From A to Z – Everything about long-term supplier declaration
- What is a long-term supplier’s declaration?
- Why is a long-term supplier’s declaration required?
- So what is the purpose of the supplier declaration?
- Who creates supplier declarations?
- Which department prepares long-term supplier’s declarations?
- How long is a long-term supplier’s declaration valid?
- What does a long-term supplier’s declaration contain?
- What does a long-term supplier’s declaration look like?
What is a long-term supplier’s declaration?
A supplier’s declaration for goods having preferential originating status is a declaration on the preferential origin of goods. The supplier’s declaration is a document that can normally only be used in the European Union. It is used as proof when applying for or issuing a preferential proof of origin. It can also be used to apply for a certificate of origin (e.g. EUR.1). The long-term supplier’s declaration differs from an individual supplier’s declaration in that it can be valid not only for one delivery but for a period of up to 24 months.
Why is a long-term supplier’s declaration required?
Since the European Union has a preferential agreement with very many countries, customs duties are usually very low or even eliminated altogether. However, the prerequisite for this is proof of preferential origin for the goods.
So what is the purpose of the supplier declaration?
If you can prove this by means of the single supplier’s declaration or a long-term supplier’s declaration, you have already created the basic basis. In this way, statements can then be made about preferences for the products you have produced yourself or for the merchandise. Now all that remains is to prove that your product complies with the respective rules of origin.
Who creates supplier declarations?
Supplier declarations are, as the name suggests, issued by the supplier of goods. From a legal point of view, one is considered a supplier when one has the actual power of disposal over the goods. A long-term supplier’s declaration can normally only be issued by a supplier established within the EU for goods movements within the EU.
Which department prepares long-term supplier’s declarations?
First and foremost, most companies offer the opportunity to make contact through distribution or sales. However, the import/export department as well as the accounting department can also be possible contact points. There is no legal regulation or norm as to who within a company is responsible for the exhibition.
How long is a long-term supplier’s declaration valid?
Legally, since 01 May 2016, a maximum validity period of 24 months applies. Due to an amendment valid in June 2017 (EU-VO 2017/989) the close connection between the date of issue and the start date of validity was removed:
- Date of issue of the long-term supplier’s declaration
- Date from when the validity period of the long-term supplier’s declaration begins (starting date)
- The period between the date of issue and the start date must not exceed 6 months
- For long-term supplier’s declarations issued retrospectively, the starting date may not be more than 12 months before the date of issue
- End of validity period – the date must not be more than 24 months after the start date
- Shorter periods of validity are possible – in practice, the calendar year is often used as a reference
What does a long-term supplier’s declaration contain?
The requirements to be observed when preparing a declaration of evidence with preference are described in the Implementing Regulation (EU) 2015/2447 with reference to Article 64(1) of the Customs Code. The official templates can be found in Annex 22-15 (supplier’s declaration) and 22-16 (long-term supplier’s declaration) of this Regulation. The Directorate General of Customs makes these annexes available as 1:1 copies in three languages on its website under “Texts of supplier’s declarations“.
What does a long-term supplier’s declaration look like?
The layout and possible additions by article lists are not fundamentally predetermined compared to the wording. Here there is a leeway, which is also needed in practical application. However, when issuing a certificate, the origin or preferential origin must be correctly indicated. You can read here about the consequences of false statements about preferences, for example at customs.