To benefit from customs preferences under free trade agreements, companies must follow certain steps and meet the requirements of the respective agreements. Here are fundamental steps companies can take to utilize customs preferences:
1. Understand Product-Specific Requirements:
Each free trade agreement contains specific rules and requirements for claiming customs preferences. These may relate to rules of origin, minimum processing requirements, and other criteria. Companies must understand the product-specific requirements.
2. Determining the Country of Origin:
Businesses must ensure their goods meet the rules of origin of the free trade agreement. This requires accurately determining the country of origin of the goods, based on the established criteria of the respective agreement.
3. Issuing the Proof of Origin:
To benefit from customs preferences, a proof of origin must be prepared and presented to customs. This can take the form of a certificate of origin or other suitable documents that demonstrate compliance with the rules of origin.
4. Registration with Customs:
In some cases, companies need to register with customs to take advantage of the free trade agreement’s benefits. This may be required to be treated as a preferred importer or exporter.
5. Stating the Preferential Origin in Trade Documents:
Companies must clearly state the preferential origin of the goods in the trade documents. This can be done on the commercial invoice or other relevant documents.
6. Implementing Internal Processes:
Companies must implement internal processes to ensure they comply with the free trade agreement’s rules of origin. This can include collaborating with suppliers, accurate documentation, and staff training.
7. Staying Updated on Agreement Changes:
Free trade agreements can change, and businesses need to regularly inform themselves about updates and amendments. It’s crucial to ensure compliance with the latest requirements.
