According to the Overseas Association Decision and Council Decision context, the REX system is applicable in the Overseas Countries and Territories (OCTs). Note that the REX system applies to OCTs since 1 January 2020. Thus, tariff preferences will be given only to the registered exporters.
Stipulations for the Application of the REX System
For OCT to apply the REX system, it must satisfy two conditions:
- An undertaking to abide by the structure of the REX system.
- Submit the contact details of the competent authorities (deals with registered exporters) to the Commission.
- Norway, Switzerland, and Turkey’s GSP rules are similar to the GSP rules of the EU. Thus, the REX system applies to these countries as well.
REX System With Respect to GSP Scheme of the EU
The REX system replaces the certificate of origin Form A issuing system. Currently, the GSP benefiting countries use the new REX system from the EU. Also, they need not develop an IT system; instead, they can use the EU’s structure. Also, the regional cumulation applied by GSP beneficiaries countries declares a statement of origin through their registered exporters.
Initially, GSP beneficiaries countries could notify the EU until 30 June 2016 if they opt for the REX system. Further, the date was postponed to 1 January 2019. Approximately 40 countries, including India, agreed to be a part of the REX system by 1 January 2017. Following that, 17 countries came into the system by 2018 and 22 nations in 2019.
A country will have 12 months to transit from the former system to the current REX system. Concerning that, 30 June 2020 was the due date to the nations. However, due to the COVID-19 pandemic, several countries are asking for an extended period to make the shift.