Can a Swedish HQ Act as the Declarant for Korea-EU FTA for Polish-Manufactured Goods? Released

In the scenario described—where a Swedish headquarters (HQ) exports goods manufactured in Poland to Korea using its own Approved Exporter status—it is fully possible to apply for preferential tariff treatment under the Korea-EU FTA.

The Role of the Approved Exporter in the EU

Under the Korea-EU FTA, the party authorized to issue an 'Origin Declaration' must be an exporter or producer located within the EU. This party must be capable of determining and proving the origin of the goods, maintaining all relevant records, and serving as the subject of origin verification. The status of 'Approved Exporter' is granted by the local customs authorities to entities that satisfy these requirements. Since the Swedish HQ holds this number, it signifies that the Swedish customs authorities have officially recognized its capability to certify the origin of goods.

The EU as a Single Market Entity

The core principle is not which specific EU member state produced the goods, but rather whether the exporter declaring the origin is located within the EU and can substantiate the claim. Because the EU operates as a single market, a Swedish exporter can issue an origin declaration on commercial documents (such as an invoice) for goods produced in Poland, provided they can clearly demonstrate that the products meet the 'Polish origin' (EU origin) criteria defined by the Korea-EU FTA.

Requirements for the Swedish Headquarters

To act as the declarant for Polish-made products, the Swedish HQ must ensure the following conditions are met:

• Supplier’s Declaration: The Swedish HQ must obtain a 'Supplier’s Declaration' from the Polish manufacturer. This document must explicitly state that the products satisfy the Korea-EU FTA rules of origin and qualify as EU (Polish) originating goods.
• Record Keeping: The Swedish HQ is obligated to maintain all supporting documentation (e.g., manufacturing process maps, Bill of Materials (BOM), raw material purchase records, and production cost statements) for a minimum of five years (note: while the agreement mentions three, five is often recommended for Korean customs compliance). This is essential for potential origin verifications by either Korean or Swedish customs.

Practical Application and Declaration

If the Swedish HQ holds a valid Approved Exporter status and possesses the necessary evidence, they may include the following declaration on the invoice or other commercial documents: "The exporter of the products covered by this document (customs authorization No [Approved Exporter Number]) declares that, except where otherwise clearly indicated, these products are of Polish preferential origin (or EU preferential origin)."

Responsibilities and Risk Management

It is important to remember that the Swedish HQ assumes full responsibility as the declarant. If a verification process reveals that the goods do not meet origin criteria or if the documentation is insufficient, the Korean importer may be denied preferential duties and required to pay back-taxes. Additionally, the Swedish exporter could face penalties, including the revocation of their Approved Exporter status. Therefore, maintaining a rigorous internal system for origin management and continuous compliance is critical.