Navigating REX and RASFF: Hidden Pitfalls in International Trade

The Registered Exporter System (REX), a crucial mechanism for preferential trade, particularly within the European Union’s Generalized System of Preferences (GSP) and various Free Trade Agreements (FTAs). The sources also introduce the Rapid Alert System for Food and Feed (RASFF), an EU-wide system for ensuring food safety.

I. Registered Exporter System (REX)

The REX system is presented as a significant evolution in the certification of origin for goods, moving from traditional paper-based certificates to a self-certification model.

A. Core Concept and Purpose:

• Self-Certification: The REX system is a “system of certification of origin of goods based on a principle of self-certification.” Economic operators (exporters) themselves declare the origin of goods via “statements on origin.” To do so, they must be registered in a database by their competent authorities, becoming a “registered exporter” (EU Registered Exporter Scheme).
• Simplification and Efficiency: It “simplifies the process of certifying the origin of goods” and “eliminates the need for traditional certificates like Form A or EUR.1” (Empowering global trade). This reduces administrative burdens, expedites customs procedures, and leads to faster delivery times (Empowering global trade, Bright Customs).
• Preferential Treatment: The primary benefit of REX is enabling importers to claim “reduced or zero import duties” on goods with preferential origin, promoting trade with developing countries.

B. Applicability and Scope:

• EU Trade Agreements: The REX system is used by EU exporters in the context of various FTAs, including CETA (Canada-EU), Japan, the UK, and Vietnam (EU Registered Exporter Scheme, Empowering global trade). It has been progressively applied in these agreements (Guidance relating to the Registered Exporter System).
• Generalized System of Preferences (GSP): REX has been applied in the GSP scheme of the EU since January 1, 2017, progressively replacing the older system of Form A certificates and invoice declarations. All GSP beneficiary countries were expected to apply the REX system by June 30, 2020, with extensions granted until December 31, 2020, due to the COVID-19 pandemic (EU Registered Exporter Scheme).
• Overseas Countries and Territories (OCTs): Since January 1, 2020, OCTs also apply the REX system for products originating in their territories to benefit from tariff preferences in the EU (EU Registered Exporter Scheme).
• UK-EU Trade: Since January 1, 2022, EU suppliers exporting to the UK must include a statement of origin with a valid REX number for consignments valued above €6,000 / £5,400 to claim preferential duty rates. For consignments below this value, any exporter can make the statement without REX registration (Statement of Origin and Registered Exporter (REX) Number Requirements in 2022, Bright Customs). The Trade and Cooperation Agreement (TCA) between the EU and the UK also relies on declarations of origin for duty-free goods (Tariff preferences and rules of origin (EU-UK)).

C. Registration Process and Requirements:

• Application: Exporters apply to become registered exporters by filling out an application form and submitting it to their competent authorities. In the EU, this can be done electronically via the REX Trader Portal. In third countries, a signed paper copy is typically required (EU Registered Exporter Scheme, Guidance relating to the Registered Exporter System, THE PROCESS OF REGISTERING REX NUMBER).
• Required Information: The application form (e.g., Annex 22-06 of Commission Implementing Regulation (EU) 2015/2447) requires details such as exporter’s name, address, EORI (Economic Operator Registration and Identification) or TIN (Trader Identification Number), contact details, main activity (producing or trading), and an indicative description of goods (Harmonised System headings) that qualify for preferential treatment.
• Undertakings: Exporters must commit to:
• Holding “appropriate evidence of the self-certified origin” of products.
• Accepting verification of accounting and manufacturing processes by competent authorities.
• Keeping copies of statements on origin and supporting documents for at least three years.
• Assuming full responsibility for using their REX number.
• Informing authorities about any changes to registered data.
• REX Number Assignment: Upon successful registration, a unique REX number is assigned, typically composed of the country code (e.g., ‘IT’ for Italy, ‘DE’ for Germany, ‘IN’ for India), ‘REX’, and the EORI/TIN number or a string of alphanumeric characters (Empowering global trade, Guidance relating to the Registered Exporter System, Tariff preferences and rules of origin (EU-UK)).
• Validity: The registration is generally “not limited in time” unless revoked (Guidance relating to the Registered Exporter System, Kireeti Consultants). A single REX number can be used for all exports under preferential arrangements where the REX system applies (Guidance relating to the Registered Exporter System).
• Publication of Data: Registered exporter data is publicly available online, allowing economic operators to verify the validity of registrations. Exporters can choose to publish all their data or an anonymous subset (REX number, validity dates, revocation date) .

D. Statements on Origin:

• Content: A statement on origin is a declaration added by the registered exporter on commercial documents (invoice, delivery note, packing list, etc.) to identify the goods and the exporter. It must include the exporter’s REX number if the consignment value is above the threshold (e.g., €6,000 for GSP and most FTAs, €10,000 for OCTs). For consignments below the threshold, unregistered exporters can also make statements (EU Registered Exporter Scheme, Guidance relating to the Registered Exporter System, Statement of Origin and Registered Exporter (REX) Number Requirements in 2022).
• No Handwritten Signature: Generally, a handwritten signature is not required, provided the relevant FTA or regulation allows for it .
• Identification of Goods: Products must be described in detail to enable identification, and non-originating products must be clearly distinguished.
• Retrospective Application: Statements on origin can be made retrospectively, even for consignments exported before registration, provided the exporter has a valid registration at the time of making the statement (Guidance relating to the Registered Exporter System).

E. Risks and Compliance:

• Low Barrier to Entry, High Consequences: While applying for a REX number can be a “low-barrier” process with a simple form and no mandatory pre-audit or knowledge check, the financial and legal consequences of incorrect origin statements are “potentially serious” (Get REX ready).
• Post-Registration Audits: Customs authorities can and will perform post-audits after a REX number is granted to verify compliance with origin rules. Exporters must be able to substantiate the origin of their goods with supporting documentation. Failure to do so can lead to reassessments, financial penalties, reputational damage, and revocation of REX status (Get REX ready, Guidance relating to the Registered Exporter System).
• Preferential vs. Non-Preferential Origin: It is crucial to distinguish between preferential origin (for reduced/zero duties under trade agreements, based on specific criteria like tariff shift, value added, or processing rules) and non-preferential origin.
• Ongoing Compliance: Registered exporters are obligated to communicate all changes to their data and ensure continued compliance with REX conditions. Authorities regularly monitor and audit exporters

II. Rapid Alert System for Food and Feed (RASFF)

The RASFF is a distinct but equally vital EU system focused on public health and consumer protection related to food and feed.

A. Purpose and Scope:

• Food Safety Monitoring: Established in 1979, the RASFF’s objective is to achieve “a high level of protection of human life and health” by ensuring the free movement of safe food and feed within the European Community.
• Information Exchange: It enables efficient information sharing among member countries’ food safety authorities regarding food safety issues and risks.
• Hazard Coverage: RASFF covers four types of food and feed hazards: chemical, physical, biological, and allergens.

B. Operational Mechanism:

• Notification Process: When an EU member state detects a food safety risk (e.g., through inspection or laboratory results), it notifies the European Commission via the RASFF system. The Commission then disseminates this notification to other member states to facilitate rapid and coordinated action.
• Types of Notifications: Alert: “A food or feed presenting a risk is on the market and rapid action is required.”
• Information: “A food or feed presenting a risk has been identified but other members in the network do not need to take rapid action because the product has not reached their market.”
• Border Rejection: “Notification that a consignment of food, feed or food contact material has refused entry into a member state” .
• Public Access: The RASFF Portal is a public, searchable online database providing summary information on past notifications, which can be used to identify common issues or track hazards over time
• Corrective Measures: Information exchanged through RASFF can lead to product recalls, withdrawals, destruction, public information campaigns, or re-dispatch to the origin

C. Membership and Examples:

• Members: The RASFF network includes EU Member State national food safety authorities, the European Commission, EFSA (European Food Safety Authority), ESA, Norway, Liechtenstein, Iceland, and Switzerland . EFSA provides independent scientific advice on food chain risks
• Examples of Issues (India): The source provides numerous examples of issues reported in RASFF concerning spices from India, including contamination with ethylene oxide, pesticides (chlorpyrifos, anthraquinone), aflatoxins, Salmonella, and issues with allergen labelling or incorrect official certificates
• Consequences of Non-Compliance: For exporters (e.g., Indian exporters of spices), detected irregularities can lead to warnings, temporary suspension of export licenses/registrations, or even cancellation of registration certificates.
• What is the EU’s Registered Exporter System (REX)?
• The Registered Exporter System (REX) is a self-certification mechanism developed by the European Union to streamline the process of certifying the origin of goods. Instead of requiring traditional Certificates of Origin (like Form A or EUR.1), REX allows economic operators (exporters, manufacturers, traders, or re-consignors) to declare the preferential origin of their products themselves, through “statements on origin” on commercial documents like invoices, delivery notes, or packing lists. To be entitled to make such statements, an economic operator must be registered in the REX database by their competent authorities and receive a unique REX number. This system simplifies export formalities, reduces administrative burdens, and enables importers to benefit from reduced or zero import duties under various preferential trade agreements.
• When is REX registration mandatory for exporters?
• REX registration is mandatory for exporters making statements on origin for consignments above a certain value threshold. For exports from the EU to the UK, and generally within the EU’s Generalized System of Preferences (GSP) and many Free Trade Agreements (FTAs), this threshold is €6,000 (or £5,400 for UK imports from the EU). If the consignment value is below this threshold, any exporter, whether registered or not, can make a statement on origin. However, for shipments exceeding this value, the exporter must have a valid REX number and include it in the statement of origin to claim preferential tariff treatment. Splitting consignments to fall below the threshold is not permitted to avoid REX registration.
• What are the key benefits of REX registration for businesses?
• REX registration offers several significant advantages for both exporters and their international partners:
• Self-certification of Origin: Exporters can directly issue statements of origin on commercial documents, eliminating the need for third-party certificates and speeding up processes.
• Enhanced Efficiency and Faster Clearance: It reduces administrative burdens and expedites customs procedures, leading to quicker delivery times and smoother trade flows.
• Cost Savings for Importers: Clients in countries with EU preferential agreements can benefit from reduced or zero import duties, making products more competitive.
• Compliance and Reliability: It ensures adherence to EU regulations, fostering trust and transparency in international transactions.
• Multifaceted Use: Once registered, a REX number can be used for all exports under various preferential arrangements where the REX system applies (e.g., EU-Canada, EU-Japan, EU-Vietnam FTAs, EU’s GSP scheme, and trade with Overseas Countries and Territories).
• What information is required to apply for REX registration and how is it processed?
• To apply for REX registration, an economic operator needs to provide specific information in an application form (e.g., Annex 22-06 or 22-06A of Commission Implementing Regulation (EU) 2015/2447). Key details include:
• Exporter’s Name, Full Address, and Country: Including their Economic Operator Registration and Identification (EORI) number in the EU, or a Trader Identification Number (TIN) in other countries.
• Contact Details: At least one of email, fax, or telephone number is mandatory.
• Main Activity: Whether the applicant is primarily a producer, trader, or both.
• Indicative Description of Goods: A list of Harmonised System (HS) headings or chapters for goods qualifying for preferential treatment. This list is indicative; an exporter can still issue statements for products not on the list, though it might trigger verification.
• Undertakings by the Exporter: Declaration by an authorised signatory, confirming compliance with REX requirements.
• Consent for Publication: Decision on whether all registration data should be publicly available online.
• Applications can be submitted on paper or electronically via the REX Trader Portal in the EU. Competent authorities then verify the completeness and correctness of the information. Upon successful registration, the exporter is notified and assigned a REX number. The registration is generally valid indefinitely unless specific conditions (like fraud or cessation of operations) lead to its revocation.
• What are the responsibilities and potential consequences for registered exporters under the REX system?
• While REX registration simplifies the process of certifying origin, it places significant responsibilities on the exporter. They must:
• Maintain accurate records and evidence of the originating status of their goods for customs checks.
• Accept verification of their accounting and manufacturing processes by competent authorities.
• Keep copies of all statements on origin and supporting documents for at least three years (or longer as specified by agreements/national law).
• Inform competent authorities of any changes to their registered data.
• Assume full responsibility for the use of their REX number.
• Failure to accurately determine and declare the origin of goods can lead to serious consequences, including:
• Reassessments and financial penalties.
• Exclusion from preferential treatment.
• Revocation of REX status, especially in cases of intentional or negligent incorrect information or fraud.
• For the buyer/importer, it can result in the payment of full import duties, potentially applied retroactively, and severely damage commercial relationships.
• Post-registration audits are conducted by customs authorities to verify ongoing compliance and ensure that origin statements are properly substantiated.
• What is the Rapid Alert System for Food and Feed (RASFF)?
• The Rapid Alert System for Food and Feed (RASFF) is a system established by the European Union in 1979 to ensure a high level of protection for human health and life by facilitating the free movement of safe food and feed within the EU. Its primary objective is to allow EU control authorities to efficiently exchange information about identified food and feed safety risks. RASFF covers four types of hazards: chemical, physical, biological, and allergens. It enables member countries, the European Commission, and other associated bodies (like EFSA, ESA, Norway, Liechtenstein, Iceland, and Switzerland) to share urgent notifications round-the-clock, ensuring rapid, coordinated responses to potential safety issues and enabling actions such as product recalls from the market.
• How does the RASFF system work, and what are its types of notifications?
• When a food safety risk is detected in an EU member state, typically through inspections or laboratory results, the national food safety authority reports it to the European Commission using the RASFF system. The Commission then disseminates this notification to other member states, allowing them to take appropriate action. This process enables a rapid and coordinated response across the network, reducing the risk of contaminants reaching consumers.
• RASFF notifications are categorized into three main types:
• Alert: Issued when a food or feed product posing a serious risk is on the market and requires immediate, rapid action.
• Information: Used when a food or feed product with a risk has been identified, but other network members do not need to take immediate action because the product has not reached their market, or the risk is less urgent.
• Border Rejection: Notifies that a consignment of food, feed, or food contact material has been refused entry into a member state, usually due to non-compliance with EU safety standards.
• The RASFF Portal is a public online database that provides summary information on past notifications, allowing for the identification of common hazards, problematic products, or originating countries.
• What are the implications of a RASFF notification for an exporter?
• When a RASFF notification is issued, particularly for products originating from a non-EU country, it triggers a detailed procedure to address the detected issue. The concerned exporter is typically intimated and required to provide comprehensive information about the consignment, including product details, batch codes, test reports (pre-export and others), and details of raw materials and processing. The relevant authorities (e.g., SPICE BOARD for Indian spices) review this information.
• Depending on the severity and recurrence of the non-compliance, actions may be taken against the exporter:
• First Failure: A warning is issued.
• Second Failure: A temporary suspension (e.g., 15 days) on exports of the affected products may be imposed, which can also affect related certifications like RCMC (Registration-cum-Membership Certificate) or pack house recognition.
• Third Failure: Can lead to the cancellation of the exporter’s registration or recognition certificate, potentially preventing them from exporting until full compliance is demonstrated.
• These measures ensure that exporters take responsibility for product safety and adhere to the strict EU standards to protect public health and maintain market integrity.NotebookLM can be inaccurate; please double check its responses.

What is the EU’s Registered Exporter System (REX)?

The Registered Exporter System (REX) is a self-certification mechanism developed by the European Union to streamline the process of certifying the origin of goods. Instead of requiring traditional Certificates of Origin (like Form A or EUR.1), REX allows economic operators (exporters, manufacturers, traders, or re-consignors) to declare the preferential origin of their products themselves, through “statements on origin” on commercial documents like invoices, delivery notes, or packing lists. To be entitled to make such statements, an economic operator must be registered in the REX database by their competent authorities and receive a unique REX number. This system simplifies export formalities, reduces administrative burdens, and enables importers to benefit from reduced or zero import duties under various preferential trade agreements.

When is REX registration mandatory for exporters?

REX registration is mandatory for exporters making statements on origin for consignments above a certain value threshold. For exports from the EU to the UK, and generally within the EU’s Generalized System of Preferences (GSP) and many Free Trade Agreements (FTAs), this threshold is €6,000 (or £5,400 for UK imports from the EU). If the consignment value is below this threshold, any exporter, whether registered or not, can make a statement on origin. However, for shipments exceeding this value, the exporter must have a valid REX number and include it in the statement of origin to claim preferential tariff treatment. Splitting consignments to fall below the threshold is not permitted to avoid REX registration.

What are the key benefits of REX registration for businesses?

REX registration offers several significant advantages for both exporters and their international partners:

1. Self-certification of Origin: Exporters can directly issue statements of origin on commercial documents, eliminating the need for third-party certificates and speeding up processes.
2. Enhanced Efficiency and Faster Clearance: It reduces administrative burdens and expedites customs procedures, leading to quicker delivery times and smoother trade flows.
3. Cost Savings for Importers: Clients in countries with EU preferential agreements can benefit from reduced or zero import duties, making products more competitive.
4. Compliance and Reliability: It ensures adherence to EU regulations, fostering trust and transparency in international transactions.
5. Multifaceted Use: Once registered, a REX number can be used for all exports under various preferential arrangements where the REX system applies (e.g., EU-Canada, EU-Japan, EU-Vietnam FTAs, EU’s GSP scheme, and trade with Overseas Countries and Territories).

What information is required to apply for REX registration and how is it processed?

To apply for REX registration, an economic operator needs to provide specific information in an application form (e.g., Annex 22-06 or 22-06A of Commission Implementing Regulation (EU) 2015/2447). Key details include:

• Exporter’s Name, Full Address, and Country: Including their Economic Operator Registration and Identification (EORI) number in the EU, or a Trader Identification Number (TIN) in other countries.
• Contact Details: At least one of email, fax, or telephone number is mandatory.
• Main Activity: Whether the applicant is primarily a producer, trader, or both.
• Indicative Description of Goods: A list of Harmonised System (HS) headings or chapters for goods qualifying for preferential treatment. This list is indicative; an exporter can still issue statements for products not on the list, though it might trigger verification.
• Undertakings by the Exporter: Declaration by an authorised signatory, confirming compliance with REX requirements.
• Consent for Publication: Decision on whether all registration data should be publicly available online.

Applications can be submitted on paper or electronically via the REX Trader Portal in the EU. Competent authorities then verify the completeness and correctness of the information. Upon successful registration, the exporter is notified and assigned a REX number. The registration is generally valid indefinitely unless specific conditions (like fraud or cessation of operations) lead to its revocation.

What are the responsibilities and potential consequences for registered exporters under the REX system?

While REX registration simplifies the process of certifying origin, it places significant responsibilities on the exporter. They must:

• Maintain accurate records and evidence of the originating status of their goods for customs checks.
• Accept verification of their accounting and manufacturing processes by competent authorities.
• Keep copies of all statements on origin and supporting documents for at least three years (or longer as specified by agreements/national law).
• Inform competent authorities of any changes to their registered data.
• Assume full responsibility for the use of their REX number.

Failure to accurately determine and declare the origin of goods can lead to serious consequences, including:

• Reassessments and financial penalties.
• Exclusion from preferential treatment.
• Revocation of REX status, especially in cases of intentional or negligent incorrect information or fraud.
• For the buyer/importer, it can result in the payment of full import duties, potentially applied retroactively, and severely damage commercial relationships.

Post-registration audits are conducted by customs authorities to verify ongoing compliance and ensure that origin statements are properly substantiated.

What is the Rapid Alert System for Food and Feed (RASFF)?

The Rapid Alert System for Food and Feed (RASFF) is a system established by the European Union in 1979 to ensure a high level of protection for human health and life by facilitating the free movement of safe food and feed within the EU. Its primary objective is to allow EU control authorities to efficiently exchange information about identified food and feed safety risks. RASFF covers four types of hazards: chemical, physical, biological, and allergens. It enables member countries, the European Commission, and other associated bodies (like EFSA, ESA, Norway, Liechtenstein, Iceland, and Switzerland) to share urgent notifications round-the-clock, ensuring rapid, coordinated responses to potential safety issues and enabling actions such as product recalls from the market.

How does the RASFF system work, and what are its types of notifications?

When a food safety risk is detected in an EU member state, typically through inspections or laboratory results, the national food safety authority reports it to the European Commission using the RASFF system. The Commission then disseminates this notification to other member states, allowing them to take appropriate action. This process enables a rapid and coordinated response across the network, reducing the risk of contaminants reaching consumers.

RASFF notifications are categorized into three main types:

• Alert: Issued when a food or feed product posing a serious risk is on the market and requires immediate, rapid action.
• Information: Used when a food or feed product with a risk has been identified, but other network members do not need to take immediate action because the product has not reached their market, or the risk is less urgent.
• Border Rejection: Notifies that a consignment of food, feed, or food contact material has been refused entry into a member state, usually due to non-compliance with EU safety standards.

The RASFF Portal is a public online database that provides summary information on past notifications, allowing for the identification of common hazards, problematic products, or originating countries.

What are the implications of a RASFF notification for an exporter?

When a RASFF notification is issued, particularly for products originating from a non-EU country, it triggers a detailed procedure to address the detected issue. The concerned exporter is typically intimated and required to provide comprehensive information about the consignment, including product details, batch codes, test reports (pre-export and others), and details of raw materials and processing. The relevant authorities (e.g., SPICE BOARD for Indian spices) review this information.

Depending on the severity and recurrence of the non-compliance, actions may be taken against the exporter:

• First Failure: A warning is issued.
• Second Failure: A temporary suspension (e.g., 15 days) on exports of the affected products may be imposed, which can also affect related certifications like RCMC (Registration-cum-Membership Certificate) or pack house recognition.
• Third Failure: Can lead to the cancellation of the exporter’s registration or recognition certificate, potentially preventing them from exporting until full compliance is demonstrated.

These measures ensure that exporters take responsibility for product safety and adhere to the strict EU standards to protect public health and maintain market integrity.