One of the many important reforms which EU has taken in its GSP rule of origin is the REXsystem or “Registered Exporter System”. In 2011, all the GSP beneficiary countries were asked to provide status of their readiness to implement this system from 1.1.2017 in their respective nations, by July 2015. India acted quickly and registered itself in the first list of beneficiary nations by agreeing to implement it from 1.1.2017. By doing so, India has reaffirmed its commitment of matching up with the world, as quickly as possible, in terms of Ease of Doing Business.

This new REX system, will replace the existing Certificate of Origin (Form A) issued by competent authorities with ‘Statements on Origin’ issued by the exporters themselves.

REX is an online electronic database system which will do two things mainly:

1. By registering in this system, exporters will get a unique identity number called, REXnumber. This REX number must be included in the Statements on Origin issued by exporters.
2. It will store all the necessary information related to the goods of Indian Origin being exported by Indian exporters under Generalized system of Preferences (GSP) to the EU countries, Norway, Switzerland and Turkey for auditing, monitoring and improvement purposes.

As per the Public Notice issued by DGFT on 30th December 2016, various Govt bodies, councils, trade boards, departments had been notified as competent authorities for registration and coordination purposes. To maintain clarity in hierarchy for exporters, three categories of agencies are notified. These are:

1. Agency for administrative cooperation: Interfaces with the EU and takes overall policy decision, Agency: Department of Commerce.
2. Local Administrator for Registration: Access EU system, nominate and create Local Users, verification, training and assistance. Agencies – a total of 16 agencies including, DGFT, SEZs, Silk Board, Spices Board, EIC etc.
3. Local Users: Receives applications from Exporters, Registers on REX, application scrutiny, verification, allotment of REX number, keeping record, recommend higher authority for revoking Exporter’s license in case of mala-fide application, charging fees, re-registration, monitoring, auditing and monthly reporting to higher authority, etc. Agencies – various regional offices of DGFT, EPCs, EIAs etc.

Exporter will need to approach Local Users with the complete application to get registered in the online system and get the REX number.

A few key points for Exporters:

• First one year (from 1.1.2017 to 31.12.2017) will be the transition period.
• There will be no fee or charges for registration.
• Mandatory for consignment value higher than € 6000. However, for consignment value less than € 6000, although it is not mandatory but proper commercial records of accounts of goods produced, inputs sourced in and final product exported under GSP should be preserved. Plus, all customs and other trade related documents/evidences must be preserved at least till five years from the date of ‘Statement of Origin’ made out.
• A periodic summary of ‘Statements on Origin’ made out should be provided by the Exporter to Local Users for Registration in the required format.
• Regional or inter-regional cumulation must be indicated in the Statement on Origin.
• A Statement on Origin must be made out on each consignment. In special cases it can cover multiple consignment and can even be made retrospectively. It is valid for 12 months from the date it is made out.