What is a REX License?
The REX system is a trade facilitation measure that simplifies the rules of origin certification for goods traded between countries that have signed a preferential trade agreement. It allows registered exporters to self-certify the origin of their goods, instead of having to go through a formal certification process with a government agency.
The REX program was developed by the European Union and is currently used by over 20 countries, including the EU member states, Switzerland, Norway, Turkey, and some countries in Africa, the Caribbean, and the Pacific.
To participate in the REX program, exporters must register with their national authorities and provide information about their business activities and the products they export. Once approved, they can use a REX number to self-certify the origin of their goods and benefit from preferential tariffs under the applicable trade agreement.
The REX system is designed to streamline the process of claiming preferential tariff treatment, reduce administrative burdens for exporters, and promote trade among participating countries.
Benefits of REX License
Simplifies the process of claiming preferential tariff treatment
The REX system allows registered exporters to self-certify the origin of their goods, which simplifies the process of claiming preferential tariff treatment under a trade agreement. This helps reduce administrative burdens for businesses and promotes trade between participating countries.
Streamlines the rules of origin certification process
Without the REX system, exporters would need to go through a formal certification process with a government agency or an authorized body for each shipment of goods they send. This process can be time-consuming and expensive. The REX system streamlines this process by allowing registered exporters to self-certify the origin of their goods for up to 12 months.
Helps ensure compliance with rules of origin requirements
The REX system helps ensure that exporters are following the rules of origin requirements set out in the relevant trade agreement. By requiring exporters to register with their national authorities and provide detailed information about their products and operations, the REX system helps prevent fraud and ensures that preferential tariff treatment is only granted to eligible products.
Enables businesses to take advantage of preferential tariff treatment
The REX system enables businesses to take advantage of preferential tariff treatment under the applicable trade agreement, which can make their products more competitive in the international marketplace. This can benefit both businesses and consumers by increasing access to a wider range of products at lower prices.
Promotes trade and economic growth
By making it easier for businesses to trade goods between countries that have signed preferential trade agreements, the REX system helps promote trade and economic growth. This can benefit businesses and consumers alike, by increasing access to a wider range of products at lower prices.
Who can get REX License?
Agriculture and Agribusiness
Automotive and transportation
Chemicals and plastics
Construction and building materials
Consumer goods and retail
Electronics and high-tech
Energy and Utilities
Healthcare and Pharmaceuticals
Industrial Manufacturing
Mining and Natural Resources
Textiles and Apparel
Tourism and Hospitality
Document Required for REX License
Click Here & Check Document Check ListRole of Shamkris and Process of REX License
Shamkris adopts a results-oriented approach to compliance with mandatory licence requirements in the organization. A simple and guidance methodology help organisation to achieve licence in a timely manner and cost-effective. Shamkris support 100% in advisory, Guidance, Compliance with respect to license requirements to obtain approval.
The License process described below:
- Advisory for the document required
- Preparation of documents as per application & list of documents.
- Application File
- Inspection by the department if required
- Liason department
- Yearly Compliance if Applicable
- Renewal when due
Who can issue REX License?
A REX license is not a physical license but rather a registration or number issued to exporters within the European Union (EU) to certify the origin of their goods for preferential trade treatment.
Exporters based in EU member states who wish to benefit from preferential trade agreements by proving the origin of their goods can apply for a REX number.
The process for obtaining a REX number typically involves contacting your local customs authorities within your EU member state. They will guide you through the registration process.
Generally, there is no direct cost for obtaining a REX number. However, there may be administrative fees or charges associated with the application process, which can vary by EU member state.
A REX number allows exporters to self-certify the origin of their goods, making it easier to access preferential tariff rates under various trade agreements between the EU and partner countries.