Customers incur additional costs for incorrect REX declaration

27 February 2024

You are entitled to tariff preference via the REX system if you provide a 100% correct REX declaration. Or in other words: you are then exempt from import duties. Customs currently checks these declarations even more rigorously than before. Unfortunately, even the smallest typo/error could result in additional costs, checks or even a cancellation of this privilege. As such, it is important for you, as a shipper, to ensure that the declaration is submitted without errors.

More rigorous checks

The introduction of the REX system has simplified trade with APS countries such as Bangladesh, Pakistan, India and Vietnam. There are no issues as long as your supplier, who obviously must be registered as an exporter, provides the correct REX declaration. Unfortunately, completing these declarations is not always done properly. Customs often check this afterwards, which means you will find out about this later as well.

As a REX declaration is the responsibility of you and your supplier at all times, it is important to check it carefully before submitting the information to us. If our customs department has to submit an appeal in retrospect, it will involve extra time and money. What’s more, we know from experience that every subsequent REX application from the same party will be subject to even more scrutiny.

Real example

Allow us to share a recent, incorrect example of a shipment of clothes from Bangladesh. Here, the word ‘Union’ was missing from the REX declaration on the invoice. The result was that the tariff preference for this shipment became void and the customer had to pay 12% import duty (afterwards).

This second example is a little more complicated. Here, the invoice is created in Dubai, the country where the broker is based. The producer of the goods is in Bangladesh and the buyer is in the Netherlands. In this case, the REX declaration is on the packing list.

The packing list was created by the producer in Bangladesh – the manufacturer and supplier of the goods. Only they can create the REX declaration, using their own REX number. In addition, they have listed the Supplier (from Dubai), the Shipper (from Bangladesh, themselves), and the Buyer (from the Netherlands) on the packing list – separate from the REX declaration. This is the correct way to do it.

The only correct version

Errors often encountered by our customs declarants are:

. The REX declaration is missing

. The supplier’s REX number is listed on the invoice issued by the agent or broker

. The supplier’s signature is missing from the declaration

. Sections of (standardised) text are missing

This is the only correct text for the REX declaration:

The exporter … (Number of Registered Exporter (2), (3), (4)) of the products covered by this document declares that, except where otherwise clearly indicated, these products are of . . . preferential origin (5) according to rules of origin of the Generalised System of Preferences of the European Union and that the origin criterion met is … … (6).

Additional costs to be borne by shipper

As well as drawing up and submitting an appeal, you still have to provide the correct REX declaration as well. For this, you have to go back to the country of origin. In other words: extra tasks that you, we and your supplier could do without.

Unfortunately, we will have to pass on the additional administrative costs incurred by Ritra Cargo as a result of an incorrectly submitted declaration to the relevant shipper from now on.

If you have any questions, read our previous article on this topic, or contact our customs declarants on 010-76 71 000.