What is a REX Certificate?
The Full form of REX is Registered Exporter system. It is a self-certification scheme introduced by the European Union (EU) that was made effective from 1st January 2017. The scheme facilitates self-assessment of the rules of origin under the Generalised System of Preferences (GSP) and it also replaced issuance of certificates of origin by competent authorities.
The REX export system was introduced to streamline trading through the reduction of effort and cost on the part of the exporters. It was also aimed to benefit the preferential trade agreements with developing countries and the granting of unilateral tariff preferences to such countries.
Under the system, a REX certificate of origin also called as ‘statement of origin’ is to be provided by the exporters themselves. The EU allowed a system transition window of 12 months lasting through the calendar year 2017, during which exporters who had not yet registered under REX could apply and provide the certificates of origin issued by competent authorities.
From 2018, an EU GSP preferential tariff was available for consignments valued at over EUR6,000, provided it was accompanied by a statement of origin by the registered exporter.
What is the purpose of a Registered Exporter system (REX) Certificate?
The Registered Exporter system (REX) is designed to make it easier for exporters to provide a certificate of origin for their products. No longer do they need to liaise with the competent authorities for this; they can self-certify instead. This change has reduced the time and cost of shipping to the EU market.
Exporters can register under this system and issue their own certificates of origin. Here are the highlights:
- Competent authorities under the REX system are divided into two categories.
- The competent authority for administrative cooperation (ADC) acts as an interface with the EU and are the policymakers concerning EU GSP.
- The competent authority for registration (REG) takes care of the verification and registration-related tasks.
- The competent authorities must have at least one Local Administrator under them, who, in turn, creates Local Users. Exporters can approach Local Users for registration purposes.
- Under the REX system for export, an exporter can apply for registration by filling up the requisite application form. The form must be submitted to the competent authorities, who register applicants after verifying the correctness and completeness of their applications.
- A registered exporter can (and has to) inform the competent authorities about any changes in the registered information. The authorities accordingly make changes in the information stored in the REX system, based on the exporter’s disclosure.
- The registration of any exporter can be revoked from the REX system. This can be done on the exporter’s request or based on the decision of the competent authority. Revocation is generally done in case of closure of business of the exporter, or in case of any fraudulent activity on their part.
What is a REX Number?
The application for registration under REX certificate is required to be filled in the format 1C. The REX system in export has a pre-application part known as the AREX form. You can fill in your details in this form and take a printout. It has to be signed by the applicant and submitted to the Local User. The Local User cross-verifies the applicant’s information using the IEC code and exporter profile.
After which you can find your Registered Exporter System (REX) registration number as part of the registration process, a 20-digit REX number is assigned to each applicant, which begins with INREX and includes the exporter’s IE code, the alphabetical code of the Local Administrator, and numeric code for the Local User.
What is a Rex Statement?
The exporter must provide the statement of origin to the EU-based customer. It must contain all the specified details that are also indicated on the DGFT website. The statement of origin can be in English or any other EU-approved language. The statement must accompany commercial documents that identify the exporter, the buyer, and the goods traded. A statement of origin must be provided for every single consignment and remains valid for 12 months. However, a single statement can be used in case of multiple consignments if the products are non-assembled, imported in installments by the buyer, or are a part of Section XVI or XVII, or heading 7308 or 9406 of the Harmonised System of preferences.
How can one apply for the Rex registration online system in India?
In India, the Department of Commerce is the Local Administrator of India for Administrative Cooperation. Sixteen entities in the country act as Local Administrators for Registration. The name of these REGs, along with the names of their nodal officers and contact details, is available on the DGFT website.
The Local Administrators can access the REX system by logging in via their ECAS ID. They can use it to nominate and create Local Users for Registration, by logging to the sub-component T-REX system and registering the Local Users.
The Local Users for Registration provide information to exporters about the system, receive registration applications, process and verify these applications, and register them on the REX system.
They update exporters on the registration process, document applications in safe custody, recommend revocations to the Local Administrators as and when required, inform exporters about revocations, and re-register exporters.
They also carry out regular checks and audits based on the instructions of the EU member states or after obtaining consent from Local Administrators of ADC and REG.
Among Local Administrators in India are the DGFT, Textiles Committee, Silk Board, Spices Board, Tobacco Board, and several SEZs. Registered exporters have to provide a summary of the ‘statement of origin’ to the Local Users for Registration.
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