New Trade Framework: ITA EU-CL Agreement Between the EU and Chile in Effect

Since February 1, 2025, a significant interim trade agreement—the ITA EU-CL—has been in effect between the European Union (EU) and Chile. This new arrangement replaced the previous association agreement, bringing changes in how businesses must handle the origin of their products. Under this framework, companies no longer use EUR.1 certificates and invoice declarations; instead, they must provide a certificate of origin or utilize the Importer’s Knowledge method to verify product origin.

Understanding Preferential Origin Goods

Goods shipped under this agreement may qualify for preferential tariff treatment if they demonstrate a preferential origin from either the EU or Chile. To achieve this, importers must adhere to the rules outlined in Chapter 3 of the ITA EU-CL, which governs Rules of Origin and Origin Procedures. Importers need to prove the preferential origin of goods at the time of entry.

Exporting Goods to Chile

If you export EU-origin products to Chile and want to minimize or eliminate import duties for the importer, issuing a certificate of origin is essential. This document confirms that the goods comply with the origin criteria of the ITA EU-CL and should accompany the invoice or any relevant trade documentation.

Key Reminder: Only issue a certificate of origin if you are certain that your goods meet the necessary origin rules. The text for the certificate of origin can be found in multiple languages within Annex 3-C of the ITA EU-CL, though Dutch exporters are encouraged to use the English version. Notably, exporting companies are not required to sign the certificate.

Registration Requirements for Exporters

For shipments valued above €6,000, exporters must be registered as a Registered Exporter (REX) to issue a certificate of origin. Ensure that your REX number is included in the certificate, directly following the Exporter Reference Number. Dutch exporters can complete registration through the EU Customs Trader Portal. If you already have a REX number, it remains valid for issuing certificates of origin for shipments to Chile. For goods valued below €6,000, any exporter can issue the certificate without needing a REX number.

Importing Goods from Chile

Since February 1, 2025, if you import goods from Chile, you must provide either a certificate of origin or an Importer’s Knowledge declaration that verifies the goods’ origin. Follow these steps to ensure eligibility for preferential tariffs:

• Enter ‘CL’ as the country of origin.
• Use preference code 300 for preferential origin.
• In the proof element, input N864 under ‘type’ for the certificate of origin and include the document number (such as the invoice number) alongside the date.

It is important to note that N864 is currently a temporary placeholder; this code will be updated to U123 and U124 in the future, with further updates provided as they become available.

Utilizing Importer’s Knowledge

Importers with sufficient understanding can claim preferential tariff treatment through the ‘Importer’s Knowledge’ provision, which allows them to prove compliance with the ITA EU-CL origin rules. As an importer, you bear the responsibility to substantiate the origin of the products. Retain all relevant documentation for a minimum of seven years, as failure to produce it upon request may result in liability for import duties.

If you are uncertain about your information or unable to obtain it from the exporter, it is best not to rely on Importer’s Knowledge and instead require a proper certificate of origin from the exporter.

When filing using Importer’s Knowledge via DMS, do the following:

• Indicate ‘CL’ for the country of origin.
• Use preference code 300 for preferential origin.
• Input ‘N864’ under supporting evidence and cite ‘U125’ as the identification code (for Importer’s Knowledge ITA EU-CL).

Transitional Provisions

For goods that were in transit or temporarily stored in a customs warehouse or free zone on February 1, 2025, preferential tariff treatment under the ITA EU-CL applies, provided they are accompanied by the appropriate certificate of origin and adhere to the origin rules. However, Importer’s Knowledge is not applicable in these scenarios.

Goods cleared before February 1, 2025, could still use EUR.1 certificates or invoice declarations issued under the former association agreement—assuming those documents were still valid at the time.

Staying Informed

Updates regarding origin rules under the ITA EU-CL are now available in section 200.00.00 of the Customs Handbook. Additionally, the “EU-Chile Interim Trade Agreement 2024 – Guidance on Rules of Origin” is expected to be published soon on the European Commission’s website.

For more information about registering as a REX, please visit the Registered Exporter application page. The latest Use Tariff/DTV information can be found on the Use Tariff page. If your reference date is after sFebruary 1, 2025, check this page for new tariff rates applicable to goods with preferential origin from Chile. Additional information regarding declaration codes is available in the DWU Declaration Handling section of the Customs Code. Stay connected for future updates and articles in our news overview.

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