A buyer at a plant outside the EU orders a pressure sensor, a frequency converter and a few valves from a European supplier. Shortly afterwards, a query comes back: please complete an end-user statement. Who is the end user? What will the goods be used for? And do you have an EORI number?<\/p>\n
Many buyers see such questions as red tape or even as mistrust. In fact, they are usually a legal obligation of the seller. This article explains the key terms from the buyer\u2019s point of view, so that you understand why the questions are asked and your orders go through faster.<\/p>\n
Note: This article is a general introduction and does not constitute legal advice. For binding information, contact your export control department, your customs department or the competent authorities.<\/em><\/p>\n Anyone exporting goods from the European Union is responsible for complying with export control law. This does not only apply to weapons or obviously military goods. Many civilian industrial products can also be affected if they are technically suitable for military purposes or are going to certain recipients. The exporter must therefore check:<\/p>\n This check is not a matter of courtesy. Violations can have serious legal consequences for the exporter.<\/p>\n When your supplier asks about end use, they are not checking up on you. They are protecting themselves and you from a problem that would hit you both.<\/p><\/blockquote>\n Dual-use goods are goods, software and technologies that can be used for both civilian and military purposes. In the EU, this is governed by the Dual-Use Regulation, currently Regulation (EU) 2021\/821. The listed items are set out in its Annex I.<\/p>\n This is more relevant for industrial spare parts than many people think. Depending on their technical specification, certain machine tool controllers, precision measuring equipment, special pumps, valves made of special materials or certain frequency converters, for example, may be covered. Whether a specific part is affected depends on its technical parameters, not on the product name.<\/p>\n If an item is listed, its export from the EU requires a licence. In Germany, the competent authority is the Federal Office for Economic Affairs and Export Control, BAFA for short. A licence requirement can also arise for non-listed goods if the exporter has been informed by BAFA, or is itself aware, that the goods are intended for a critical use, for example in connection with weapons of mass destruction or for a military end use in a country under an arms embargo. This is known as the catch-all rule under Article 4 of the Regulation.<\/p>\n An end-user statement, also known as an end-use declaration, is a document in which the recipient confirms who will ultimately use the goods, for what purpose and in which country. The supplier requests it to fulfil its due diligence obligations, and for exports subject to licensing it is often part of the application.<\/p>\n Have a short, factual description of your company and of the plants in which the spare parts are used ready. \u201cSpare part for the filling line in our beverage plant\u201d is a good statement. The clearer the use, the faster the check. Clarify internally who is authorised to sign end-user statements, so that requests do not wait days for a signature.<\/p>\n The origin of a product is the country in which it was wholly obtained or underwent its last substantial processing. That is not necessarily the country it is shipped from. A part that comes from Hamburg can have its origin in Japan, the USA or Italy.<\/p>\n This is relevant for trade policy, import restrictions or marking requirements. Many countries require a certificate of origin on import. In Germany, certificates of origin are usually issued by the Chambers of Industry and Commerce (IHK). In some countries the certificate must also be certified or legalised.<\/p>\n This is relevant when a trade agreement exists between the EU and the country of destination. Goods of preferential origin can then be imported at a reduced customs duty rate or duty-free. Depending on the agreement, this is proven, for example, by an origin declaration on the invoice or a movement certificate. The prerequisite is that the goods meet the rules of origin of the agreement. For merchandise the supplier buys in itself, it needs supplier\u2019s declarations from its own suppliers.<\/p>\n For buyers this means: if you want to take advantage of customs benefits, say so in your enquiry. Not every part meets the rules of origin, and the supplier first has to obtain the evidence.<\/p>\n EORI stands for Economic Operators Registration and Identification. The EORI number is an identification number that companies in the EU need to communicate with the customs authorities, for example for imports and exports. In Germany, it is applied for from the German customs administration.<\/p>\n For buyers outside the EU, the EORI number is usually not an issue, because they do not file EU customs declarations. For companies in the EU that buy goods from or deliver goods to non-EU countries, on the other hand, it is indispensable. If a supplier asks for your EORI number, they need it for the customs declaration.<\/p>\nExport control: why suppliers have to check at all<\/h2>\n
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Dual use: civilian goods with two faces<\/h2>\n
The end-user statement<\/h2>\n
What is typically requested<\/h3>\n
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What you can prepare<\/h3>\n
Origin of goods: preferential and non-preferential<\/h2>\n
Non-preferential origin<\/h3>\n
Preferential origin<\/h3>\n
EORI: the customs number for companies<\/h2>\n
Other questions you might hear<\/h2>\n