What is the EUR1 certificate and its impact on customs duties?

In a context where the efficiency of international trade is crucial, the EUR1 certificate is emerging as an essential tool for companies wishing to improve their exports. This key document, the result of bilateral trade agreements negotiated by the European Union, certifies the preferential origin of products, enabling them to benefit from duty reductions or exemptions in partner countries. It is important to note that the EUR1 certificate is not limited to products strictly originating in the EU; it also applies to those that meet the preferential origin criteria defined in these bilateral agreements, offering a privileged gateway to external markets.

The EUR1 certificate acts as a veritable passport for goods, facilitating international trade and providing a significant competitive advantage on foreign markets. By verifying the eligibility of products for the preferential origin criteria established by bilateral agreements, it enables companies to maximize the benefits of these favorable tariff provisions, thereby lowering export costs and increasing their competitiveness. This article aims to provide professionals with a detailed understanding of the EUR1 certificate, the procedure for obtaining it, and its strategic use in international trade.

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Understanding the EUR1 certificate

EUR1 certificate objectives

The EUR1 certificate is designed to certify that exported products are of preferential origin, entitling them to reduced customs tariffs or, in the case of imports into France, total exemption from customs duties, thanks to preferential agreements signed with third countries. The fundamental aim of this document is to boost the competitiveness of European companies on international markets by reducing the burden of customs duties. This tariff advantage considerably facilitates access to foreign markets and supports the international expansion of European business activities, by ensuring that, when imported into countries such as France, products systematically benefit from zero customs duties, subject to the application of preferential rules of origin.

Overview of trade agreements and customs benefits

The trade agreements covered by the EUR1 certificate cover a wide range of countries and regions, offering a vast array of opportunities for European exporters. These agreements can be bilateral, between the EU and a specific country, or regional, involving several countries. Each of these agreements stipulates the conditions under which goods can benefit from preferential tariffs, generally depending on their origin and specific processing or manufacturing rules.

The customs advantages associated with using the EUR1 certificate are significant. By attesting to the European origin of products, companies can benefit from reductions or exemptions from customs duties, making their products more competitive with those from non-signatory countries. These benefits vary according to the agreement and the recipient country, but the common objective is to facilitate trade and promote mutual economic growth between the EU and its trading partners.

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Obtaining and using the EUR1 certificate

The EUR1 certificate is an indispensable tool for European companies seeking to export their goods under a preferential tariff regime. Obtaining and using it is governed by precise procedures and specific eligibility criteria.

Certificate process

To obtain a EUR1 certificate, the exporter must follow several important steps. Initially, a specific form must be completed in detail. This form is available from approved printers, or can be downloaded online from dedicated platforms such as Gestion Électronique des Formalités Internationales (GEFI).

The completed form must be declared to customs as part of the export declaration. The exporter must mention the need for a visa for the certificate when presenting his declaration and the completed form to the relevant customs office. This is where the customs authorities examine the application. If the goods and documentation meet the requirements, the customs office endorses the form, validating the EUR1 certificate.

Merchandise eligibility criteria

Goods eligible to be accompanied by a EUR1 certificate must meet specific origin criteria. Two main categories of products are eligible for this certificate:

1. Products wholly obtained in the EU: this includes, for example, agricultural products harvested in the EU or mineral products extracted from its soil.
2. Sufficiently processed products: if goods are not entirely produced in the EU, they may still be eligible if they have been sufficiently processed within the Union. This processing must give the products their final character, in accordance with the rules laid down in the relevant trade agreements.

Assessing eligibility therefore requires a thorough understanding of the applicable rules of origin, which vary according to the trade agreement under which the export is carried out. The exporter must provide concrete proof of the products' origin, sometimes supported by a supplier's declaration or by additional documents justifying the transformation undergone by the goods.

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Customs advantages with the EUR1 certificate

Using the EUR1 certificate gives European companies significant customs advantages when exporting their products to countries that have signed free trade agreements with the European Union. These advantages take the form of reduced or exempt customs duties, making them more competitive on international markets.

Concrete examples of customs benefits

• Agricultural products: For exporters of agricultural products, the certificate can lead to a substantial reduction in tariffs imposed by partner countries, making European products more attractive than those from other regions.
• Industrial goods: Manufacturers of industrial goods also benefit from preferential tariffs, which can significantly reduce import costs for their trading partners and stimulate demand for these products.
• Textiles and clothing: This category of goods, which is often heavily taxed, can see its customs barriers significantly reduced thanks to the EUR1 certificate, offering a significant competitive advantage in highly competitive markets.

These examples illustrate how the EUR1 certificate can play a decisive role in the export strategy of European companies, alleviating the tax burdens associated with the entry of their products into new markets.

Impact on costs and competitiveness

Reducing customs duties with the EUR1 certificate has a direct impact on export costs. By reducing these costs, companies can either increase their profit margins, or pass on these savings in selling prices, making their products more competitive internationally. This increased competitiveness encourages companies to expand into new markets, helping to strengthen their global positioning.

What's more, effective use of the certificate can act as a strategic lever in trade negotiations, giving European companies a decisive advantage in developing their pricing and distribution strategies. In short, the EUR1 certificate is a major asset for companies aiming for international expansion, enabling them to maximize the opportunities offered by EU free-trade agreements.

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Alternative and complementary procedures

In addition to the EUR1 certificate, European companies have other ways of certifying the origin of their goods and benefiting from preferential tariff regimes when exporting. These include the invoice declaration of origin (DOF) and the EUR2 preferential origin certificate.

Declaration of origin on invoice (DOF)

The DOF represents a practical alternative to the EUR1 certificate for exporters. This declaration can be included directly on the commercial invoice or any other commercial document, indicating that the exported products are of EU preferential origin.

Specific requirements:

• DOF is particularly suitable for shipments up to a value of 6,000 euros. For shipments of higher value, the exporter must be recognized as an approved exporter by the customs authorities.

Advantages:

• Quick and easy to implement, with no need to obtain a physical certificate.
• Less red tape, which can speed up the export process.
• Easy to use for small and medium-sized businesses or for low-value shipments.

Preferential certificate of origin EUR2

The EUR2 certificate is another document that can be used in certain specific contexts, such as for trade with countries for which the EU has established special arrangements.

Specific use:

• EUR2 is mainly used in trade with countries with specific agreements that recognize this certification of origin format, such as Syria. It follows similar procedures to the EUR1 certificate, but is adapted to the specific requirements of certain agreements.

These alternatives and complements to the EUR1 certificate offer companies greater flexibility in managing their exports. By choosing the option best suited to their specific needs, exporters can optimize their international trade operations, while benefiting from the customs advantages available under EU free trade agreements.

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The EUR1 certificate, a strategic asset for the international expansion of European companies

A journey through the complexities and benefits of the EUR1 certificate highlights its indispensable role in international trade for EU companies. By facilitating access to preferential tariff conditions, this document strengthens the competitiveness of European products on world markets, reducing costs and opening up new business opportunities.

The ability to certify the origin of goods is more than just an administrative formality; it's a business strategy that enables European companies to stand out in an increasingly competitive international environment. Whether by means of the EUR1 certificate, the declaration of origin on invoice (DOF), or the EUR2 preferential certificate of origin, exporters have a range of tools at their disposal to effectively navigate the landscape of free trade agreements.