CUSTOMS & EXCISE DIVISION

EPA AWARENESS AND

SENSITIZATION PROGRAMMEFOODS AND BEVERAGE SECTOR

23 MARCH 2011

PREFERENCE CONDITIONS

Paragraph 1 of Annex II of the EPA provides that customs duties of the EC shall be entirely eliminated on all products originating in a CARIFORUM State, except those of Chapter 93 of the Harmonized System, upon the entry into force of EPA.

THE AIM OF PREFERENCE

TO GIVE A COMMERCIAL ADVANTAGE TO INDIGENOUS PRODUCTS:

NATURAL RESOURCES

GROWN OR WHOLLY PRODUCED

SIGNIFICANT MANUFACTURING PROCESS

BENEFITS OF PREFERENTIAL ORIGIN

MAKES CARIFORUM ‘ORIGINATING’ GOODS MORE

COMPETITIVE

PREFERENCE CONDITIONS

Exported goods must meet the rule of origin

Direct Transportation conditions must be met

RULES OF ORIGINAnnex II to Protocol I – Article 6 The following products shall be considered as originating in the

CARIFORUM States:

products wholly obtained in the CARIFORUM States within the meaning of Article 6 of this Protocol;

For example:

(a) mineral products extracted from their soil or from their seabed;

(b) fruit and vegetable products harvested there; (c) live animals born and raised there; (d) products from live animals raised there;

RULES OF ORIGINAnnex II to Protocol I – Article 7

The following products shall be considered as originating in the CARIFORUM States:

Products which are not wholly obtained are considered to be sufficiently worked or processed when the conditions set out in the List in Annex II are fulfilled.

RULES OF ORIGIN

SUMMARY OF ‘RULES OF ORIGIN’ AS DETAILED IN THE LIST TO ANNEX II TO PROTOCOL I OF THE EPA

Wholly Produced

the value of any materials used >= 15%

of the ex-works price of

the product

the value of any materials used >= 30%

of the ex-works price of

the product

the value of any

materials used >=

40% of the ex-works

price of the product

the value of any materials used >= 50% of the ex-works price of the product

Inputs from a particular Chapter

Arrack – 5% by volume

Change of Tariff Heading

Chapters Chapters Chapters Chapters Chapters Chapters Chapters Chapters

1 3 4 20 6 16 (1) 22 15 2 16 8 13 19(10) 17 3 17 18 4 18 20 5 19 21 6 20 23 7 22 25 8 9 10 11 12 14 15 20 21 22 23

INSUFFICIENT WORKING OR PROCESSING Article 8 of Protocol I provides the operations which shall

be considered as insufficient working or processing to confer the status of originating products, whether or not the requirements of Article 7 are satisfied

Examples: (a) operations to ensure the preservation of products in

good condition during transport and storage; (b) breaking-up and assembly of packages; (c) washing, cleaning; removal of dust, oxide, oil, paint or

other coverings; (d) ironing or pressing of textiles; (e) painting and polishing operations;

‘EX’ RULE

‘EX’ means the rules listed in columns 3 and 4 of the List to Annex II are exclusive to the goods described in column 2

‘EX’ MEANS EXCLUSIVE

DIRECT TRANSPORT

Direct transport The preferential treatment provided for under the Agreement

applies only to products which are transported directly between the territory of the CARIFORUM States and the EC Party without entering any other territory.

Products constituting one single consignment may be transported through other territories with, trans-shipment or temporary warehousing in such territories, provided that they remain under the surveillance of the customs authorities in the country of transit or warehousing and do not undergo operations other than unloading, reloading or any operation designed to preserve them in good condition.

MOVEMENT CERTIFICATEEUR I FORM The Movement Certificate EUR.1 Form is a

declaration for products having preferential origin status that is needed for shipments to the EC.

The administration of the Movement Certificate EUR 1 Form is governed by national legislation to give effect to the EPA Agreement, in particular, Protocol I, and shall be issued by the Comptroller of Customs & Excise

FREE ZONES Article 38 CARIFORUM States shall take all necessary steps to ensure

that products traded under cover of a proof of origin and which in the course of transport use a free zone situated in their territory, are not substituted by other goods and do not undergo handling other than normal operations designed to prevent their deterioration.

By means of an exemption to the provisions contained in paragraph 1, when originating products are imported into a free zone under cover of a proof of origin and undergo treatment or processing, the authorities concerned shall issue a new Movement Certificate EUR.1 at the exporter's request, if the treatment or processing undergone complies with the provisions of this Protocol.

COMPLETION OF THE FORM

The EUR.1 has to be filled in by the exporter (or his representative).

The Form is one (1) of the supporting documents of the “Export Declaration C82” submitted to the responsible Customs & Excise Office.

In order to confirm the origin of the goods, supporting documents such as a supplier’s declaration may also be presented to the Customs & Excise Office

COMPLETION OF FORM

The list of the Customs & Excise Offices shall be published on the official Web-site of the Division and forwarded to the TTMA, TTCC and Broker’s Board

The list of the Approved Printers shall be published on the official Web-site of the Division and forwarded to the TTMA, TTCC and Broker’s Board

EXPORTER’S RESPONSIBILITY

Ensure that all information provided is accurate:Ensure that the details on the EUR 1 Form is

the same as that of the invoiceEnsure that the Exporters Declaration is

completedEnsure that an original signature is placed in

box 12 of the Form and the Exporters Declaration

PROCESSING OF THE EUR 1 FORM

The Proper Officer will check the details of the Form against the invoice (and other supporting documents). In particular, he/she shall check whether the space reserved for the description of the products has been completed in such a manner as to exclude all possibility of fraudulent additions.

Upon satisfaction, the Proper Officer will assign an official number to the Form and place his/her signature and stamp in box 11 of the Form

PROCESSING OF THE EUR 1 FORM

The Stamping of the document means:(1) The document is destined for the

EC(2) The Form has been correctly

completed(3) There is no indication that the

goods do not qualify for preference The Stamping of the Form does not:

(1) Verify that the goods meet the rule of origin and thus qualify for

preference

ADDITIONAL INFORMATION

Verification takes place upon request to the Comptroller of Customs & Excise by the Customs Authority of the EC when page 2 of the EUR I is completed

The Comptroller shall take any steps necessary to verify the originating status of the products and the fulfilment of the other requirements of this Protocol. For this purpose, the Comptroller shall have the right to call for any evidence and to carry out any inspection of the exporter's accounts or any other checks considered appropriate

THANK YOU

ANY QUESTIONS?

NO?

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