Transport document
EUR.1 Movement Certificate
An EUR.1 is evidence that goods qualify for preferential treatment under a trade agreement between two territories. It is about the origin of the goods, not about where they were shipped from.
Preferential origin is not the same as where it came from
Origin in this sense is a legal status conferred by rules in a trade agreement, not a statement about the last address the goods sat at. Goods can be shipped from a country and not originate there; goods assembled from imported components may or may not acquire origin depending on what was done to them.
The rules that decide this differ from agreement to agreement, and they are specific to the product. Whether a particular item qualifies is a determination about that item under that agreement, and it is not something a general description can answer.
What it is worth is a reduction in duty at import
Where goods qualify and the certificate is presented, the importing authority may apply a reduced or nil rate of duty instead of the standard one. That is the entire commercial point of the document.
The benefit accrues to the importer, while the certificate is normally obtained by the exporter. That split is worth naming, because it means the party who does the work is not the party who saves the money, and the arrangement between them usually needs to be explicit.
It is issued against evidence the exporter must be able to produce
A certificate is applied for on the basis that the goods meet the origin rules, and the exporter is expected to hold the evidence supporting that — supplier declarations, production records, whatever the rule requires.
Verification requests can arrive long after the shipment. An exporter who obtained a certificate without the underlying evidence is exposed at that point, and so is the importer whose duty saving may be reclaimed.
Other forms of proof exist, and the right one varies
Some agreements provide for statements on the invoice by registered or approved exporters instead of a certificate, and newer agreements increasingly work that way. Which mechanism applies depends on the agreement and on the status of the exporter.
Presenting the wrong form of proof is the same as presenting none. Establishing which applies is part of setting up a trade rather than part of preparing a shipment.
What it does
The job this document performs.
- Evidences that goods meet the origin rules of a specific trade agreement
- Supports a claim to reduced or nil duty at import under that agreement
- Identifies the goods and the consignment it relates to
- Places on the exporter the obligation to hold evidence supporting the claim
- Is one of several possible forms of origin proof, not the only one
Cautions
What goes wrong.
- Preferential origin is a legal status under an agreement, not a statement of where goods were shipped from
- The importer receives the benefit while the exporter does the work and carries the evidence obligation
- Verification can be requested long after the shipment, and a duty saving can be reclaimed
- A non-preferential certificate of origin is a different document with a different purpose
- Whether goods qualify for preference, and what proof is acceptable, is specific to the trade agreement and to the product. It is a determination to obtain from the relevant customs authority or a customs representative, on the evidence, before a claim is made.
Use the reference
Apply the definition to the actual contract and shipment.
A reference explains the role of a rule or document. The applicable edition, terms and requirements still need to be confirmed for the case.
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