The European Union is a profitable and attractive market for Ukrainian business. However, for preferential access to Europe, entrepreneurs need to obtain a certain certification. How this procedure takes place and what is needed for successful export/import – we will analyze further.
The EUR.1 certificate is in simple words
The EUR.1 certificate is a document that confirms the origin of the goods. It is especially important for entrepreneurs not only because it guarantees the quality of the products. The certificate also helps to reduce costs, as it allows you to get a reduced or zero duty rate.
What are the advantages of the EUR 1 certificate:
- reduced or zero duty;
- reduction in the cost of imports;
- accelerated customs procedures;
- the goods are easier to sell and become more attractive to importers;
- official proof that the goods are manufactured in Ukraine or the EU;
- advantage in tenders and contracts;
- access to preferential trade conditions.
The document applies only to VAT – not duty.
The EUR.1 movement certificate and the EUR.1 certificate of origin are the same document, but the first term is the official name. The second is more often used in practice for simplification.
When is this certificate needed?
The certificate is used when importing from the EU to Ukraine and when exporting from Ukraine to the EU. The document operates within the framework of the Association Agreement between Ukraine and the EU, as well as free trade agreements with other countries.
The EUR.1 certificate is not required for all goods, but it is mainly issued for:
- equipment;
- auto parts;
- electronics;
- clothing, footwear;
- agricultural products.
The threshold of 6,000 euros is critically important for EUR.1. If the customs value of the consignment of goods exceeds this amount, then the EUR.1 certificate is definitely required.
EUR.1 for export from Ukraine
For the export of goods from Ukraine, a customs officer issues a certificate during the export of goods and customs clearance. In addition, the exporter’s application for the issuance of a certificate must indicate the number of the export declaration issued for the relevant batch of goods.
Who issues a EUR 1 certificate for export from Ukraine:
- a Ukrainian exporter;
- a customs broker on his behalf (most often).
The document entitles the partner to a reduced or zero duty. Although the certificate is issued in Ukraine, the importer benefits abroad. Among the advantages for the exporter is that domestic products become more competitive.
EUR.1 for import (to Ukraine or to a partner country)
The EUR 1 certificate of origin is always used when the importer wants to receive a preferential duty, moreover, in cooperation with a country with a free trade agreement.
Example: Poland imports Ukrainian goods. The Polish exporter issues a EUR 1 certificate, and the Ukrainian importer submits it to customs. Thus, they receive zero duty.
That is, the Euro 1 certificate when importing into Ukraine is issued in the partner country.
How to issue a Euro.1 – short instructions
The Euro 1 certificate is issued by the customs authorities of the exporting country and is used in the importing country. Obtaining an EUR.1 is possible only if the goods were produced in the exporting country or were sufficiently processed in accordance with the rules of origin.
Step by step – how to issue a Euro 1 certificate of origin:
- prepare all necessary documents (list below);
- fill out the EUR.1 form;
- submit a package of necessary papers to customs;
- wait for customs to check the documents;
- issue the certificate.
The EUR 1 form is specific to this procedure. It has a unique number and a standard form for all countries. The main fields that the form contains: exporter, recipient, country of origin and destination, description of the goods, weight, customs and notes.
A sample Euro 1 form and certificate can be obtained:
- at customs (the official main source);
- from a customs broker (the most common and easiest way).
Usually, the certificate takes up to 3 business days to issue. The certificate itself is valid for 4 months.
Example: a Ukrainian company exports furniture to France, so it submits a package of documents to customs. After that, customs issues an EUR.1.
Documents for EUR.1
To obtain a Euro 1 certificate, it is necessary to provide customs with a package of documents confirming the export of products and their origin.
What documents are required to issue an EUR.1 Certificate:
- application for obtaining an EUR.1 certificate;
- invoice;
- foreign trade agreement;
- packing list;
- transport documents (CMR, Carnet TIR, etc.);
- customs declaration;
- documents to confirm the origin of the goods (this can be a production calculation, raw material invoices, production technical description, raw material invoices, material certificates, etc.).
The exporter can independently carry out the registration of the EUR 1 certificate. However, the most common option is to contact a customs broker. He greatly simplifies obtaining certification for an entrepreneur.
Typical errors and how to avoid them
Most often, the EUR.1 form is physical, not electronic. However, it does not allow corrections by hand or the use of a corrector. The customs stamp and the inspector’s signature must be present.
What typical errors usually contain a certificate for the transport of goods EUR.1:
- discrepancies with accompanying documents and because of real facts (different weight, inappropriate description of the goods or its value);
incorrect or incomplete data of the exporter or importer; - dates indicated “backdated”;
- description of the goods is too general and does not contain details;
- incorrectly indicated country of origin/destination;
- use of outdated form of EUR.1 form;
- mixing in one certificate several goods of different origin, for example preferential and non-preferential.
To be guaranteed to bypass all possible errors – entrust the registration of the EUR 1 certificate to a customs broker.
How does a customs broker help with the registration of the EUR 1 certificate:
- checks whether the goods meet the requirements for obtaining EUR 1;
- analyzes all documents and agrees them with each other;
- correctly fills out the EUR 1 form;
- submits all necessary documents to customs and controls their acceptance;
- helps to speed up customs clearance;
- helps in obtaining customs preferences.
With a customs broker, businesses receive EUR 1 much faster and maintain a reliable reputation with their trading partners. So, contact a professional broker to avoid customs delays, refusals and certificate cancellations.
