Preferential trade agreements allow trading partners to benefit from
favorable conditions in their exchanges. These agreements can be
reciprocal or
unilateral. Reciprocal agreements reduce
tariff barriers to boost trade, stimulate
economic growth and
employment, and provide more advantages to consumers in both regions. Unilateral agreements, on the other hand, allow the EU to grant
preferential conditions to its partners without reciprocity, offering them
duty-free access to the EU market. This contributes to poverty eradication and promotes
sustainable development.
The benefits of preferential regimes established by
free trade agreements are conditional upon the presentation of a
proof of origin, which is generally required during customs clearance. Since the withdrawal of the
United Kingdom, the European Union consists of
27 Member States: France, Germany, Italy, Belgium, the Netherlands, Luxembourg, Denmark, Ireland, Spain, Portugal, Greece, Austria, Finland, Sweden, Hungary, Poland, the Czech Republic, Slovakia, Slovenia, Estonia, Latvia, Lithuania, Cyprus, Malta, Romania, Bulgaria, and Croatia. Some countries do not grant
tariff preferences to products originating from the European Union. Before exporting, it is important to check whether the products actually qualify for a
tariff preference on the
Access2Markets website of the European Commission.
The
no-drawback clause in preferential agreements prohibits the refund or non-payment of
customs duties on non-originating third-country materials, even if they have undergone sufficient transformation. This means that non-originating materials used in the production of a product must have paid the applicable customs duties in the country where the product was manufactured.
As a result, the refund or non-payment of duties on the import of non-originating products is prohibited if it is linked to the export of the finished product outside the EU. This applies, for example, when duty suspension is associated with the use of
special customs regimes. This prohibition also covers
anti-dumping duties and applies to non-originating materials used in the production of a product for which a preferential proof of origin is issued or established.
