Certificate of Origin: Changes in Trade Between Chile and the EU

certificado de origen

A Radical Change in the Certification of Origin

Trade between Chile and the European Union (EU) will undergo a significant change in how the origin of exported products is accredited, moving away from the certificate of origin previously issued by ProChile.

“As of February 1, 2025, the declaration of origin issued by the exporter and the importer’s knowledge that the product is of origin will come into effect.” β€” ProChile.

With the implementation of the Interim Trade Agreement (ATI), the use of the EUR.1 Certificate of Origin or invoice declarations will be eliminated. Instead, exporters and importers must use the Registered Exporter System (REX) to issue origin declarations.

This change brings benefits, challenges, and new responsibilities for Chilean companies trading with the European Union.

In this article, we explain everything you need to know to successfully adapt to this transition. Keep reading!

What Is a Certificate of Origin, and Why Is It So Important?

The certificate of origin is a fundamental document for international trade, as it certifies the country of origin of a product’s manufacturing. Its main purpose is to allow goods to access tariff benefits under free trade agreements, ensuring compliance with import and export regulations.

Under the new regulations, instead of relying on a document issued by a certifying entity (as was previously done with a hybrid model of EUR.1 + authorized exporter), exporters will be responsible for self-certifying the origin of their products through the REX System. This implies greater control over their exports but also increased responsibility for the accuracy of the information provided.

What Was a Certificate of Origin Used For?

Exporters used this document to validate that their goods complied with foreign trade regulations and rules. It also allowed importers to access preferential tariffs. Customs authorities used it to enforce trade regulations.

Foreign trade certificates are essential to validate and ensure compliance with established requirements.

Who Issued the Certificate of Origin?

In Chile, the certificate of origin was issued by authorized entities such as the Chamber of Commerce and ProChile. However, with the new interim trade agreement between Chile and the European Union, starting in February, ProChile will stop issuing these EUR.1 certificates for exports to the EU.

How Will It Work Now?

With the new changes, the entity responsible for verifying origin will be the National Customs Service.

Why Was This Change Made?

The change in origin certification is due to the implementation of the new Interim Trade Agreement (ATI) between Chile and the EU. This agreement removes certain administrative barriers and facilitates bilateral trade. As a replacement, the certificate of origin must be issued by exporters through origin declarations.

This means that exporting companies must adapt to a new mechanism for certifying the origin of their products, which entails greater responsibility in determining product origin.

The new agreement aims to streamline export processes and reduce administrative costs for Chilean companies seeking to trade internationally with the EU.

One key requirement for self-certification is obtaining a REX number (Registered Exporter System), which will be mandatory for all companies wishing to export to the EU under the agreement’s tariff preferences.

The Undersecretariat of International Economic Relations (SUBREI) has stated that these changes are part of a new modernization process for the trade agreement. Therefore, exporters must familiarize themselves with the new regulations.

Changes Effective February 1, 2025:

πŸ“Œ EUR.1 circulation certificates and invoice declarations under the (former) EU-Chile Association Agreement will no longer be accepted as proof of preferential origin for goods imported or released for free circulation in the EU or Chile.

πŸ“Œ Preferential origin requests must be based on an origin declaration or the importer’s knowledge, as applicable.

πŸ“Œ Preferential origin requests for products in transit, temporary storage, bonded warehouses, or free zones on February 1, 2025, must be based on the origin declarations provided in the ATI.

πŸ“Œ Authorized exporter numbers under the (former) Association Agreement will be replaced by the REX number. As a result, origin declarations for goods originating from the EU in shipments exceeding €6,000 must include the REX number.

πŸ“Œ EU exporters who need a REX number can find out where to apply at the following link: REX Number Validation.

πŸ“Œ Chilean exporters must indicate the respective declaration in the invoice or any commercial document (Purchase Order, Packing List, delivery note, etc.) as described in Annex 3-C, including at least the following details: product description, place and date of issuance, name and signature of the exporter. If the origin declaration date differs from that of the commercial document, the four-digit tariff heading must also be stated. The Authorized Exporter Number will be replaced by the Exporter’s RUT.

πŸ“Œ The origin declaration will be valid for one year from the date of issuance.

πŸ“Œ In triangular operations involving an operator not party to the agreement, official customs instructions are still awaited.

πŸ“Œ Any import operation processed until January 31, 2025, may apply under the β€œOld Agreement,” using EUR.1 or the invoice declaration.

πŸ”΄ REMEMBER: Origin declarations must comply with the language versions described in Annex 3-C of the agreement. Consult Annex 3-C. Everything mentioned above is mandatory.

How Will the New System Work? What Is the Registered Exporter System (REX)?

The Registered Exporter System (REX) is a self-certification mechanism that allows exporters to declare the origin of their products without needing to request an external certificate. To use this system, companies must be registered in the REX database and meet specific requirements.

Want to read the official news? Visit the European Union’s official site: EU Official Website.

Steps to Adapt to the New System

  1. Register in the REX System: Companies must sign up on the official platform managed by the Undersecretariat of International Economic Relations (SUBREI).
  2. Meet Origin Requirements: Products must comply with the origin criteria defined in the agreement with the EU.
  3. Issue Origin Declarations: Instead of the EUR.1 Certificate, exporters must include an origin declaration in their commercial invoices based on their REX registration number.
  4. Maintain Proper Records: Companies must keep supporting documentation to prove compliance with origin rules in case of audits.

Benefits and Challenges of the New Certification System

Benefits:

βœ… Expanded Tariff Benefits: More products will qualify for tariff reductions, according to Chilean Customs.
βœ… Increased Export Agility: The certification process will be faster and more direct, facilitating trade with the EU.
βœ… Greater Control Over Certification: Exporters will have more autonomy in managing their international operations.

Challenges:

⚠️ Greater Responsibility for Exporters: Errors in the origin declaration could result in sanctions or loss of tariff benefits.
⚠️ Training and Adaptation: Companies and foreign trade teams must thoroughly understand REX regulations and procedures.
⚠️ Customs Audits: Stricter controls will ensure products comply with origin rules.

What Role Will ProChile Play in This New Scenario?

With the implementation of the REX system, ProChile will no longer issue EUR.1 Certificates of Origin for exports to the EU. However, it will still play a key role by providing:

πŸ“Œ Advisory and Training: ProChile will guide companies through the transition to the REX system, ensuring they understand their obligations and benefits.
πŸ“Œ Supervision and Verification: While exporters will self-certify their origin, ProChile will oversee compliance and assist in audits.
πŸ“Œ Support in Special Procedures: In exceptional cases, ProChile will continue assisting with complementary documentation and resolving certification issues.

Consequences of Non-Compliance

Failing to meet REX system requirements can have serious consequences for exporting companies:

❌ Loss of Tariff Preferences: If the origin certification is invalid, products may be subject to higher tariffs.
❌ Customs Sanctions: Authorities may impose fines or restrictions on non-compliant companies.
❌ Delays in International Trade: Incorrect origin declarations can cause customs delays and affect relationships with European clients.

What Should Companies Do Now?

πŸ”Ή Get Informed and Trained: It is crucial for exporters to understand the changes and how to implement them correctly.
πŸ”Ή Update Procedures: Ensure internal processes align with the new self-certification system.

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