In brief
A supplier’s declaration is a statement by the supplier on the preferential or non-preferential origin of goods within the supply chain.
Contents
What is Supplier’s declaration?
With a supplier’s declaration, an upstream supplier confirms to its customer that the goods supplied meet certain rules of origin. The focus is usually on preferential origin: this is a prerequisite for an exporter being able to issue proof of preferential origin for its products, which is used to claim a reduced duty rate or duty exemption in the country of destination. The rules for supplier’s declarations within the EU are laid down in Union customs legislation.
A distinction is made between the single supplier’s declaration for a specific consignment and the long-term supplier’s declaration, which applies to deliveries of the same kind over a defined period. There are also declarations of non-preferential origin, which are relevant, for example, for certificates of origin or trade policy measures. Important: origin is determined by the rules of origin of the agreement concerned, not simply by the country of manufacture.
When purchasing spare and bought-in parts, supplier’s declarations are needed if one’s own company exports products under preferential arrangements. Incorrect declarations can lead to post-clearance demands for duty. In individual cases, the binding information is that of the customs administration; this entry does not constitute legal advice.
In practice: maintenance and procurement
Request long-term supplier’s declarations for regularly purchased parts in one batch and monitor their validity in the supplier master data. Check on a sample basis whether the description of goods and the customs tariff number in the declaration match the parts actually delivered.
Synonyms and abbreviations: supplier’s declaration · long-term supplier’s declaration (LTSD) · supplier declaration of origin · LTSD
Frequently asked questions
What is the difference between a supplier’s declaration and a certificate of origin?
The supplier’s declaration is an internal document within the supply chain with which an upstream supplier confirms the origin of goods to its customer. The certificate of origin, by contrast, is a foreign trade document that proves non-preferential origin to the authorities in the country of destination and is usually certified by a chamber of commerce and industry (IHK in Germany). The supplier’s declaration often serves as the basis for further proofs.
What is a long-term supplier’s declaration?
A long-term supplier’s declaration covers all deliveries of goods of the same kind to the same customer over a defined period. It removes the need for individual declarations for each consignment. If the origin or manufacture changes, the supplier must inform the customer without delay. Period of validity and formal requirements are governed by Union customs legislation; the current legal position is decisive.
Who is responsible for the accuracy of a supplier’s declaration?
The supplier who makes the declaration is responsible. It must be able to prove the originating status, for example through cost calculations or its own suppliers’ declarations. The customer should nevertheless check the declarations for plausibility, as it uses them for its own proofs of preferential origin. If in doubt, the customs administration can arrange for a verification at the supplier.