The European Union (EU) has signed numerous preferential trade agreements with more than 100 countries in order to obtain tariff reductions for the import of goods of European origin into the countries involved. One of the most important agreements is the EUR1 certification system, but what is it exactly? What is its importance? How is it obtained?
We explain it to you below!
What is the EUR1 certificate?
It’s a document justifying the preferential origin used to export products from the European Union to nations with which the EU has signed trade agreements.
In other words, this certificate guarantees that the merchandise comes from the European Union and therefore qualifies for a preferential agreement when entering markets with which the EU has trade agreements. This benefit isn’t only for importers, but also for EU exporters, as it allows them to be more competitive in international markets and reduce export costs.
It’s worth mentioning that it only applies to EU countries and isn’t valid for exports of goods that have been manufactured in other countries and are exported from EU territory.
Where can I apply for the EUR1 certificate?
This certificate is requested at the customs office of departure. However, in order to prove that the merchandise originates in the European Economic Community, it must be presented subsequently at the customs office of destination.
In Germany the certificate is issued by the customs office. For this purpose, please apply for a corresponding template at your customs office.
What information must the EUR1 certificate contain?
The EUR1 Certificate must include:
- Address and name of exporter.
- Address and name of recipient.
- Description of the goods: full details on the type, quantity and value of the goods.
- Country of origin.
- Territory or country of destination.
- Gross weight.
- Information regarding transportation.
To which countries can I export with the EUR1 certificate?
The European Union has preferential trade agreements with the following countries:
- Europe: Iceland, Faroe Islands, Liechtenstein, Kosovo, Bosnia-Herzegovina, Georgia, Albania, Macedonia, Republic of Moldova, Ukraine, Norway, Switzerland and Serbia.
- Middle East: Jordan, Lebanon, Israel and Syria.
- Africa: Morocco, Algeria, Egypt, South Africa and Tunisia.
- America: Dominican Republic, Chile, Mexico and Colombia.
The complete list of trade agreements that the European Union has signed and is currently negotiating with other nations is available on the website of the European Commission’s Directorate General for Trade.
What are the consequences of not exporting with the EUR1 certificate?
Undoubtedly, issuing the EUR1 certificate at the right time is essential to avoid problems, delays and additional costs in the export of goods. If the certificate is not presented, the importer must pay full tariffs, which increases import costs.
However, what happens in the case of forgetfulness or ignorance?
In both cases a duplicate must be issued a posteriori with a term of five months from the beginning of the export to ensure that it arrives at destination before the merchandise.