What is the RCO? Discover a key instrument of international trade

What is the RCO? Discover a key instrument of international trade

Binding Origin Information (BOI) is an essential tool in the world of international trade. It serves as a guide for companies, providing them with legal certainty as to the origin of their goods. This clarification is crucial, as it directly affects customs duties and market access. Within the European Union, the OCR is of particular importance, helping companies to navigate the complex web of trade agreements and customs regulations. By guaranteeing a uniform and reliable interpretation of product origin, the RCO offers significant added value, facilitating trade and strengthening the competitiveness of European companies on the world stage.

What is Binding Origin Information (BOI)?

To clarify the origin of your products, you have the option of requesting a RCO.

RCO definition and objectives

Binding Origin Information (BOI) is a document issued by customs authorities, which determines the origin of goods. This certification plays a key role in compliance with international trade regulations. It is particularly relevant in the context of preferential agreements, affecting customs tariffs through reductions or exemptions (as under the GSP or with certificates such as EUR1), as well as for trade restrictions (anti-dumping, quotas). The aim of the RCO is to provide legal certainty and predictability for companies, by specifically clarifying the classification of the origin of their products, essential for navigating the complexities of international trade.

It's crucial to distinguish between a product's place of manufacture and its origin. Although these terms are often used interchangeably, they have different implications for trade regulations. The origin of a good determines the applicable customs regulations and free trade agreements, which may differ from the place of manufacture. This distinction is fundamental to the correct application of customs regulations and to benefiting fully from free trade agreements.

Benefits for companies

Binding Origin Information (BOI) offers several significant advantages, particularly for Authorized Economic Operators (AEOs). It locks in the origin of goods, reducing the risk of errors in origin classification. This assurance is invaluable, especially for companies handling products whose origin can vary from very simple to extremely complex depending on the manufacturing process, offering peace of mind and legal certainty in their international transactions. What's more, RCO facilitates access to preferential tariffs under various free trade agreements, while requiring additional supporting documentation, boosting compliance and competitiveness in international trade.

How the RCO works

A thorough understanding of how the RCO works is crucial to its effective use.

Application process

The request for a RCO must be made separately for each type of merchandise, particularly if changes in the manufacturing process affect its origin. The Cerfa n° 13172*05 form, available on the customs website, must be used. This procedure requires details of the origin of intermediate products, and the nature and location of the stages involved in obtaining the product, guaranteeing the accuracy of the information.

Validity and use

Once issued, the RCO is valid for three years and can be invoked against all EU customs authorities. It is important to note that the RCO is binding on customs services as long as the information provided remains accurate. The document has no retroactive effect, and can only be invoked by its holder. It plays an essential role in securing customs declarations, and enables you to benefit from the commercial and tariff advantages associated with import and export operations.

RCO and customs regulations

The RCO plays a key role in ensuring compliance with customs regulations.

RCO and origin of goods

The impact of the RCO on the origin of goods is considerable. It provides a solid legal basis for determining origin, essential for the application of customs regulations such as anti-dumping tariffs and marking requirements. This determination is crucial, especially in the context of free trade agreements, where the preferential origin of goods can pave the way for reduced or zero tariffs.

Business implications

The use of RCO has significant commercial implications for companies. By providing certainty of product origin, companies can better navigate the landscape of trade agreements, optimizing their import-export strategies. This not only secures customs operations, but also enhances competitiveness in the international marketplace, safeguarding customers' interests and boosting confidence in supply chains.

An evolving pillar of world trade

Binding Origin Information is more than just a customs tool; it is a fundamental pillar in the fabric of international trade. By offering clarity and legal certainty, BTI plays a crucial role in facilitating trade. In the future, its importance will only grow, adapting to the changing dynamics of global trade and remaining an essential component for companies seeking to successfully navigate an increasingly complex business environment.

In the complex landscape of customs operations, Nabu is the solution that enables companies to be more efficient, fast and competitive. By centralizing, unifying and controlling shipping data, Nabu simplifies processes and ensures that every system and stakeholder has the right information, in the right format, at the right time.

Optimize your customs processes with Nabu.

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