Preferential origin checks by KVK

When exporting to countries outside the EU, you regularly need to fill in the preferential origin of products on your export statement. But mistakes are easy to make and the correct preferential origin is not always filled in. As part of a pilot project, exporters and suppliers can now ask KVK to check and confirm their declarations stating the preferential origin of products.

When it comes to international trade, 'preferred origin' means that products have a privileged position. The EU and the country of origin have a trade agreement. Foreign buyers pay less or no import duties when importing those products. 

You determine the preferential origin of a product based on the preferential rules of origin. These rules are complicated and often differ per country. It is easy to get it wrong, and this often happens. When the wrong preferential origin is used in a statement, an importer may need to pay import duties after all. The shipment will be more expensive than expected.

In this pilot, KVK checks and confirms the preferential origin on invoice statements and supplier's declarations of preferential origin. This way you can be sure that the statement is correct.

Preferential origin needed

You need the preferential origin of products for export documents. For example for an invoice statement or EUR.1 or EUR-MED certificate.

• An exporter declares origin on an invoice statement.
• A supplier declares origin on a supplier's declaration 2015/2447. 

Fewer customs checks

When using an EUR.1 or EUR-MED, KVK and Dutch Customs check the preferential origin of products. The EU regularly concludes new trade agreements. And more and more new 'agreement countries' (in Dutch) no longer require EUR.1 or EUR-MED as proof of preferential origin. Instead, they ask for a preferential invoice statement. An exporter draws up their own invoice statement. The correct origin is no longer checked. This increases the risk of errors.

Correct preferential origin

During the trial period, KVK checks and confirms the preferential origin of products. The trial is for exporters' invoice statements and supplier's declarations of preferential origin.

Invoice statements from exporters

KVK checks whether:

• the products you export comply with the preferential rules of origin.
• the correct text has been used on the invoice statement. See the Proof of Preferential Origin tool (pdf) for examples.
• the correct licence number has been entered if you have an approved exporter's licence (in Dutch) from Dutch Customs. 

KVK then confirms the invoice statement. This provides several advantages:

• You can be certain that the invoice statement is correct.
• Your customer runs less risk of paying extra import duties.
• As an exporter, you meet the rules of origin. In other words, you are compliant.

The first 3 applications are free. After that, a confirmed invoice statement costs €21.80.

Supplier's declarations of preferential origin

You can only request confirmation for declarations from suppliers established in the Netherlands.

KVK checks whether:

• the preferential origin stated on the supplier's declaration 2015/2447 complies with the preferential origin rules.
• the correct text has been used. 

KVK then confirms the supplier's declaration. This provides these benefits:

• You are certain that your customer receives the correct supplier's declaration.
• You are compliant as a supplier. 

Exporters who want to apply for an EUR.1 or EUR-MED at KVK can also get confirmation of a supplier's declaration 2015/2447 from their supplier established in the Netherlands.

During the pilot, applications are free of charge.

Consequences of wrong preferential origin

By using an incorrect preferential origin on a declaration, the importer of your products may receive an additional assessment of import duties from the foreign customs authorities. Meaning the importer will have to pay (more) import duties.

Example

An exporter sends toolboxes of electric hand tools to a customer in the United Kingdom. The exporter buys it from a supplier in the EU. The supplier's declaration 2015/2447 states that the products are of preferential EU origin. The exporter draws up an invoice statement. As a result, the British importer does not pay any import duties.

British Customs doubts the origin, as such tools are often made outside the EU. They do a follow-up check. This indeed shows that the hand tools are not made in the EU. So, no preferential EU origin. The importer receives an additional assessment of the import duties from the British customs, sometimes supplemented with administrative costs.

Customs can charge additional import duties for shipments for up to 5 years later. In addition to financial damage, this can also have a negative impact on the mutual business relationship. And it can even lead to a legal dispute. 

Take part in the pilot

Do you want to be sure that your invoice statement or supplier's declaration is correct? Then participate in the pilot and have your declaration or statement checked by KVK. The Export Documents department will explain how you can participate. To do so, please contact us by email or telephone:

• Export documents region West: 088 585 18 87
• Export documents region East/Southt: 088 585 18 89

The pilot is called Genesis. In addition to the Netherlands, Canada, the United Kingdom, and Switzerland are also participating in this trial. The initiator is the International Chamber of Commerce.