Today we focus on the differences and similarities between the Registered Exporter (REX) system and the Authorized Exporter.
These two options are essential to simplify export operations and ensure a smooth and efficient trade and shipping flow.
What REX, Registered Exporter, means
REX is a system created by the European Union to simplify origin procedures in trade transactions with countries benefiting from preferential trade agreements.
Practically, it is a system for certifying the origin of goods based on a principle of self-certification. The origin of the goods is declared by the economic operators themselves with the declarations of origin. To be entitled to issue a declaration of origin, a company must be registered, by the competent authorities, in a database: in this way it becomes a “registered exporter.”
In order to effectively apply the REX system, certain prerequisites must be met, such as submitting a declaration of commitment that provides for administrative cooperation of the REX system, and informing the commission of the contact details of the competent authorities involved in exporters’ registration and administrative cooperation.
There are agreements with some specific countries that, through REX, simplify and regulate the transport procedures of certain goods outside of Europe, bound, for example, to Japan, South Korea, Vietnam, Singapore, Ghana, Ivory Coast, the United Kingdom, and other countries in southern and eastern Africa.
Authorized Exporter: features
The Authorized Exporter is another crucial option to facilitate export activities, because it allows companies, both manufacturers and traders, to be able to certify the preferential origin directly on the invoice regardless of the value of the exported products. This type of authorization makes it possible to avoid the request for a EUR1 certificate, so as to make the export procedures more streamlined.
Legal requirements
It is compulsory to be an authorized exporter when you want to declare the EU preferential origin of your products, for supplies exceeding €6,000 to South Korea, Singapore and other states that provide for the obligation in bilateral agreements signed with the European Union.
It is mandatory to be registered with the REX bank, and thus to be a registered exporter, when you want to declare the EU preferential origin of your products, for supplies exceeding €6,000, to Great Britain, Canada, Japan, Vietnam, and other states that provide for this obligation.
Differences and Similarities
Both systems aim to simplify customs procedures, allowing exporters to benefit from tariff reductions or exemptions. There are some operational differences, for example:
– Registration in the REX database is immediate, while the issuance of authorization follows a process.
– The REX database assumes a single registration, which is valid for all nations that join this system; on the other hand, to obtain the status of authorized exporter an application is necessary for each country and, except in cases where it is mandatory, is generally issued only if the exports to that country are not occasional.
Both involve a customs audit designed to ascertain the reliability of the operator, knowledge of preferential origin regulations, the training of the resources employed, and the adequacy of the accounting and administrative system to the documentation of origin.
The two procedures therefore have some key differences in the requirements and the application methods.
