What is an Approved Exporter authorization?
Customs authorities all around the world want to start working without using paper documents. But a EUR1 certificate must also be available in its original form on time at the place of customs clearance in the country of destination at the moment of the import declaration. To make things easier, international agreements have been made to simplify this process. Companies that regularly export and have expertise in rules of origin may be eligible for an Approved Exporter authorization. With this authorization, a company only needs to place a specific text on the export invoice and state the licence number – this saves work, time, and money.
Rules of origin and trade agreements
The same rules of origin apply for the purposes of an Approved Exporter authorization as for a EUR1 certificate. However, in the case of a EUR certificate, the Dutch Chamber of Commerce assesses whether the certificate can be issued. New trade agreements have now been concluded, such as between the European Union and South Korea and between the EU and Canada, whereby only invoice declarations may be used to prove preferential origin. However, EUR certificates are not permitted in this bilateral trade, which means that companies trading with South Korea are obliged to apply for an Approved Exporter authorization. Because customs authorities are also aware that not every exporting company can be expected to apply the complicated rules of origin correctly, more and more combined authorizations are being issued. To obtain a combined authorization, the holder of the authorization is obliged to have the application of the rules tested by an external expert, which requires explicit procedural agreements. SGS Maco is often asked to act as an external party in such cases and is a trusted customs partner, now that the working methods for this procedure have been standardized.
Application procedure for the Approved Exporter authorization
The procedure for applying for an Approved Exporter authorization is complex due to the nature of the legislation to be applied. An expert third party such as SGS Maco is often asked to assist in the application process.