Procurement Glossary
EUR.1 Proof of preference: definition, application and significance in Procurement
November 19, 2025
The EUR.1 preference certificate is a key document in international trade that entitles companies to benefit from reduced customs duties. This preference certificate confirms the preferential origin of goods and enables considerable cost savings in cross-border transactions. Find out below what the EUR.1 preference certificate is, how it is used and what strategic importance it has for Procurement .
Key Facts
- Official preference certificate for the proof of preferential origin of goods
- Enables reduced or fully exempt customs duties in over 40 countries worldwide
- Issued by authorized customs authorities or authorized exporters
- Generally valid for 10 months from the date of issue
- Average savings of 3-15% of the value of goods possible through tariff preferences
Contents
Definition: EUR.1 Proof of preference
The EUR.1 preference certificate is a standardized certificate that documents the preferential origin of export goods and enables importers to benefit from reduced customs duties.
Basic properties and features
The EUR.1 certificate is a one-page form with unique numbering and security features. It contains detailed information on the exporter, importer, goods description and origin criteria. It is issued exclusively by authorized customs authorities or authorized exporters with the appropriate authorization.
EUR.1 vs. certificate of origin
While a certificate of origin merely confirms the origin, the EUR.1 preference certificate specifically entitles the holder to claim tariff preferences. The EUR.1 certificate is subject to stricter rules of origin and requires more detailed documentation of the value chain.
Importance in strategic Procurement
For purchasing organizations, the EUR.1 preference certificate is an important tool for cost optimization. By using it systematically, companies can significantly reduce their customs clearance costs and realize competitive advantages. Strategic supplier selection increasingly takes into account the availability of preferential proof of origin.
Methods and procedures
The successful use of EUR.1 preference certificates requires structured processes and clear responsibilities between Procurement, logistics and customs clearance.
Application and processing
The application for EUR.1 issuance is made to the exporter before or immediately after export. Complete trade documents, proof of calculation and, if applicable, supplier declarations are required. The processing time is usually 1-3 working days, but can take longer for complex origin calculations.
- Complete description of goods with customs tariff number
- Proof of origin through calculations
- Submission of relevant supplier declarations
Digital process optimization
Modern companies rely on digital workflows for EUR.1 management. Automated systems check origin criteria, generate applications and monitor validity periods. Integration into ERP systems enables seamless linking with order processes and customs clearance.
Quality assurance and compliance
Regular audits of origin calculations and documentation processes ensure legal certainty. Training courses for purchasing teams and suppliers ensure that everyone involved understands the current preference rules and applies them correctly.
Tacto Intelligence
Combines deep procurement knowledge with the most powerful AI agents for strong Procurement.
Important KPIs for the EUR.1 proof of preference
Systematic performance measurement enables the optimization of preference strategies and the quantification of added value for the company.
Cost savings and ROI
The preference saving as a percentage of the purchasing volume shows the effectiveness of preference utilization. Typical benchmarks are between 2-8% of the value of the goods concerned. The return on investment takes into account expenses for certification, documentation and personnel resources compared to the realized customs savings.
Degree of utilization and availability
The share of imports with EUR.1 use in the total import volume from countries entitled to preferential treatment measures the utilization of existing potential. Target values of over 80% are considered ambitious but achievable. The availability rate of EUR.1 certificates at suppliers shows the quality of supplier management.
- Preference usage rate by Categories
- Average processing time for EUR.1 applications
- Number of compliance violations per quarter
Process efficiency and quality
The average processing time of EUR.1 applications and the error rate for origin information measure the process quality. The degree of automation and digital consistency of the preference processes show the maturity of the organization. Regular staff training activities and certifications ensure sustainable success.
Risks, dependencies and countermeasures
The use of EUR.1 preference certificates entails various risks that can be minimized through systematic management.
Compliance risks and audits
Incorrect origin declarations can lead to additional customs duties, fines and a loss of confidence on the part of customs authorities. Customs authorities often carry out inspections years after import and can cause considerable costs. Companies should keep detailed documentation and carry out regular compliance audits.
Supplier dependencies
The availability of EUR.1 certificates depends on the willingness and competence of suppliers to cooperate. Changing suppliers can jeopardize preferential advantages if new partners do not have the corresponding authorizations. Diversified supplier portfolios and contractual agreements on the use of preferences reduce these dependencies.
- Contractual obligation to provide EUR.1
- Regular review of supplier approvals
- Identify alternative suppliers with preference authorization
Changes in trade agreements
Political developments and negotiations can affect or end existing preferential agreements. Brexit, trade wars and geopolitical tensions create uncertainty. Continuous monitoring of trade policy and flexible procurement strategies help to manage such risks.
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Practical example
A German automotive supplier purchases electronic components from Turkey with an annual value of 2 million euros. By consistently using EUR.1 preference certificates, the company reduces the customs burden from 4.5% to 0%. The annual savings amount to 90,000 euros with administrative costs of 8,000 euros for certification and documentation.
- Implementation of digital workflows for EUR.1 management
- Training suppliers on rules of origin and documentation requirements
- Quarterly review of preference usage and optimization potential
Trends & developments around the EUR.1 proof of preference
Digitalization and new trade agreements are shaping the development of preference certificates and creating both opportunities and challenges for purchasing organizations.
Digitalization and AI integration
Artificial intelligence is revolutionizing origin determination through automated analysis of supply chains and calculations. Machine learning algorithms identify optimization potential and suggest alternative procurement strategies. Blockchain technology enables seamless documentation of the value chain and increases the transparency of proof of origin.
New trade agreements and REX system
The REX system (Registered Exporter System) is gradually replacing traditional EUR.1 certificates with self-certification by registered exporters. New free trade agreements are expanding the network of preferential trade relations and creating additional savings potential. However, the complexity of different rules of origin requires specialized expertise.
Sustainability and ESG criteria
Preferential certificates are increasingly being linked to sustainability criteria. Environmental and social standards are included in the assessment of preferential origins. Purchasing organizations must reconcile ESG compliance and cost optimization through preferences.
Conclusion
The EUR.1 preference certificate is a powerful tool for optimizing costs in international Procurement . By using it systematically, companies can make considerable savings on customs duties and strengthen their competitiveness. Increasing digitalization and new trade agreements create additional opportunities, but also require continuous adaptation of processes and competencies.
FAQ
What is the difference between EUR.1 and EUR-MED?
EUR-MED is an extension of the EUR.1 system for the Mediterranean region and enables the cumulation of originating statuses between different Mediterranean countries. While EUR.1 documents bilateral preferences, EUR-MED allows more complex value chains across several countries.
How long is a EUR.1 preference certificate valid for?
The standard period of validity is 10 months from the date of issue. An extension can be applied for in special cases. It is important that the import takes place within the validity period, as subsequent preference applications are usually not possible.
What are the costs for the EUR.1 application?
Issuance by customs authorities is usually free of charge, but can incur processing fees of 10-50 euros. Authorized exporters do not pay any direct issuing fees, but must take into account approval costs and internal administrative expenses. The total costs are typically less than 1% of the value of the goods.
What happens if the EUR.1 information is incorrect?
Incorrect declarations of origin can lead to additional customs duties, interest and fines. Deliberate misrepresentation can result in criminal prosecution. Companies should therefore keep careful documentation and seek professional advice in the event of uncertainties.
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