Preferential origin is the status that allows goods to enter the EU at a reduced or zero duty rate under a trade arrangement, such as the Deep and Comprehensive Free Trade Area within the EU-Ukraine Association Agreement.
In trade practice
To claim preference, the importer must hold valid proof of origin, typically a movement certificate EUR.1 or an origin declaration from a registered exporter. The goods must also satisfy the product-specific origin rules and the direct transport condition of the relevant agreement. A frequent error is failing to retain the supporting production and sourcing records that customs may request to verify the claim. If the claim is rejected, the full standard duty becomes payable.
In a specification
A supply contract may require the seller to provide a valid EUR.1 or origin declaration for each shipment and to retain the underlying manufacturing records for the period specified by the agreement.