Changes on origin documents for claiming preferential origin

21/03/23

With effect from 1 January 2023, Form. A certificates are no longer accepted as proof of origin to claim preferential tariff treatment under the Generalised Scheme of Preferences (GSP). In addition to this, Vietnam will no longer benefit from the GSP scheme and therefore the ‘Form. A’ and ‘REX’ origin documents previously issued to claim preferential origin Vietnam will also no longer be valid.

These changes are important not only for goods (to be) imported from 1 January 2023, but also for goods that are stored under customs supervision and where the option to ‘freeze’ the origin documents has been applied to prevent expiry of the validity of the origin document during storage. The EU Commission decided that it is no longer possible to use Form. A documents in 2023. Dutch Customs also applies this even if the frozen Form. A was valid at the time of entry into the bonded warehouse.

What does this mean for your business?

If your company stored goods with preferential origin originating from GSP-countries under customs supervision, using freezing of valid Form. A documents, it is important to be aware that these Form. A documents can no longer be used to claim preferential tariff treatment when importing into the EU.

It is recommended to check whether this also applies to your company, as it may have consequences for imports into the EU and may lead to potential costs (which had not been taken into account in the first instance).

GSP-countries

On 1 January 2017, the Registered Exporter System (REX) has been introduced within the GSP scheme. The REX is a system that allows exporters to self-certify the preferential origin of the goods they export. GSP countries were given three years to implement REX and thereby replace the Form. A by a REX statement on origin.

After the end of the implementation period, i.e. 1 January 2020, GSP countries are no longer able to issue Form. A documents. It was subsequently decided that with effect from 1 January 2023 Form. A certificates will not be accepted anymore and thus REX statements on origin are required to claim preferential tariff treatment under GSP.

Vietnam

Vietnam will no longer benefit from the GSP scheme as of 1 January 2023 and it is therefore also no longer possible to claim preferential treatment through GSP. However, because the EU has a Free Trade Agreement (FTA) with Vietnam, preferential origin can be claimed based on the FTA in case the conditions are met.

Based on the EU – Vietnam FTA, it is possible for Vietnamese exporters to (retrospectively) issue an EUR.1 origin document to claim preferential origin. Invoice declarations can also be used for shipments up to € 6,000 to prove origin.

For goods stored under customs supervision of preferential origin from Vietnam, where the preferential origin was proved by a REX document because Vietnam was still part of the GSP countries at the time of entry into the bonded warehouse, it seems that there is an opportunity to still claim preferential tariff treatment. The preferential tariff treatment can be claimed by retrospectively requesting an EUR.1 certificate from the Vietnamese exporter to prove the origin of the goods.

How can we help?

Being able to claim preferential tariff treatment or not, may have consequences for your business. It may lead to unforeseen costs if changes have not been made in time and no account was taken of Form. A and/or REX documents that are no longer valid.

PwC can assist your company and provide help with determining the consequences and impact on your business.