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REX system: Agreement CETA with CANADA

The REX system has been introduced since 1st January 2017 for the Generalised System of Preferences, but it is also used to simplify certification of origins of goods with respect to Trade preference Agreements.

CETA is the first bilateral free-trade agreement for which the registration for REX system is required.

With the circular 113/D of 16.11.2017, Customs Agency explains the new system of ‘REX’ registered exporters for the Generalised System of Preference (GSP), established by Implementing Regulation (EU) 2447/2015, which for the transitional phase from 1st January 2017 to 30th June 2020 will be applied gradually.

The REX system is also used to certificate origins relating Trade preference agreements. This system simplifies export customs procedures, allowing registered exporters to certificate the origin of preference on an invoice declaration or any commercial document.

After its validation, REX number is unique and used by registered exporters for all their exports, both with reference to Agreements of Preference that require application of this system and to GSP. Articles from 78 to 111 of Reg. 2447/2015 govern application of the system within the context of GSP, while art. 68, par. 1, from the same Regulation, as modified by Implementing Regulation (EU) 989/2017, provides for the registration of EU exporters for the same system, also for the purpose of using its peculiarities outside GSP. In particular, in case of Agreements of preference between EU and third countries, the declaration of origins has to be drawn up only by a registered exporter, in compliance with legislation of EU.

This can be concretely applied to the Agreement EU/Canada (ref. art. 19 of CETA Origin Protocol). This Agreement dictates that a document concerning origins can be drawn up until the conclusion of derogation period (31st December 2017), established by par. 5 of the mentioned art. 68 RE, by an exporter who has not been registered for the REX system yet, provided that this latter has the status of authorised exporter within the Union. After this date, for applying the CETA it is mandatory for the EU exporters to be registered for the REX system.