4. Outbound - Preferential origin Introduction Preferential origin of an outbound product becomes relevant where the customer requests a proof of preferential origin for an outbound shipment. With such a proof, the product can be imported into the country of destination at a lower (often 0%) import duty rate under a trade agreement between the EU and that country. Before performing an assessment, CS identifies: the product and quantity concerned; the country of destination; and the trade agreement under which the preferential origin is to be assessed. Whether VTTI can facilitate a proof of preferential origin depends on the destination and the trade agreement concerned. Requests are assessed case by case by the customs specialist at the terminal, who checks which proof of origin is required under the relevant trade agreement. This section only applies where the customer requests VTTI to make out or obtain a proof of preferential origin for an outbound shipment. Where the customer makes out a proof of preferential origin itself, this falls outside the scope of this procedure. In that case, VTTI has no role in the origin assessment or the proof of origin, bears no responsibility for it and performs no checks. Required information and documentation It is the responsibility of the customer to provide the terminal with the supporting information and documentation to substantiate a preferential origin claim. If insufficient information is provided, VTTI will not issue or request any proof of origin. VTTI keeps a record of all supporting evidence provided by the customer. For product originating in the EU, the supporting documentation is a supplier's declaration (SD) or a long-term supplier's declaration (LTSD). In this signed declaration, the supplier of the product confirms that the goods originate in the EU under the rules of origin of the relevant trade agreement. An LTSD covers all shipments of the product during a specified period of up to 24 months. The official template for the relevant trade agreement must be used. Upon receipt of an SD or LTSD, CS checks: whether the country of origin is mentioned for each parcel; whether all combinations of CN code and product description that may be dispatched under the trade agreement are covered by a valid SD or LTSD. If not, CS requests the missing declaration from the customer as soon as possible; whether the SD or LTSD is still valid; whether the correct wording for the relevant trade agreement is used. This is checked upon receipt of each new or renewed declaration; whether the declaration is signed. The declaration must bear a handwritten signature. However, where both the declaration and the invoice are drawn up electronically, the declaration may be electronically authenticated, or the supplier may give a written undertaking accepting full responsibility for each declaration that identifies it as if it had been signed by hand. CS stores the SD or LTSD in the Document Management System (part of VTTI's ERP) with a reference to the respective parcel(s), and records the relevant document data in the Cargo Documents module in ERP. The latest version of each declaration is always kept on file. Goods leaving the terminal unchanged Where the goods leave the terminal unchanged, VTTI relies on the SD or LTSD recorded for the relevant inbound parcel(s). CS verifies that the outbound goods can be traced to the relevant inbound parcel(s) and are covered by the available documentation. A load is only eligible for a proof of preferential origin if all parcels included in the load are of preferential origin under the relevant trade agreement. For shipments to the UK under the TCA, this means that only parcels of EU or UK origin can be included. If a parcel of any other origin is included in the load, for example Norway, no proof of preferential origin can be issued, even if supporting documentation for that parcel is available. In case of doubt, CS reaches out to the customs specialist at the terminal. Goods blended or processed at the terminal Where the goods have undergone blending or processing at the terminal, the preferential origin of the resulting product must be assessed under the relevant trade agreement. This assessment is based on the information provided by the customer in combination with the information available in VTTI's systems. The customs specialist at the terminal performs the assessment based on: the relevant product-specific origin rule included in the FTA; the originating status of the input materials; and the operations performed at the terminal. Proof of preferential origin Where the originating status of an outbound product has been established, the customs specialist at the terminal determines which form of proof may be used under the relevant trade agreement and whether VTTI is entitled to issue, make out or facilitate that proof. VTTI will only issue, make out or facilitate a proof of preferential origin where: the originating status of the product has been established and substantiated; the required form of proof is permitted under the relevant trade agreement; the relevant formal requirements are met; and the proof can be linked to the relevant outbound product, quantity and shipment. Where VTTI makes out a statement on origin, it does so in its own name, stating VTTI's REX number (Registered Exporter number). In that case, the customer provides VTTI with all supporting documentation required to prove the origin of the product upon request, for example in the event of a verification by the customs authorities. Where a proof must be issued or endorsed by a customs authority or another competent body, VTTI may facilitate the application based on the completed origin assessment and the available supporting documentation. Where no proof of preferential origin can be issued, for example because not all parcels in the load are of preferential origin, the customer may request a Terminal Origin Declaration. A Terminal Origin Declaration is not a proof of preferential origin and cannot be used to claim preferential tariff treatment. Recording and retention The origin assessment, its outcome and the supporting documentation are retained as part of the origin audit trail. Any proof of origin issued, made out or facilitated for the outbound shipment is stored in the Document Management System and linked to the relevant parcel or shipment. CS records the relevant document data in the Cargo Documents module in ERP. Records are retained for at least seven years. Follow-up and escalation Any doubt regarding any of the following must be resolved before preferential origin is documented: the relevant trade agreement; the originating status of the input materials; the applicable origin rule; or the required proof. In case of doubt, CS reaches out to the customs specialist at the terminal. Where the matter is complex, has a potentially material financial or compliance impact or requires engagement with a competent authority, the customs specialist requests support from CGT. VTTI will not issue, make out or facilitate a proof of preferential origin while material concerns regarding the originating status of the product or the supporting documentation remain unresolved.