Export declaration

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Export declaration is a generally accepted international special document that can confirm the legality of the procedure for transporting goods, its compliance with all established rules and is issued at the time of export customs clearance before the goods are exported. It notifies the customs authority of the carriage across the state border to confirm the zero rate of VAT. The export declaration allows the importer to confirm the declared value of the goods during the customs clearance of imports, and the exporter - the document must contain all the necessary information about the product. The export declaration must be issued by the seller of the goods or the buyer. The buyer usually transfers his obligation to issue an export declaration to his freight forwarder or carrier. Firms constantly exporting goods are generally authorized customs agents. who make export declarations on their behalf.

Export Declaration Functions

The main functions of the export declaration, based on its definition:

  • Confirmation of the legality of the transaction
  • Notification of the customs authority on the implementation of the procedure
  • Confirmation of zero rate of value added tax
  • Providing the customs authority with all necessary information about the goods being transported.

Details

The document must contain the following information [1]:

  • Seller details
  • Buyer Details
  • Details of the carrier and used transport
  • Country of origin
  • Destination of goods
  • Quantity of goods
  • Customs value of goods
  • The name of the customs office in which the registration of goods will take place
  • Quota and other information about the conditions of the transaction.

Removing goods from the customs territory of the EAEU, there are some important points [2].:

  • Deadlines for filing the declaration. The export customs declaration is submitted before the goods are exported from the territory of the Customs Union.
  • Submission of information about the goods. Each declaration contains information about goods from one consignment undergoing the same customs clearance operation. Products from the same batch that fall under different clearance procedures are indicated in a separate declaration for each procedure.
  • The quantity of goods declared in each document cannot exceed 1000 positions.
  • Requirements for filling. Export declaration columns should be filled out without errors and corrections.

Export Declaration (EX-1)

An export declaration of the EX-1 format is a document that can be drawn up either by the consignor himself or by the carrier company on the basis of documents for cargo (invoice, packing list) in one of the numerous customs agencies on the way of transportation of goods. The export declaration must first be “opened”, that is, it must be registered in the EU electronic customs system, and then “closed” at the moment when the cargo leaves the territory of the European Union, which also happens in the electronic system. At the time the goods cross the border or carnet tir registration, the export declaration is closed. For this purpose, a printed copy of the export declaration with a bar code and an individual number of the export shipment is provided to the customs. This fact allows the buyer of the goods to avoid paying intra-European VAT (VAT).

Export Declaration (EX-1) - a type of SAD (Single Administrative Document) - a single document that is used in the EU for export, import and transit procedures for the movement of goods [3].

Different EU countries have developed different practices in the context of export declarations. For example, in Italy, senders often require the opening and closing of an export declaration in Italy, despite the fact that it may be closed in other EU countries along the way, for example, in Poland. If the goods are produced in one EU country, then the EX-1 export declaration may be “opened” at any customs agency of that particular country or in another EU country, but only if the customs agency in another EU country has power of attorney from the sender to conduct operations with the customs declarations of the sender.

Examples of Export declaration

  • A commercial invoice is a document required by customs to determine the true value of the goods being exported. It must include details such as the name and address of the seller and buyer, description of the goods, quantity, price, and packing information.
  • A certificate of origin is a document providing proof of the origin of the goods being exported. It is issued by a competent authority of the exporting country and must include the name of the country, description of the goods, and the name of the manufacturer.
  • An export license is a document issued by the government of the exporting country which certifies that the exporter has permission to export the goods. It must include details such as the name and address of the exporter, the name and address of the importer, the type of goods being exported, and the quantity of the goods.
  • A bill of lading is a document issued by the carrier or freight forwarder which confirms receipt of the goods being exported. It must include details such as the name and address of the shipper and consignee, the type of goods being shipped, the quantity, and the estimated weight.
  • A packing list is a document issued by the exporter which lists the contents of the exported package. It must include the description of the goods, the quantity, and the weight of the package.

Advantages of Export declaration

The export declaration has a number of advantages, including:

  • It helps to identify the goods being transported and the value of the goods. This helps the customs authority to easily assess the applicable taxes and duties.
  • It helps to ensure that the goods are legally exported and comply with the relevant regulations.
  • It helps to prevent the illegal export of goods and protect the interests of the exporting country.
  • It provides evidence that the goods have been properly declared and that any taxes or duties due have been paid.
  • It helps to protect the interests of the buyer by ensuring that they are receiving the goods they have purchased.
  • It helps to prevent the under-declaration of goods and ensures that the correct customs duties are paid.

Limitations of Export declaration

Export declarations have certain limitations that should be taken into account. These include the following:

  • The export declaration must be certified by a customs authority, which can be a time-consuming process.
  • Export declarations are usually only valid for a specific period of time, usually up to six months.
  • An export declaration is only valid for the goods it covers and may not be applicable to other goods.
  • The export declaration must be in accordance with the applicable laws and regulations of the country of origin and destination.
  • Export declarations must be accurate and complete in order to be accepted by the customs authorities.
  • The information on the export declaration must be consistent with the information on other documents and the goods in question.
  • The exporter is responsible for the accuracy of the information on the export declaration.

Other approaches related to Export declaration

An export declaration is a generally accepted international special document that can confirm the legality of the procedure for transporting goods, its compliance with all established rules and is issued at the time of export customs clearance before the goods are exported. Other approaches related to export declarations include:

  • It helps to control the export of goods and ensure that it is done in compliance with all the relevant laws.
  • It also helps to ensure that the exporter pays the appropriate taxes and duties.
  • Export declarations are used to determine the value of exported goods and therefore help to ensure that the proper duties and taxes are paid.
  • It helps to ensure that the goods are not smuggled out of the country in violation of the law.
  • It helps to identify the origin of the goods and ensure that they are not counterfeit or illegal.

In summary, export declarations are a necessary document for international commerce as they help to ensure that the goods are exported legally and that the appropriate taxes and duties are paid. They also help to ensure that the goods are not smuggled out of the country and are not counterfeit.

Footnotes

  1. ↑ Hardy R. (2019), p. 3
  2. ↑ Harlaar M., Ouwehand M., Otto de Leeuw (2005), p. 18-19
  3. ↑ Seyoum B. (2008), p. 353


Export declaration — recommended articles
Import declaration — Consular Invoice — Shipping note — Ultimate consignee — Dispatch note — Acknowledgement of receipt — Certificate of origin — Export license — Customs clearance

References

Author: Valeriia Nezdolii

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