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January 31, 2025

EU-Chile Trade Agreement: Key Changes from February 2025

The EU-Chile Transitional Trade Agreement takes effect Feb 1, 2025, simplifying rules on preferential origin, documentation, and exporter status.

Summary

On February 1, 2025, the Transitional Trade Agreement (ITA) between the European Union and the Republic of Chile will come into force, replacing the existing Association Agreement. This new agreement introduces more liberal rules on the preferential origin of goods, significantly impacting documentation requirements for trade between the EU and Chile.


1. Introduction to the ITA

The Transitional Trade Agreement (ITA) was announced in the official website of the EU commission, and will take effect on February 1, 2025. This agreement aims to simplify and modernize trade rules, benefiting importers and exporters operating between the EU and Chile.

Key business advantages include:

  • Simplified procedures for proving the origin of goods
  • More flexible trade regulations, aligning with other modern FTAs
  • Digital-friendly processes, reducing paperwork

2. New Rules on Preferential Origin of Goods

The ITA introduces updated origin rules outlined in Chapter 3 of the Agreement. These align with recent FTAs such as those with the UK, Japan, and New Zealand. The preferential origin of goods will now follow simplified criteria, benefiting companies involved in EU-Chile trade.

3. Changes in Documentation Requirements

One of the most significant changes in the ITA is the shift in documentation requirements for proving the preferential origin of products. The current EUR.1 certificates and invoice declarations will no longer be valid. Instead, businesses must use:

  • Origin Statements: Replacing EUR.1 certificates and invoice declarations
  • Importerโ€™s Knowledge: Allowing businesses to self-declare origin
  • Registered Exporter (REX) System: Required for shipments over โ‚ฌ6,000

The origin statement template texts will be available in multiple languages. However, it is recommended to use the English version.

4. Key Changes Effective February 1, 2025

  • EUR.1 certificates and invoice declarations will no longer be accepted.
  • Applications for preferential treatment for goods in transit must use new origin statements
  • Authorized Exporter status will be replaced by Registered Exporter (REX) status.
  • REX numbers will be mandatory for shipments over โ‚ฌ6,000.
  • Transition period? The old documentation system will not be accepted after February 1, 2025.

5. New Document Codes for Proof of Origin

In connection with the ITAโ€™s entry into force, three new document codes will be introduced on February 1, 2025:

  • U123 โ€“ Origin Statement
  • U124 โ€“ Origin Statement for multiple shipments of identical products
  • U125 โ€“ Importerโ€™s Knowledge

These new codes will be used for customs clearance and trade declarations under the ITA framework.

6. Legal Basis & Next Steps for Businesses

The changes introduced by the ITA are legally based on:

  • Transitional Trade Agreement between the EU and Chile
  • Official Notification on the ITAโ€™s Entry into Force
  • Review internal trade processes and update documentation procedures
  • Register for REX status if exporting goods over โ‚ฌ6,000
  • Train compliance teams on the new origin statement rules
  • Ensure customs declarations reflect the new document codes

We understand that adapting to these new trade regulations may present challenges, and we are committed to helping you navigate the transition smoothly. Our team is actively working on strategies to ensure compliance with the new ITA requirements, so your import and export operations remain uninterrupted.

If you have any questions regarding New origin documentation (U123, U124, U125), The transition from EUR.1 certificates to Origin Statements, Registering for REX status and Customs procedures under the new agreement, our expert customs consultants are here to support you! We are dedicated to making this transition as seamless as possible for your business.

Get in touch with us todayโ€”our team is always available to assist you!

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This article was written by:

Daniel Mahnken

Corporate Communication

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