Is preferential tariff application possible for goods totaling over 6,000 euros, simultaneously shipped from multiple points by an Italian non-certified exporter with B/Ls each under 6,000 euros, for the purpose of avoiding certification? Released

The issue of applying preferential tariffs related to non-certified exporters in Italy, which you inquired about, requires a deep understanding of the origin certification rules of the Korea-EU FTA, especially the 6,000 Euro limit for non-certified exporters and the definition of 'single consignment'. I will explain in detail, from the perspective of a customs broker, the possibility of applying preferential tariffs when an exporter simultaneously sends goods from multiple locations with B/Ls each under 6,000 Euros, with the total amount exceeding 6,000 Euros, for the purpose of avoiding certification.

1. Principles of Issuing Korea-EU FTA Origin Declarations and the Meaning of the 6,000 Euro Threshold

Under the Korea-EU FTA, the origin declaration is a key document proving the origin of exported goods. The requirements for drafting this origin declaration vary depending on whether the exporter is a 'certified exporter' and the value of the goods. The EU operates the Registered Exporter System (REX), and exporters within the EU must be registered in this REX system to be recognized as 'certified exporters'.

• For certified exporters (REX registered exporters): An origin declaration can be issued regardless of the value of the goods. This is because certified exporters are recognized as having sufficient capability for origin determination and managing related documents.
• For non-certified exporters: An origin declaration can only be issued if the total value of a single consignment does not exceed 6,000 Euros. For goods exceeding 6,000 Euros, only certified exporters can, in principle, issue an origin declaration. This 6,000 Euro threshold aims to reduce administrative burden for small transactions and apply stricter controls to high-value transactions.

2. Interpretation of 'Single Consignment' and Application to Simultaneously Dispatched Goods

The core of the question is "goods exceeding a total of 6,000 Euros simultaneously dispatched from multiple locations with B/Ls each under 6,000 Euros". The concept of 'single consignment' is treated as very important in the origin-related regulations of the Korea-EU FTA.

• In the case of goods 'simultaneously dispatched' by the same exporter to the same consignee: Even if divided into multiple commercial invoices or transport documents (B/L, AWB, etc.), if they are substantially 'simultaneously dispatched', they are considered a single consignment. That is, goods dispatched by the same exporter (even if sent from multiple locations, the legal entity may be the same) to the same importer at the same time will have their total value aggregated for the 6,000 Euro threshold. As in your case, if the amount per B/L does not exceed 6,000 Euros, but the total exceeds 6,000 Euros when simultaneously dispatched and aggregated, it is highly likely that the origin declaration issued by a non-certified exporter will be deemed invalid. This is the intent of the regulation to prevent fraudulent splitting to circumvent the 6,000 Euro threshold.
• Cases that may be recognized as a true 'split consignment': If the consignments split by each location were dispatched individually on different dates, via different means of transport, and each dispatch can be objectively proven as an independent commercial transaction, there may be room to consider each dispatch as an independent single consignment. In this case, if the amount per B/L does not exceed 6,000 Euros, preferential tariffs may be applicable with an origin declaration issued by a non-certified exporter. However, such a judgment is made very strictly based on the substance of the transaction and objective supporting documents.

3. Split Consignment for the Purpose of 'Avoiding Certification' and Its Impact

It is important that you specified "for the purpose of avoiding certification" in your question. Customs authorities closely examine the exporter's intent in such transactions. Origin certification rules exist to prevent the abuse of FTA benefits and maintain fair trade order.

• In case of split consignment by fraudulent means: If it is clearly confirmed that, despite being a single export/import contract or commercial transaction, the exporter intentionally split the goods into multiple B/Ls and simultaneously dispatched them to circumvent the 6,000 Euro threshold and avoid the obligation of REX exporter registration, the relevant origin declaration will be deemed invalid. In this case, the application of preferential tariffs is not possible, and the importer will be subject to the general applied tariff rate instead of the preferential tariff. Furthermore, such an act may be considered an attempt to receive undue customs benefits, leading to a violation of customs law, and disadvantages such as the imposition of additional taxes may occur if discovered later.
• Customs authorities' judgment criteria: Customs authorities comprehensively review all relevant documents, including export/import contracts, purchase orders (P/O), commercial invoices, transport documents (B/L, AWB, etc.), packing lists, and bank transfer details, to determine the substance of the transaction and the legitimacy of the split consignment. If goods ordered under the same contract, or dispatched from the same origin to the same importer at a similar time, are split into multiple transport documents, especially when combined with the circumstance that the exporter has not registered with REX, the purpose of avoiding certification can be strongly presumed.

4. Practical Measures for Importers to Take

To ensure stable application of preferential tariffs and prevent unpredictable disadvantages, importers are advised to consider the following:

• Prior consultation and education with the exporter: From the export contract stage, clearly explain to the Italian exporter the Korea-EU FTA origin certification requirements and the necessity of REX registration, and request that they complete REX registration to become a certified exporter if the total transaction amount exceeds 6,000 Euros.
• Encouraging REX registration: If you have an Italian exporter with whom you trade continuously, actively encouraging the exporter to obtain certified exporter status through REX registration from a long-term perspective is the most certain and safe method. This allows you to stably receive preferential tariff benefits without the 6,000 Euro value limit.
• Ensuring consistency and transparency of documents: All export/import related documents (contracts, P/O, invoices, B/L, etc.) must accurately reflect the substance of the transaction, and be carefully checked to ensure there are no unnecessary or intentional signs of splitting. If there are unavoidable commercial reasons for split consignment (e.g., production delays, lack of storage space, etc.), it is advisable to secure objective evidence for those reasons in advance.
• Consultation with a customs expert: If complex or difficult situations are anticipated, it is important to consult with a customs expert in advance to minimize legal risks and prepare the most appropriate response.

In conclusion, if an Italian non-certified exporter simultaneously dispatched goods exceeding 6,000 Euros from multiple locations with B/Ls each under 6,000 Euros for the purpose of avoiding certification, this is deemed an artificial splitting of a 'single consignment', and the application of preferential tariffs is considered impossible. Customs authorities strictly crack down on such attempts to circumvent regulations, so it is imperative to seek preferential tariff application by fulfilling legitimate procedures and requirements.