EUR.1 certificate for exports to Ukraine?

Question

My company manufactures and distributes engine oils and automotive chemicals. An existing customer, based in Ukraine, have asked we now provide either a EUR.1 certificate, in addition to the country of origin document, or alternatively we are being asked to be a “recognised” UK exporter, endorsed by HMRC, which would allow us to provide a commercial invoice with relevant details in lieu of issuing the EUR.1.

Is this correct?

Answer

Hi there Gavin,

I am a little confused as to why they have asked you to potentially produce an EUR1 though, as, so far as I am aware, Ukraine is not part of the EUR1 preference system (see HMRC notice 828, section 1). Having said that, EUR1s can be issued retrospectively only the procedure is slightly different to normal (see HMRC notice 827, section 3.11).

Being an ‘approved exporter’ will effectively simplify the procedure and, yes, could substitute the need for an EUR1 in ordinary circumstances (See HMRC notice 827, section 5) and so I would recommend having a read on this to see whether it would be worth applying for in any case.

If they’ve asked for it, then they are probably correct in what they are saying and they do need what they have asked for but without asking them directly it will be difficult to know why; this is often a big problem that follows having such a vast range of importing customs procedures around the world.

This link may be of some use for some country specific info: http://madb.europa.eu/madb/datasetPreviewFormIFpubli.htm?datacat_id=IF&from=publi

You will need a little time whichever option you go for, so it would be worth asking them how long you have to comply with their requirements – but I tend to think should be OK.

Simon

Answer

Hello Gavin,

Sometimes the origin of your goods can be disputed by authorities for those claiming preferential import origin status, so they look for other means of trusted endorsement . The EUR1, is as a ‘movement certificate’, it allows importers in certain non EU countries to import goods at a reduced or nil rate of import duty under trade agreements between the EU and beneficiary countries The Chamber international – www.chamber-international.com/ – is authorised to issue EUR1 certificates and gives good advice to exporters and importers.

However if you are still stuck going forward Customs Corporate Services works in logistically difficult areas finding mechanisms to overcome obstacles.

Should you wish please drop me an email and we can discuss further.

Regards

James Bolland

Answer

Hi Gavin, the Free Trade Agreement (FTA) between EU and Ukraine was signed last year and came into force on 1st January 2016. Therefore it is understandable that your customer in the Ukraine is asking if you can produce and EUR1 Certificate. You need to check the FTA to establish the qualification rules for engine oils and automotive chemicals before issuing the EUR1 Form. If you can meet the rules relating to these goods you can obtain the form either via HMRC in Salford or from a Chamber of Commerce or Registered Shipbroker. The “recognised” UK exporter bit refers to the possible Export Approval Number you can obtain from UK Customs which replaces EUR1 Form when sending qualifying goods to EU FTA countries – the EUR1 can then be replaced by a signed invoice statement quoting the authorisation number. You apply for the Export Approval Number to HMRC on form C&E1454. It is not easy or quick but can save time and money in the long run. If you need further guidance please contact me sandras@strongandherd.co.uk

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