When you export to countries outside the EU, you often need the preferential origin of the product. The correct nature of the preference is not always used. Exporters and distributors can now check the KVK and confirm declarations explaining the preferential nature of the product. This is a pilot project.
‘Preferred’ in this context means that the products have a preferred position. This gives the foreign buyer an advantage and pays little or no duty when importing the goods. This is because the EU has trade agreements with many countries where this has been agreed.
You determine the preferred nature of the product according to the natural preference rules. These laws are complex and often vary from country to country. Often, the exact nature of the preference is not stated in the statement. Therefore, the importer may still pay the tax and the shipment will be more expensive than expected. As a test, KVK checks and verifies the nature of bias on invoice declarations and suppliers’ bias declarations. This way you can be sure that the information is correct.
A privileged background is required
You need the preferential nature of the goods for shipping documents. For example with an invoice statement or a EUR.1 or EUR-MED certificate. The exporter declares the nature of the invoice declaration and the supplier declares the nature of the supplier’s preferential declaration.
Limited customs control
When you use EUR.1 or EUR-MED, the Dutch Chamber of Commerce and Customs checks the preferential nature of the goods. The EU regularly concludes new trade agreements. And more and more new’agreement countries‘ no longer requires EUR.1 or EUR-MED as proof of preferential origin. They ask for a preferential billing statement. The exporter creates the invoice declaration itself. The correct origin is no longer checked. This increases the risk of errors.
The exact nature of the privilege
KVK checks and confirms the preferential nature of the product as a test. This is also called a pilot. The test is for exporters’ invoice declarations and suppliers’ preference declarations.
Invoice announcements from exporters
Chamber of Commerce Checks:
- If the goods you are exporting meet the conditions of preference of origin.
- Or on the invoice statement correct text has been used.
- If the correct permit number is entered if you have a approved exporter license from Dutch Customs.
The Chamber of Commerce then verifies the invoice statement. This offers several advantages:
- The invoice information is correct.
- Your customer has a limited chance of additional assessment of excise duty.
- As an exporter you meet, or comply with, the laws of origin.
The first three applications are free. After that, a certified invoice statement will cost 20.10 euros in 2022.
Supplier Distributors’ Privacy Statement
You can only request confirmation of supplier declarations from suppliers established in the Netherlands. Chamber of Commerce Checks:
The Chamber of Commerce then verifies the supplier’s information. This offers these benefits:
- You can be sure that your customer will receive an accurate supplier declaration.
- You are compliant as a service provider.
Exporters who wish to apply for a EUR.1 or EUR-MED in the Chamber of Commerce may also have a supplier declaration 2015/2447 from their supplier established in the Netherlands verified.
Within the trial, the application is free.
The result of the wrong nature of the bias
By using an incorrect preferential nature on the declaration, the importer of your goods may receive an additional assessment of import duties from foreign customs.
A courier sends hand tool tool boxes to a customer in the UK. The exporter buys it from a supplier in the European Union. Supplier announcement 2015/2447 states that the goods are of EU preferential origin. The exporter issues an invoice declaration. As a result, the UK importer does not pay any import duty.
UK customs question the origin, as the tools are often made outside the EU. A follow-up review follows. This indicates that hand tools are not manufactured in the EU. So there is no preferential nature of the EU. The importer receives an additional assessment of customs duty from UK customs, sometimes supplemented by administrative costs.
Customs may charge additional import duties for shipments up to five years past. In addition to financial damage, this can also have a negative impact on mutual business relationships. And it may even cause one legal dispute.
Participate in trials
Do you want to be sure that your invoice declaration or supplier preference declaration is correct? Then participate in the tests and have your information reviewed by the Chamber of Commerce. The Department of Export Documentation explains how to participate. To do so, please contact us by email or phone:
The pilot is called The beginning. In addition to the Netherlands, Canada, England and Switzerland are also participating in this experiment. The founder is International Chamber of Commerce (ICC).