, agencies such as ASIC and state governments issue certificates to applicants that make representations about their ability to operate. In many cases, there have been investigations into their ability to operate properly (noting the word "properly" is used here), before a certificate is issued. Regulators can safeguard the interested of the industry and consumers by reviewing basic operation standards and ensuring that law and industry requirements are met.
In summary, it is important that law firms understand why their clients need certificates, as well as the positive and negative effects that they may have on trade, industry and business.

The Future of Legal Certificates

As the legal industry continues to grapple with the challenges presented by increasing globalization, technological change, and evolving regulatory environments, the future of certificates of legality remains a critical area of discussion. These certificates are designed to assure regulators and stakeholders that the certifying party has satisfied particular legal or regulatory standards related to the exportation of goods or technology. With the emergence of new trade agreements, such as the United States-Mexico-Canada Agreement (USMCA) and the growing presence of multilateral frameworks like the new EU Regulation on a framework for screening foreign direct investments, certificates of legality are set to play an increasingly important role in furthering trade and investment.
Technological advancements are also changing the landscape for certificates of legality. The potential for technology-enabled supply chain transparency is significant as more and more products are made with materials from multiple countries or even multiple suppliers within the same country . Emerging trends such as artificial intelligence, distributed ledger technology (DLT) and the Internet of Things (IoT) promise to offer new ways of tracking products throughout their lifecycle. But the current regulatory framework for the certificate of legality is starkly paper-based and it remains to be seen how the legal framework will evolve with these new technologies.
Standardization among certificate of legality regimes may also influence the future role of the certificate in corporate compliance programs. While the certificate was once a staple of compliance oversight, it is becoming less central over time. If certificate of legality requirements become more standardized among jurisdictions, it is possible that they could help reduce the overall cost of corporate compliance and facilitate consistency across businesses. However, as more and more jurisdictions adopt "know your customer" regimes and increasingly overlap with the certificate of legality, the latter may increasingly serve as an alternative to these regimes, rather than a necessary complement.