One of your clients wants to sell your product to a buyer abroad.
This client asks what the preferential origin of the product is.
The information may reduce their buyer's import duties.
You have to draw up a supplier's declaration of preferential origin.
But how do you do that?
We'll explain in this video.
To fill in the supplier's declaration correctly, you need to take a couple of steps.
This may require some research on your part.
That means extra work, but you do want to be certain.
Because if you issue a faulty declaration, there are risks...
both for you and your client.
They may end up having to pay more import duties...
and sometimes even a fine.
As supplier, you are liable for the declaration you give.
You can only issue a supplier's declaration of preferential origin...
if your products are of preferential origin.
That is, if the origin of your products is inside the EU.
It can be difficult to determine origin...
for example, if you import a product or raw material...
to make a different end product with.
How the rules work exactly is described in the trade agreements...
the EU has with several countries.
But: the rules may differ from country to country.
So you have to find out for each country whether your product is of preferential origin.
Do you purchase goods?
Then ask your supplier for a supplier's declaration.
Do you make the product yourself? Use the EU ROSA tool...
to find out whether your product is of preferential origin.
The supplier's declaration can only be used by and for EU-based companies.
Suppliers and buyers in Türkiye and Northern Ireland are excepted.
Is that relevant to your situation? Then contact KVK.
There are 2 types of declaration. We'll take you through them step by step.
A declaration for one-time use and a declaration for repeated use.
You use the one-time declaration...
if you sell something to a client once.
You can put this declaration on your invoice to the client.
You use the declaration for repeated use...
if you sell the same products to this client repeatedly during the year.
The declarations contain standard texts.
You find these texts on the KVK website in multiple languages.
Copy these texts exactly.
Now, I will help you fill in the missing details...
on the supplier's declarations.
We'll start with the declaration for repeated use.
In fields 1 and 2 you enter the product description.
Describe your products as clearly as possible.
Avoid general words such as 'furniture'...
instead, indicate: furniture, wooden coffee tables.
If you can, also mention the product code here.
The product code is also called the HS code.
If your statement concerns many different products, you can add an attachment.
Refer to the attachment in this field.
In field 3, enter the client's details.
So your client's name, address, and place of residence.
Ask your client for the correct information.
You need a visiting address, not a postal address.
Please note: you have to fill in these details on the statement in 2 places.
In field 4, fill in 'European Union'.
You can also enter the member state...
only if the product was actually made or processed there...
according to the rules of preferential origin.
Don't use abbreviations for country names, write them out.
It's easy to make a mistake.
On to field no. 5.
Here, you check the country or group of countries...
for which your client may use supplier's declarations.
Only check countries of which you know for certain...
that the products meet the rules for preferential origin.
There is an additional entry for destination country Japan.
You have to enter the origin rule for your products...
for example: wholly obtained.
For destination country Japan, always contact KVK.
Field 6.
Fill in whether cumulation applies.
Cumulation means that the product you supply...
was processed in several countries that have joined the PEM convention.
Not sure if there is cumulation? Contact KVK...
because you only fill in this field if the destination country is a PEM country.
In field 7, enter the validity period of the declaration.
This is at most 24 months from the date the declaration enters into force.
This date comes with 2 requirements.
It cannot precede the signature date by more than 12 months...
and it cannot be more than 6 months after the date of signature.
At the signature, you enter:
the place and date of the signature, name and position of the signee...
name and address of your own company, and of course, the signature.
The declaration for repeated use is now complete.
You send it to the client.
But beware: does anything change in your own process?
For example, if you start buying a product or raw material from outside the EU...
the product may lose its preferential origin.
And the declaration will no longer be correct.
Inform your clients as soon as possible.
You are required to do this.
Now, let's look at the one-time declaration.
It has fewer fields, but filling it in is almost the same...
as the repeated use declaration.
So we'll scan the fields a bit quicker.
Field 1 is the same as on the declaration for repeated use.
So, a clear product description, and potentially a numbered attachment.
Put the number of the attachment on the declaration.
Field 2 also is the same as the declaration for repeated use.
You enter 'European Union', plus, if you want, the member state.
At 3, you check the country or group of countries...
for which your client may use the supplier's declaration.
Only check countries of which you know for certain...
that the products meet the rules for preferential origin.
You only enter field 4 if you have checked the PEM countries.
At the signature, you enter: the place and date of the signature...
name and position of the signee, and the signature.
Once you've completed the declaration, print it. Do so on your own stationery.
You may send the declaration to your client on paper, or digitally.
Save the declaration as a pdf file and email it to your client.
You never have to issue a declaration of preferential origin.
It is a service you provide to your client.
But if you do, make sure the declaration is correct.
Want to know more? Visit KVK.nl/en/international.