9911796707
TMI BlogREX for European Union – GSPCertificate of OriginX X X X Extracts X X X X X X X X Extracts X X X X ..... REX for European Union – GSPCertificate of Origin X X X X Extracts X X X X X X X X Extracts X X X X ..... nd it was introduced to replace the previous system of EUR.1 certificates and Form A certificates for GSP countries. European Union had introduced Self Certification Scheme for Certifying Rules of Origin under GSP (Generalised System of Preferences [EU-GSP] w.e.f. 01-01-2017, under Registered Exporter System (REX). A REX member can self-certify the Statement of Origin of their Goods to EU under the GSP Scheme. The system is given in Annexure 1 to Appendix C of FTP of GSP introduced vide DGFT Public Notice No. 51/2015-20 dated 30.12.2016. What is the REX System? The REX (Registered Exporter) System is a self-certification system that allows exporters from countries benefiting from the EU GSP to declare the origin of their goods for prefer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ential tariff treatment. Rather than relying on a specific certificate issued by the customs authorities (like EUR.1 or Form A), exporters in registered countries can simply make an origin declaration on their commercial invoices or other trade documents, provided they are registered with the customs authorities. Key Features of the REX System * Self-Certification: * In the REX system, exporters are responsible for certifying the origin of their products themselves. This is done through an origin declaration on invoices, packing lists, or other commercial documents. * Simplification: * The REX system simplifies the process by allowing exporters to avoid having to obtain specific certificates of origin (such as EUR.1 certificates) f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom customs authorities. Instead, they can provide an origin declaration themselves, streamlining the process and reducing administrative costs. * Registration: * Exporters must be registered with the customs authority in their country before they can issue origin declarations under the REX system. Registration is a one-time process, after which the exporter will be able to issue self-certifications for any future shipments. * Eligible Countries: * The REX system applies to countries that benefit from the EU's GSP, which includes both GSP (Generalized Scheme of Preferences) countries and GSP+ countries, as well as Everything But Arms (EBA) countries (LDCs). However, not all GSP beneficiary countries are required to use REX yet; it d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epends on the individual country's implementation timeline. * Origin Declaration: * Once registered, exporters can make a declaration of origin directly on the commercial invoice or packing list, stating that the product qualifies for preferential treatment under the GSP. The declaration can be in the following forms: * "The exporter of the products covered by this document declares that, except where otherwise clearly indicated, these products are of ... preferential origin". * Or a simpler statement directly on the commercial document, indicating the GSP scheme and the country of origin. * No Need for EUR.1 Forms: * Under the REX system, the need for a physical EUR.1 certificate or Form A certificate is eliminated. This reduce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s delays and costs associated with obtaining these certificates from the customs authorities. * Control and Auditing: * The customs authorities in the exporting country may conduct audits or checks to ensure compliance with the origin rules, which is important for maintaining the integrity of the system and preventing fraud. Who Needs to Register for REX? * Exporters: Any exporter wishing to benefit from the preferential tariffs under the EU's GSP must register with the customs authority in their country to use the REX system. Registration ensures that the exporter is authorized to issue origin declarations. * Customs Authorities: The customs authorities in each participating country are responsible for managing the REX system, reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... istering exporters, and ensuring compliance with the origin rules. Why is the REX System Important? * Simplifies the Process: * The REX system simplifies the certification process for exporters, reducing paperwork, administrative delays, and costs associated with obtaining certificates of origin. * Increased Trade: * By making it easier for exporters to prove the origin of their goods, the REX system encourages increased trade between developing countries and the European Union, as the barriers to entry (such as certification requirements) are reduced. * Transparency and Compliance: * It enhances transparency in trade by allowing customs authorities to monitor and track registered exporters, ensuring compliance with rules of or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igin under the GSP. * Efficiency: * The system allows for quicker clearance at customs, as the self-certification of origin can be done directly by the exporter and processed faster. How Does the REX System Work in Practice? * Step 1: Exporter Registration: * An exporter in a GSP or GSP+ beneficiary country must register with the customs authorities in their country. The registration process is typically done electronically. * Step 2: Origin Declaration: * Once registered, the exporter can issue an origin declaration directly on commercial invoices or other trade documents for goods they are exporting to the EU. * Step 3: Verification by EU Customs: * When the goods arrive in the EU, customs authorities may verify the origi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n using the information provided by the exporter. If the product is claimed to originate from a GSP country, the EU customs will apply the preferential tariff based on the self-certification made by the exporter. * Step 4: Audits and Compliance: * Exporters may be subject to audits by the customs authorities in their country or by EU authorities. If an exporter is found to be non-compliant with the rules of origin, they may be excluded from the REX system, and preferential treatment may be denied. GSP Rules of Origin and the REX System The rules of origin for GSP goods under the REX system ensure that only goods that have been sufficiently processed in the beneficiary country qualify for preferential tariffs. These rules typically req ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uire that a significant portion of the goods (typically 50-60% of the value or a substantial transformation) originates from the beneficiary country. The EU uses specific criteria, such as: * Wholly obtained goods: These include goods that are entirely produced in the country (e.g., agricultural products). * Sufficiently processed goods: Goods that undergo substantial transformation in the exporting country, like manufacturing or assembling, to meet the EU's origin criteria. Advantages of REX for Exporters and the EU * For Exporters: The REX system reduces the need for time-consuming and expensive paperwork, promotes ease of access to the EU market, and increases exporters' competitiveness. * For the EU: It helps ensure that go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods imported under preferential tariffs are genuinely originating from eligible countries, while also reducing administrative costs and improving trade efficiency. Conclusion The REX system plays a crucial role in the EU GSP by streamlining the process of proving the origin of goods and making it easier for exporters in developing countries to access the EU market. By reducing the administrative burden and allowing exporters to self-certify the origin of their products, the system encourages more trade and supports the economic development of the countries benefiting from the GSP. If you're an exporter from a GSP country, it's important to understand how to register in the REX system and comply with the origin rules to fully benefit from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preferential access to the EU market. X X X X Extracts X X X X X X X X Extracts X X X X
|
