Supplier declarations for used vehicles – Not all vehicles affected in latest Customs clarification
On August 19, 2020 the German customs issued a clarification in which it is described that a complete documentation of the supply chains is necessary if customs duties are to be saved in the importing countries when exporting used vehicles. In order that a preparation of the supplier’s declarations, the proof of preference, nevertheless remains practicable, this regulation does not apply to all used vehicles.
What is a preference certificate and what is it used for?
“A supplier’s declaration for goods having preferential originating status is a declaration on the preferential origin of a good. The supplier’s declaration is a document normally applicable only in the European Union. It serves as evidence when applying for or issuing a preference document. It can also be used to apply for a certificate of origin (e.g. EUR.1).”
Konkret bedeutet das: Im Falle der Ausfuhr eines gebrauchten Fahrzeuges kann, wenn durch diesen Präferenznachweis ein präferenzieller Ursprung in der EU belegt wird, die Höhe der Einfuhrzölle positiv beeinflusst werden. Der vergünstigte Zollsatz kann bei einigen Warentarifnummern sogar gänzlich entfallen.
Where can I get a supplier’s declaration? Can I issue one myself?
“Supplier declarations, as the name implies, are issued by the supplier of goods. From a legal point of view, you are considered a supplier if you have the actual power of disposal over the goods.”
A supplier’s declaration proves the preferential origin. In the case of produced goods, the origin is documented by the calculation of the goods with a specific calculation basis and the declaration of any input materials. As a rule, the seller of the used vehicle is not the producer of the vehicle. In order to legally issue a supplier’s declaration, proof of the origin of the goods is required: the supplier’s declaration of the previous owner.
Which vehicles are affected by this rule?
In the clarification, Customs refers to Article 61 of Commission Implementing Regulation (EU) 2015/2447 of November 24, 2015 (ICIP-IA) – “As a rule, supplier’s declarations shall be submitted by the upstream supplier … as evidence of the preferential origin of a commercial good in the context of issuing or making out preferential proofs.”
However, Customs further writes that supplier’s declarations from the manufacturer are accepted for vehicles of goods heading 8703. In addition to motor homes and special snow vehicles, the goods heading 8703 also includes passenger cars in all variations. Thus, the rule applies to only about one third of the volume of used vehicles exported to third countries.