New preference system from 1 Jan 2017

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Summary
The REX scheme launches on 1
January 2017 in six countries
replacing the GSP 'Form A'
system.
GSP 'Form A' certificates will
start to be phased out and
invoice declarations will be
required so that importers can
claim GSP preference.
Importers need to ensure that
suppliers based in the affected
countries are registered with the
competent authority in the
country of export.
Failure to do so may result in a
loss of GSP benefit for the
importer meaning that the full
rate of customs duty will be
payable.
31 October 2016
Scheme to replace GSP certificates launches on 1
January 2017
What is REX?
The Registered Exporter scheme ("REX") is a system which requires exporters in GSP
beneficiary countries to make invoice declarations rather than (as currently), issuing "GSP
Form A" certificates. Exporters in affected countries will need to register with their local
competent authority, and this information will be shared electronically with EU customs
systems. Registration under the REX scheme will mean that "GSP Form A" certificates
will eventually disappear. We also understand that EU importers will be required to
validate REX numbers when making an import declaration in a similar way to how VAT
numbers are currently validated for intra-union trade using the VIES system.
Why is this happening?
REX is an IT change which has been mandated by the introduction of the Union Customs
Code ("UCC"). It is considered to be a facilitation measure by the EU Commission to
make international trade documentation electronic. It will also allow EU based traders to
export materials to GSP beneficiary countries in order for them to incorporate into
products (cumulation,) and to re-consign goods covered by GSP preference, which has
been difficult in the past.
When is this happening?
Six countries will use REX from 1 January 2017 and may, therefore stop issuing GSP
certificates from that date. The six countries are Congo, Democratic Republic of Congo,
India, Kenya, Laos, and the Solomon Islands. Between now and 2020, all GSP beneficiary
countries must implement the REX system or lose preferential access to the EU market.
What should businesses do?
Businesses that currently benefit from GSP preference when importing from the six
countries listed above should ensure that their suppliers in those countries are registered for
REX as a matter of urgency. GSP certificates are likely to disappear quickly after launch,
and as such, any imports from traders not registered under the REX scheme will not
benefit from a duty reduction when the goods arrive in the EU.
It is also important to stress that REX will not remove an importer's obligation to ensure
that goods for which preference is claimed actually meet the relevant rules of origin.
For further information on this important development, please contact any of the
specialists listed below.
Importers: Are you ready for "REX" ?
New preference system to be introduced 1 January 2017
Duty Alert
Contact
Adam Taylor Customs Senior Manager Adam,R.Taylor@uk.gt.com (0)117 305 7843
Ben Price Customs Manager Ben.D.Price@uk.gt.com (0)207 728 3426
Ilektra Sarri Customs Executive Ilektra.Sarri@uk.gt.com (0)207 728 3437
Michael Alexander Customs Executive Michael.D.Alexander@uk.gt.com (0)207 728 2532