The REX system is the system of certification of origin of goods that applies to the nations which benefit from the GSP within the European Union.
The REX system was introduced in the GSP rules of origin by the amending Regulation (EU) No 1063/2010 in the context of the reform of the GSP rules of origin in 2010. While the other elements of the reform have taken their effect as from 1 January 2011, the application of the REX system was deferred to 1 January 2017, to give enough time to the GSP beneficiary countries to be ready. However, some countries have still not met the Rex Conditions.
The REX system will progressively and completely replace 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 as well that the REX system is used between GSP beneficiary countries applying regional cumulation.
It is based on a principle of self-certification by economic operators who will make out themselves so-called statements on origin. To be entitled to make out a statement on origin, an economic operator will have to be registered in a database by his competent authorities. The economic operator will become a "registered exporter". Most GSP countries are now fully applying the REX system.
The GSP supports economic growth and job creation in the beneficiary countries by allowing them to pay fewer or no duties on exports to the EU, giving them vital access to the EU market and contributing to their growth.
The GSP has three objectives:
contribute to poverty eradication by expanding exports from countries most in need
promote sustainable development and good governance
ensure that the EU’s financial and economic interests are safeguarde
REX is an EU registration system authorising exporters in GSP beneficiary countries to issue a self-certificate (statement of origin) for eligible goods being imported under preference to the EU. The statement of origin replaces the GSP Form A and invoice declarations.
The REX system was introduced for GSP beneficiary countries on 1 January 2017. However, those countries had the possibility until 30 June 2016 to notify the European Commission if they prefer to start the application of the REX system later, that is as from 1 January 2018 or as from 1 January 2019.
In addition to this, to effectively apply the REX system, a GSP beneficiary country has to satisfy two conditions:
submitting to the Commission an Undertaking providing for administrative cooperation, and
communicating to the Commission the contact details of the competent authorities dealing with the registration of the exporters and administrative cooperation.
REX transition issues
A small number of GSP beneficiary countries whose transition period has ended and who have not satisfied these conditions are now, unfortunately, unable to issue valid proofs of origin, that is GSP Form A’s, invoice declarations or statements of origin. In effect this rules them out from GSP rates of duty and GSP must not be claimed on import into the EU until these conditions are met.
Hammad Baig can assist with issues that arise out of Origin of goods and can also assist in the implementation of the REX system.