The two types of supplier declaration
Commission Implementing Regulation (EU) 2015/2447 defines two distinct supplier declaration forms, each serving a different purpose in the origin chain.
The first type, set out in Annex 22-15 (single) and Annex 22-16 (long-term), is made for goods that have EU preferential origin status. The supplier declares that the goods described have originating status under the relevant preferential arrangement and, if applicable, that no drawback of or exemption from customs duty has been applied. This declaration is used when the supplier's goods are fully originating, having been wholly obtained in the EU or having undergone sufficient processing to qualify under the applicable PSR.
The second type, set out in Annex 22-17 (single) and Annex 22-18 (long-term), is for goods that have undergone processing in the EU without having acquired preferential origin. This applies when a supplier has incorporated non-originating materials that have been processed in the EU but have not yet crossed the transformation threshold to become EU-originating on their own. The declaration quantifies the degree of processing performed in the EU, which allows the recipient to determine whether, combined with further processing they perform, the finished product will meet the applicable PSR.
Required content of a supplier declaration
A supplier declaration must contain certain mandatory elements to be legally valid. The declaration text itself is prescribed in the Annexes, and the structure must follow that text. The key information required is:
- the name and address of the supplier
- a description of the goods covered, sufficient to identify them
- whether the declaration covers a single shipment or a defined period (long-term)
- a clear statement of originating status or, for Annex 22-17 declarations (goods not having preferential origin), a description of the processing performed in the EU and confirmation of which materials do not have EU origin
- date and signature of the supplier
The declaration can be made on the invoice, delivery note, or any other commercial document relating to the goods. It does not require a separate customs form, but it must follow the prescribed wording in the Annex and contain all mandatory elements. A declaration that is missing the required statement text or that is attached to a document that does not clearly link it to specific goods is not valid.
Long-term supplier declarations
A long-term supplier declaration (LTSD) can be issued for supplies of the same goods delivered during a defined period of up to two years. The declaration states a validity start date and end date. All deliveries of the described goods during that period are covered by a single declaration, rather than requiring a separate declaration for each invoice.
LTSDs significantly reduce the administrative burden for regular supply relationships. Once issued, the buyer can use the LTSD to substantiate any shipment of the covered goods within the validity period without requesting a new document each time.
The validity period starts from the date specified on the declaration and can start up to one year before the date the declaration was issued, to cover past deliveries retroactively. However, the retroactive period is limited: the declaration cannot cover deliveries made more than one year before it was signed.
When sourcing from EU suppliers that provide LTSDs, build a tracking system that monitors expiry dates. An LTSD that expired six months ago but is still being used in origin documentation is a compliance gap that will be visible to Dutch Customs during a post-clearance audit. Refresh LTSDs before they expire, not after.
Supplier liability for incorrect declarations
The supplier is legally responsible for the accuracy of the declaration. If a supplier issues a declaration stating that goods have EU preferential origin when they do not, or incorrectly describes the processing performed, the supplier can be held liable by customs authorities for any duty loss resulting from a downstream preference claim based on that declaration.
In practice, the customs authority in the recipient's member state that discovers an invalid preference claim will transmit a verification request to the customs authority of the supplier's member state. That authority contacts the supplier and requests documentary proof of the origin claim. If the supplier cannot substantiate the declaration, both the preference claim and the supplier declaration are invalidated.
The buyer whose preference claim is invalidated has a civil claim against the supplier, but Dutch Customs' back-duty assessment is against the buyer as the importer of record. Contractual indemnification clauses in supply agreements can mitigate the financial exposure, but they do not prevent Dutch Customs from issuing the assessment in the first place.
Verification by Dutch Customs
Dutch Customs can request verification of a supplier declaration as part of a post-clearance audit or during verification of an export preference claim. The verification is conducted through administrative cooperation between EU customs authorities under the mechanism set out in the UCC and the Implementing Regulation.
If Dutch Customs requests verification of a supplier declaration and the supplier's customs authority responds that the declaration is incorrect or cannot be substantiated, Dutch Customs will invalidate any preference claims that relied on that declaration. A post-clearance assessment for the unpaid duty difference will follow. The assessment covers all shipments during the period that the invalid declaration was used, which can mean multiple years of back-duty exposure.
For a broader view of the consequences of preference claims that cannot be substantiated, see the article on what happens when you claim preference incorrectly.