Registered Exporter system effective from 2017
11 January 2017 - The Registered Exporter system (in short, the REX system) is the new origin certification system of goods subject to the EU’s preferential trade agreements. It facilitates a simplified way to prove the origin of the goods, reducing the administrative burden for exporters. The REX system is first applied in the General System of Preferences (GSP).
Currently, the preferential origin of goods under the GSP arrangement is proven via a FORM-A certificate, which is issued / validated by the (local) competent authorities. When in possession of a FORM-A certificate, the importer into the EU is entitled to a lower (preferential) customs duty rate. The REX system replaces the current system with a self-certification scheme; it allows for a mere ‘statement on origin’ (SoO) by the exporter on the commercial invoice or any other commercial document. As a result, goods can be imported from designated developing countries with a self-issued SoO instead of a FORM-A. Besides the reduction of the administrative burden, this also speeds up the issuing process.
There are three starting dates for exporters to apply the REX system. The first one started on January 1, 2017. Once started, a transition period will apply, where the current system and the REX system will be operated in parallel. In order to apply the REX system, the exporter needs to fulfil certain requirements.
Customs duty savings
We advise internationally operating companies with multiple cross-border operations to review their supply chains and identify suppliers that may be affected by these changes. Efficient utilization of the REX system can lead to customs duty savings.
If you need to learn more about the REX system please contact Eline Polak, Partner VAT & Customs at Mazars, by e-mail or by phone +31 (0)88 277 23 25.
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Customs & International Trade
As a result of the rapidly increasing global trade, your company may be confronted with complex customs (and related) legislation. Is your company involved in international trade and are your goods moved across the globe? Then, adequate customs planning and knowledge of import- and export regulations is key to avoid unnecessary risks and costs.