What is the supplier’s declaration of origin?
The supplier’s declaration, issued at the request of customers/exporters in order to certify the preferential origin of the products sold, is governed by Regulation (EC) No 1207/2001. It is essentially a self-certification that relieves the exporter from carrying out in-depth investigations on the products purchased. However, when issuing such a declaration, the supplier has the duty to accurately verify the origin of the goods supplied. This declaration is useful to the exporter as supporting evidence for applying for the issuance of movement certificates EUR.1 or for making a preferential statement on the invoice. Through the declaration, it is certified that the products sold have originating status under a specific preferential arrangement.
The declaration may refer to a single supply. However, in the case of regular and continuous supplies of identical products during the year, the supplier may issue a single preferential origin declaration (the so-called “long-term declaration”) with a maximum validity of one year, in order to avoid issuing multiple identical declarations for each shipment.
Why does my customer request this declaration?
The declaration is essential for the customer/exporter in order to benefit from the advantages provided by the various preferential origin agreements concluded by the EU with numerous third countries. These benefits are granted if the exported products can be considered “originating” under the preferential regime being applied.
The customer/exporter can certify the preferential origin of the products only if they are certain that the rules of origin have been complied with. To achieve this certainty, they must “reconstruct” the production process carried out within their company, assess the contribution of the individual components used in manufacturing the final product, verify the origin of those components, and determine—based on the preferential origin rules laid down in the relevant agreements—whether their products qualify for preferential treatment.
What am I declaring when I sign?
By signing the declaration, the supplier certifies to the customer that the goods sold comply with the criteria for conferring preferential origin under the specific agreement between the EU and the third country of destination.
Therefore, each signatory must be fully aware of the content and rules governing preferential origin under the various agreements in force between the EU and third countries. The signatory is required to retain all evidence supporting the accuracy of the declaration for at least three years.
Is it mandatory to sign the declaration requested by the customer?
No, it is not mandatory. However, it is advisable and part of normal commercial practice. It is legitimate for the customer to request it (the legislation is EU-wide and applies equally to all European companies). Without such a declaration, the customer/exporter cannot access preferential benefits.
It should also be noted that the customer/exporter often receives similar requests from their own clients. Access to preferential benefits ultimately represents a competitive advantage in the marketplace.
What are the risks if I sign an incorrect declaration?
To benefit from preferential agreements, the customer/exporter must certify the preferential origin of their products and retain all supporting evidence for customs authorities, including declarations received from suppliers.
Customs authorities may carry out checks and verifications to assess the accuracy of the declarations. These declarations are instrumental in obtaining the EUR.1 certificate (or similar documents) required to access preferential benefits.
False declarations are subject to the provisions of D.P.R. 445/2000, in particular Article 76.
What is the relevant legislation for the long-term supplier’s declaration?
- Regulation (EC) No 1207/2001
- Regulation (EC) No 75/2008 amending Regulation 1207/2001 with regard to forms for declarations relating to non-originating goods
- Regulation (EC) No 1617/2006 adapting the forms in Regulation 1207/2001 to Pan-Euro-Mediterranean agreements for cumulation purposes
- Italian Customs Agency Circular No. 45/D of 05/07/2002
What should I do to be certain of the preferential origin of my products?
The first step is to correctly identify the customs tariff code (customs classification) applicable to the products concerned. This is not always straightforward, as in some sectors a detailed knowledge of customs tariff rules is required. In more complex cases, it is possible to request a Binding Tariff Information (BTI) ruling.
Once the correct tariff code has been identified, the next step is to determine the preferential origin. To do so, it is necessary to know the third country to which the product will presumably be exported. After identifying the country, the relevant preferential origin agreement between the EU and that country must be consulted.
This allows verification of the applicable origin rules and assessment of whether the product—based on its manufacturing process, the percentage value of non-EU originating components used, and the type of processing undergone—meets the requirements for preferential treatment under the agreement.
It is a complex task. Each element must be carefully analyzed and reconstructed step by step.
Companies dealing with the verification of preferential origin may also consider using dedicated applications. By entering a few key data points (product value, tariff code, destination country, and value of non-EU originating components used in production), it is possible—through a calculation algorithm—to determine whether and under what conditions the preferential origin declaration may be issued to the customer.
