What is EUR 1 document?
The whole world is one large market, linked by international and free trade agreements. Free trade is greatly facilitated by international agreements and regulations which include the proof of origin, better known as the EUR 1 document.
The controlled origin of the imported goods brings certain benefits for importers due to customs exemptions. Countries that have adopted this document for the exchange of goods with the EU are Albania, Algeria, Bosnia and Herzegovina, Chile, Colombia, Egypt, Faroe Islands, Honduras, Iceland, Israel, Jordan, Lebanon, Liechtenstein, Macedonia, Mexico, Montenegro, Morocco, Nicaragua, Norway, Panama, Peru, Serbia, South Africa, Switzerland, Syria, Tunisia, Turkey, Ukraine and the Gaza Strip.
Proof of origin – what do you need to know?
Proof of origin must be provided to the importing country by the exporting countries within a specified period and must not be more than 4 months old.
Our country is a signatory of this international agreement – this agreement allows freer flow of goods without customs clearance and payment. Also, customs rates are greatly reduced in the case of addition of document that is the proof of origin.
This document is mainly submitted to the Customs Administration and the importing country must submit it on time to the exporting country in order to obtain preferential customs conditions. If all the necessary documentation is provided, proof of origin of the goods can be seen on the invoice, if the value of the goods exceeds 6000 euros. Also, EUR 1 form may be drawn up on the basis of a statement of origin, which is submitted with all supporting documents.
What if there is no proof of origin of goods? The goods are then cleared at the normal custom rate. It is advisable to keep the EUR 1 document for up to three years from the date of issue.
Types of origin of goods
The origin of goods and the rules of origin vary. There are two types of origin of goods: preferential and non-preferential. The two types are significantly different. When it comes to non-preferential origin, it is important to make a clear distinction between the two major product groups.
There are products that are in whole manufactured in one country and products that are to a sufficient extent processed in one country. When it comes to products that are manufactured in whole in one country (or community of states), we are talking mainly about primary products, such as mineral products, plant materials and raw materials of animal origin that have been converted into final products.
However, the situation is different when it comes to products that have been processed in multiple geographical locations and in more countries. Then the origin of the goods is tied to the country where the goods had their final and most important, economically justified processing. There are several ways to determine the non-preferential origin of goods: the criterion for the processing, value and modification of the customs seal from the Customs rate. If so prescribed by the Customs, an additional document on the origin of the goods must sometimes be supplied.
EUR 1 document or Declaration on the Invoice?
EUR 1 is a document which indicates and proves the preferential origin of the goods. These goods receive more favorable treatment in the customs procedure. The EUR 1 document is completed in one of the languages in which the agreement is signed and must comply with all legal regulations.
The applicant must be prepared at all times to provide the customs authorities with all the documents relating to the origin of the goods. The customs authorities may also require the importer’s declaration that the products meet all requirements and, if necessary, even the translation of the documents.
The EUR 1 form must also be accompanied by certain documents such as evidence of the procedures taken by the exporter to obtain the goods, purchase the materials and process the materials. In this case, invoices can be provided to keep everything transparent.
In some cases, a declaration on the invoice may be used instead of the EUR 1 document. We have already mentioned the amount of 6000 euros – declaration on the invoice can be used only if the value of the goods does not exceed this figure. It is advisable to keep the invoice (or its copy) for up to three years from the date of issue.
If you are still confused and unsure how to determine the origin of the goods, choose the best option for yourself – leave it to the professionals. We will find the best solution, because we have been in this business and industry for a long time and can give you the best estimate. Contact us and we’ll find a solution together.