Understanding the REX Number: A Guide for UK Businesses

As a UK business engaged in trade with the European Union, it's essential to understand the Registered Exporter System (REX) and its implications for your EU partners. While UK businesses themselves do not require a REX number, their EU counterparts do, especially when dealing with preferential tariff treatments. This article provides an overview of the REX number, its benefits, and why it matters for your EU business partners.

What is a REX Number?

The Registered Exporter System (REX) is a certification system introduced by the European Union to simplify the export process. It allows exporters within the EU to self-certify the origin of their goods, providing a more efficient way to benefit from preferential tariff agreements the EU has with third countries. By registering in the REX system, EU exporters receive a unique REX number, granting them the status of an authorized exporter.

Benefits of the REX Number

Obtaining a REX number offers several advantages:

  1. Preferential Tariff Treatments: EU Exporters can benefit from reduced or zero tariffs under the EU's trade agreement with the United Kingdom.
  2. Deferred Customs and Tax Payments: Businesses can defer the payment of customs duties and taxes, improving cash flow.
  3. Streamlined Customs Procedures: The REX system reduces the need for physical inspection of goods and lowers the frequency of document checks.
  4. Faster Clearance: Transportation and goods are released more quickly through customs, reducing delays and associated costs.

The REX system has been operational within the EU's Generalised System of Preferences (GSP) since January 1, 2017.

The REX Number Registration Process

For EU businesses, obtaining a REX number involves the following steps:

  1. Application Submission: Submit an application to the relevant customs authority in the EU country.
  2. Documentation: Provide a list of goods eligible for preferential treatment.
  3. Online Registration: Applications can be submitted online through the designated business portal.
  4. Confirmation: Upon successful registration, the business receives a REX number, which is valid indefinitely unless revoked under specific circumstances (e.g., cessation of exports, false declarations).

Additionally, businesses must have an Economic Operators Registration and Identification (EORI) number for customs procedures.

When is the REX Number Required?

The REX number is crucial for documenting the origin of goods exported from the EU to benefit from bilateral accumulation under the GSP and to issue replacement statements of origin for goods re-exported within the EU customs territory or to specific countries like Norway, Switzerland, Turkey. It is also necessary for goods exported to countries with which the EU has preferential trade agreements.

 

For exports to the UK, EU exporters must be registered in the REX database to enjoy preferential tariffs. The REX number is mandatory for shipments exceeding €6,000. For shipments below this value, registration in the REX system is not required. Using the REX number confirms the preferential origin of goods, allowing importers to benefit from reduced or zero tariffs.

Implications for UK Businesses

While UK businesses themselves do not need a REX number, it is essential to ensure that their EU partners are registered in the REX system. This registration is vital for taking full advantage of preferential trade terms and ensuring smooth customs processes. UK businesses should verify that their EU partners' shipments include the REX number for any consignments exceeding €6,000 to benefit from preferential tariffs and streamlined customs procedures.

Understanding the REX system and its requirements ensures that UK businesses can effectively collaborate with their EU partners, optimizing their supply chains and reducing costs associated with tariffs and customs procedures.

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