What you need to know about REX(EU Customs -Registered Exporter System)

What You Need to Know About REX and the REX Process

In the world of international trade, understanding the various schemes and certifications available can significantly streamline the customs process and reduce costs. One such important scheme is the Registered Exporter System (REX). Introduced by the European Union (EU), REX simplifies how exporters certify the origin of goods, making it easier for businesses to benefit from preferential tariff treatment under trade agreements.

If you’re involved in exporting or importing goods, here’s everything you need to know about REX and how the REX process works.

✅ What is REX?

The Registered Exporter System (REX) is a system introduced by the European Union to simplify the certification of the origin of goods. Under REX, exporters can self-certify the origin of their goods by including a specific statement on the invoice or any other commercial document.

The REX system replaces the need for a Certificate of Origin (Form A) or an EUR.1 movement certificate. This makes it easier and faster for exporters to prove the origin of their goods and claim preferential treatment under trade agreements.

🌍 Why Was REX Introduced?

The REX system was introduced to:

• Simplify the origin certification process – Exporters no longer need to rely on certificates issued by authorities.
• Reduce administrative burden – Businesses can self-certify, which reduces paperwork and processing times.
• Ensure compliance with trade agreements – The REX system helps businesses meet the rules of origin requirements under the EU’s Generalised Scheme of Preferences (GSP) and other trade agreements.

📑 How Does the REX Process Work?

The REX process involves the following key steps:

1. Registration in the REX System

• To become a registered exporter, businesses must apply to their country’s competent authority (e.g., HMRC in the UK).
• The application typically requires providing details such as:
  • Business name and address
  • EORI number (if applicable)
  • Description of the goods to be exported
  • Confirmation that the goods meet the rules of origin

Once approved, the exporter receives a REX number.

2. Self-Certification of Origin

• Once registered, the exporter can self-certify the origin of goods by including a statement of origin on the invoice or other commercial documents.
• The statement must include:
  • The REX number
  • A declaration that the goods meet the rules of origin
• Example of a statement of origin: “The exporter of the products covered by this document (REX number: [XXXXXXX]) declares that, except where otherwise clearly indicated, these products are of [country] preferential origin.”

3. Submission of the Statement of Origin

• The statement of origin is provided to the importer, who then presents it to the customs authorities to claim preferential tariff treatment.
• If the importer’s country is part of a trade agreement that recognises REX, reduced or zero tariffs may apply.

4. Ongoing Compliance

• Exporters must ensure that the goods meet the rules of origin at all times.
• Periodic audits or checks may be conducted to verify compliance with REX requirements.
• If any issues are found, the exporter’s REX status may be suspended or revoked.

🚀 Benefits of the REX System

✅ Cost Savings – Reduced or zero tariffs under trade agreements.
✅ Faster Processing – No need for certificates of origin, speeding up customs clearance.
✅ Reduced Paperwork – Self-certification reduces administrative burden.
✅ Greater Control – Exporters have direct responsibility for ensuring the origin of goods.

⚠️ Common Challenges and How to Overcome Them

🔸 Complex Rules of Origin – Make sure you understand the specific rules of origin under each trade agreement.
🔸 Incorrect Statements of Origin – Ensure the statement is accurate and includes the correct REX number.
🔸 Lack of Awareness – Train staff and ensure internal processes are aligned with REX requirements.

🏆 Conclusion

The REX system offers a simpler, faster, and more cost-effective way for businesses to certify the origin of goods and benefit from preferential trade agreements. By understanding the REX process and ensuring compliance, exporters can take full advantage of reduced tariffs and smoother customs procedures.

If you’re involved in international trade, getting registered with REX is a smart move that can enhance your competitiveness and streamline your export operations.