EU–Mercosur agreement in practice: how Polish exporters can benefit from tariff preferences in South America?

Before an exporter begins assembling the documents, it must first determine whether its goods can in fact be considered as originating in the European Union. This is a key concept throughout the agreement. Under its provisions (Article 3.2), a product may acquire that status in three cases:

• when it has been wholly produced in the EU,
• when it has been produced exclusively from raw materials and components that also originate in the EU, or
• when materials originating outside the EU were used in its production, but specified conditions were met. What conditions? That depends on the particular product and is described in Annex 3-B to the agreement. Most often, the product must have undergone a change in tariff classification (a so-called change of tariff heading), a specified processing operation must have been carried out, or the value of the materials used from outside the EU must not exceed a set limit.

What if the materials from outside the EU do not meet these detailed requirements? This is where the so-called tolerance rule comes in: if the total value of those materials does not exceed 10% of the final product’s price (and none of the weight or value limits in the Annex have been exceeded), the product may still be considered EU-originating. Note: separate, more detailed tolerance thresholds apply to textile products.

The agreement also introduces an interesting possibility known as bilateral cumulation of origin. It may sound complicated, but the idea is simple: materials originating in Mercosur countries that are used to produce goods in the EU (and vice versa) may be treated as though they originated in the place where the finished product is made. There is one condition: the processing must be sufficient, meaning that it must go beyond the simple operations listed in Article 3.6 of the agreement. What does this mean? Packaging alone, simple mixing of ingredients, ordinary polishing, or uncomplicated assembly are not enough to change the origin of a product. A more advanced manufacturing process must take place.

How to prepare a statement on origin?

Once it is clear that the goods qualify as EU-originating, it is time to deal with the formalities. In trade with Mercosur, EU exporters may use only one type of proof of origin: a statement on origin. Its prescribed form is set out in Annex 3-C to the agreement and applies from the start of the agreement’s provisional application.

The wording of the statement is strictly prescribed: it cannot be freely amended or improved. Where should it be placed? On an invoice, a shipping specification or another commercial document (for example, a pro forma invoice or packing list). It may be handwritten, printed or typed. The document containing the statement may also be sent electronically, which is a significant practical convenience. It is important that it include the name and full address of both the exporter and the recipient, as well as a sufficiently detailed description of the goods to allow them to be identified unambiguously.

REX system: when is registration required?

A key element of the statement is the so-called exporter’s reference number. This is where an important threshold arises: EUR 6,000. If the value of the goods shipped does not exceed this amount, any exporter may issue the statement without registering in the special REX system (short for Registered Exporter System). Naturally, the goods must meet all the origin requirements described above. For shipments exceeding EUR 6,000, however, registration in REX becomes mandatory and the exporter must enter its valid REX number in the statement.

The good news is that REX registration is a one-off process. Moreover, if a company already has a REX number assigned in connection with other EU trade agreements, it may also use that number for trade with Mercosur; there is no need to obtain a separate one. In Poland, REX registration is handled by the Poznań Chamber of Tax Administration (Central Registration Department).

Exporter calendar: key deadlines

The statement on origin is valid for 12 months from the date on which it is made. That date is the date entered into the statement itself. If no date is expressly stated, the date shown on the document on which the statement appears (for example, the invoice) may be used. Within those 12 months, the importer must submit the statement to the customs authorities of the importing country. A statement submitted after the deadline may be accepted only in exceptional circumstances or where the goods were presented to the customs authorities before the deadline expired, in particular under a special procedure. The statement itself may be made at the time the goods are shipped or even afterwards. The importer may apply for preferential (that is, reduced) customs duty not only at clearance but also retrospectively, up to two years from the date of importation. The condition is that the statement on origin is made and submitted within the same two-year period.

What about record-keeping? The exporter must retain a copy of the statement on origin and all documents confirming the goods’ status for at least three years from the date on which it was made. The importer, in turn, must keep the documents for three years from the date of importation of the product.

What if the customs authorities have doubts?

The customs authorities of the country to which the goods are exported may initiate a verification procedure on the basis of a risk analysis, as part of a random check, or if they have doubts about the authenticity of the statement or the actual origin of the goods. What does this look like in practice? The customs authorities of the importing country contact those of the exporting country and ask them to investigate the matter. The latter may then request any evidence from the exporter, inspect its accounting records or carry out other checks. If, within 10 months after the request was sent, the authorities of the exporting country have not responded or the information provided is insufficient, the customs authorities of the importing country may refuse to grant the tariff preference. Importantly, this may happen even if the exporter itself has cooperated fully but its customs authority failed to meet the deadline. The 10-month period may be extended if both sides agree, especially where there are many verifications or they are particularly complex.

What could Polish companies gain?

Trade between Poland and the Mercosur countries was worth approximately EUR 4 billion, with the data covering trade in goods in 2024 and services in 2023. The agreement provides for the gradual elimination of tariffs on 91% of goods exported from the EU to Mercosur. Who stands to gain the most? Above all, exporters of machinery and electrical equipment: in 2024, exports from Poland amounted to EUR 449 million, while base tariff rates reached 14-20%. Manufacturers of transport equipment also have significant potential (EUR 77 million in exports and base tariff rates of 14-35%), as do the chemical and pharmaceutical sectors and manufacturers of rubber and plastic products (base tariff rates of 14-18%). For Poland’s agri-food sector, which exports goods worth EUR 72 million and previously faced tariffs of 27-55%, the agreement provides for reductions. Tariff-rate quotas for selected sensitive products imported from Mercosur into the EU are a separate mechanism.

It is also worth noting that the agreement contains a so-called safeguard clause. This means that if preferential imports from Mercosur begin to cause serious harm to European industry (including Polish industry) or threaten to cause such harm, the EU may temporarily suspend or withdraw the tariff preferences.