Origin of goods
1. General characteristics of rules of origin
1.1 Origin of goods
The concept of rules of origin of goods is closely related to customs issues. The EU has a number of customs rate types, among others so-called preferential customs rates that are lower than other customs rates.
This area is regulated by a number of EU treaties with individual countries or groups of countries, or through unilateral measures by the EU toward selected groups of countries. These treaties contain rules that lead to stipulation of the origin of goods and products in a specific country through precise definitions that apply to individual chapters of the Harmonized Product Classification System.
The purpose is to precisely distinguish the origin of a product and to determine whether the goods are eligible for preferential customs rates upon export, and thus whether these goods are of preferential origin or not.
1.2 Preferential EU agreements and unilateral preferential measures by the EU
The EU has entered into preferential agreements or has unilateral preferences with practically all countries in the world aside from the USA, Australia, New Zealand, Japan, Taiwan, Hong Kong, Thailand, Malaysia, and Singapore. In 2014 this list of countries grew to include countries excluded from the GSP scheme - Russia, Belarus, UAE, Brazil, Argentina, Cuba... Products from these countries always have non-preferential origin and are not subject to preferential customs rates.
1.3 Usage of rules of origin
All preferential EU agreements and unilateral EU measures contain detailed rules for determining the origin of goods, and in particular define sufficient and insufficient working and processing of products. Their annexes contain overviews of products according to the chapters of the Harmonized System, including specific methods of working and processing necessary to obtain preferential status for a product in a specific country in which such working or processing occurs.
2. Proving origin in the EU
2.1 Legislation concerning proof of origin
In general, the origin of products and goods is proven in two ways, through a declaration by the manufacturer/supplier, or on a EUR.1 form.
In order to use the above means of declaration, the supplier must have approved exporter authorization, which makes it possible to make use of simplified customs procedures during export of goods.
Ferona is an approved exporter, which makes it possible to use simple written declaration to a greater extent. Ferona's approved exporter number is CZ/07/0041/05.
2.2 Declaration of the manufacturer/supplier
This is a written document in which the manufacturer or supplier undertakes to their clients in a declaration that the supplied goods originate in the community/country that they have specified. It can take the form of a declaration on the invoice, on the bill of lading, or can be a separate document. It can also be issued later, after delivery.
Individual declaration types can be classified according to three different criteria: whether this declaration applies to products that have preferential or non-preferential origin, whether the declaration is one-off or long-term, and whether it concerns trade within the EU or export OT countries outside the EU.
2.3 EUR.1 forms
The EUR.1 document is made out by the relevant customs authority based on a written request from the exporter on the prescribe form. Prescribed forms for the EUR.1 document and applications are part of all EU preferential agreements and are unified.
Preferential agreements with the EU stipulate precise use of the EUR.1 document.
3. Proof of origin at Ferona
The obligation to apply Council Regulation (EC) No 1207/2001, as amended by Council Regulation (EC) No 1617/2006, which was replaced by Commission Delegated Regulation (EU) 2015/2446 of 28 July 2015, (Annexes 22-15 to 22-18), meant that Ferona had to come up with appropriate methodology, including a SW application, that would provide proof of origin to customers. Given the large number of customers and number of items supplied, we prefer to issue one-off declarations of product origin on invoices. Issuing long-term declarations, which our customers often request, would be practically impossible for us due to the inability to guarantee the origin of commercial goods in advance over the long term. We trust that you understand this reason and that it will not have a negative impact on most of you.
We would also like to ask you to submit your requirements for proof of origin of goods when placing your order. While we are able to fulfil later requests, we cannot use our usual software to do so and involves more work for us and takes more time.
3.1 Responsibility for declaration upon sale
In accordance with Article 63(3) of Commission Implementing Regulation (EU) 2015/2447 of 24 November 2015, a declaration does not have to have a personal signature if the supplier assures the client in writing that he assumes full liability for any declaration identifying him, as if he had signed it personally.
Ferona does not sign one-off declarations on invoices, and the purchase agreement contains the following sentence concerning assumption of all liability:
Ferona undertakes that it accepts all liability for every declaration concerning origin of goods that bears its trade name, as if it were personally signed by an authorized representative of the company. This pledge is undertaken in accordance article 63(3) of Commission Implementing Regulation (EU) 2015/2447."
3.2 One-off declaration of origin of goods for the Czech Republic and countries of the EU
If the customer requires proof or origin of goods, the sales specialist will ensure in IS that the following text is printed on the invoice:
D E C L A R A T I O N
I, the undersigned, declare that the goods specified on this document originate in countries listed for individual items in the field "Country of origin" and complies with rules of origin governing preferential trade with IS, LI, NO, CH, MK, XC, XL, FO, CL, MX, IL, PS, ACP, TN, DZ, MA, EG, JO, LB, PE, CO, Central America, AL, BA, ME, XS (RS), ZA, MD, GE, KR, UA, and CA.
I declare that:
|Cumulation used with|
|X||Cumulation not used|
I pledge to submit to customs authorities any proof that these authorities request.
If the customers wishes the Purchase Agreement to state that proof of origin shall be provided, the sales clerk will arrange in IS for the following text to be printed on the Purchase Agreement:
"The customer requests proof of origin of goods."
3.3 One-off declaration of origin of goods upon export (Ferona exports outside the EU)
In this case the following declaration is printed on the invoice in the part entitled "Other Provisions":
The exporter of products specified in this document (authorization number CZ/07/0041/05) declares that these products have the preferential origin specified for individual items in the "Country of origin" field.