Tariff preference
Reduction or elimination of customs duties granted to goods originating from countries benefiting from trade agreements with the EU.
Tariff preference refers to the reduction or elimination of normally applicable customs duties, granted to goods originating from countries or territories with which the EU has concluded preferential trade agreements or to which it grants unilateral favourable treatment.
The main sources of tariff preferences are: bilateral free trade agreements (FTAs) (Canada-CETA, Japan-JEFTA, South Korea, etc.), association agreements (Turkey, Mediterranean countries), economic partnership agreements (ACP countries), and the Generalised System of Preferences (GSP) for developing countries.
To benefit from the preference, the importer must demonstrate the preferential origin of goods using an appropriate proof: EUR.1 certificate, origin declaration on invoice, EUR-MED movement certificate, or statement on origin under the REX system. Origin rules vary by agreement and product.
Tariff preferences represent a major economic stake: they can reduce duties by several percentage points or eliminate them entirely. Companies that neglect to use preferences to which they are entitled suffer an avoidable customs surcharge, often estimated at millions of euros for a large company.