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Switch to REX system in Bangladesh, Vietnam and Cambodia

Switch to REX system in Bangladesh, Vietnam and Cambodia


Do you import goods from a GSP country? In that case, you must have heard about the REX system. In this system, your overseas supplier has to register as an exporter so you continue to be eligible for tariff preference. The REX system is a replacement for the current Form A. This year, suppliers in, amongst others, Bangladesh, Vietnam and Cambodia will have to make the switch to the new system. However, only a few of them have done this so far.


REX system facilitates trade

Thanks to the Form A, you can claim tariff preference if you import goods from GSP countries. Suppliers do have to request this form from the responsible authorities in the country in question before every shipment. This causes a lot of unnecessary time loss.


The REX system makes exporting easier for suppliers. Each exporter that registers will receive a personal REX number that they can use to export goods. This number should be stated on the so-called statement on origin. This is an item on the invoice stating that the exported goods originate from a GSP country. This eliminates the need to request Form A.


Eventually, all exporters from GSP countries will have to switch from Form A to the REX system. This switch will be completed on 20 June 2020 at the latest. From then on, the Form A will no longer be valid.


Registering as an exporter in Bangladesh, Vietnam and Cambodia

The Export Promotion Bureau (EPD) is implementing the switch from Form A to the REX system in Bangladesh. This authority is in charge of certification in this country. Cambodia and Vietnam are also making the switch from Form A to the REX system. In Cambodia, exporters should register with the Ministry of Commerce (MOC). In Vietnam, they should contact the Vietnam Chamber of Commerce and Industry (VCCI). Once an exporter is registered, they can no longer use Form A.


Completing the registration in 2019

It is important for your supplier to register with the appropriate authority in their country before the end of this year. If this does not happen, you will no longer be able to claim a reduced or zero rate for tariffs from 2020. Your supplier should be aware of this.


So far, however, we have not seen many REX numbers on invoices. That is why we have asked our agents to (once more) make the suppliers aware of this. We recommend you contact your supplier about this matter as well.


If you have any questions about the switch to the REX system, feel free to contact us.


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