The EU’s registered exporter system (REX system) provides a system for certificating the origin of goods with respect to the EU’s Generalised System of Preference (GSP). The global transition period from the current system of origin certification to the REX system began 1 January 2017 and will continue until 30 June 2020.
The REX system has been available since 2017, and is based on a principle of self-certification by economic operators for their “statements on origin.” To be able to generate a statement on origin, an economic operator must be registered in a database by the pertinent competent authorities. The economic operator then is deemed a “registered exporter.”
The REX system was introduced in the GSP rules of origin by regulations in 2010. While certain measures were effective beginning in 2011, the effective date of the REX system was deferred to 1 January 2017 so as to afford GSP beneficiary countries sufficient time to prepare and to be ready and will continue until 30 June 2020. The REX system progressively and completely replaces the current system of origin certification based on certificates of origin issued by governmental authorities and on invoice declarations made out under certain conditions by economic operators. This means that the REX system is to be used between GSP beneficiary countries applying regional cumulation.
The REX system will also be applied in the context of bilateral trade agreements between the EU and the partner countries. For instance, the free-trade agreement between the EU and Canada will be the first such agreement.
An EC release explains the functionalities of the REX system that include rules relating to:
The REX system also provides an online search function that allows for verification of registrations of the exporters that submit statements on origin.
The rules for determining the origin of goods for GSP purposes of the European Union remain unchanged. The REX system simply amends the method to certify the origin of goods.
For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:
John L. McLoughlin
Luis (Lou) Abad
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