Supplier's Declaration Explained Simply

What is a Supplier Declaration?

Supplier declarations (SD) are generally used for movements of goods within the EU (i.e., from suppliers based in the EU to recipients based in the EU). They serve essentially as a simplified proof of origin (=information about the preferential origin property of delivered goods). 

A supplier declaration is a document created by manufacturers or intermediaries in the EU to specify the origin of their products. This is important, for example, when preferences are to be used. The supplier is solely responsible for issuing the declaration, with the customs authorities not being involved. Before a supplier declaration is issued, extensive checks and documentation must be carried out to ensure that all conditions are met. The customs authorities can request the supplier to present the documentation of the supplier declaration. 

Single Supplier Declarations (SD) and Long-term Supplier Declarations (LSD)

1. Single Supplier Declarations - a supplier declaration can refer to a single delivery and is then called a single declaration. This always makes sense when the recipient is not regularly supplied with the goods or when the goods are manufactured specifically for a single order. Regular supply is unlikely or impossible.

2. Long-term Supplier Declarations are declarations that are given once and remain valid for deliveries over a longer period (maximum 24 months), as long as the delivered goods are expected to have the same origin.
   
   

A LSD must include the following information:

• the date of issuance of the declaration (issuance date)

• the date from which the LSD is valid (start date)

• the date until which the LSD is valid (expiry date)

The start date must not be more than 12 months before or 6 months after the issuance date, but it can be freely chosen within this time window. For deliveries that are more than 12 months ago, only a single supplier declaration is applicable.

Within the maximum validity period, the specific validity period of a LSD can be specified under "This declaration applies to all shipments of these goods during the period from … to …".

Supplier Declaration with Preferential Origin

Supplier declarations for goods with origin property can only be issued by suppliers within the EU. Exceptions are certain cases in trade with Turkey (shipments between the EU and Turkey are accompanied by the transit document A.TR. If it is necessary to prove the preferred origin of goods, for example to deliver Turkish goods duty-free to other states or to issue a supplier declaration in accordance with the UCC for deliveries within the EU, it is necessary for the supplier to fill out a specific supplier declaration.). 

These declarations certify that a product meets the requirements of a specific EU preferential agreement. The recipient needs this declaration to create further evidence if they want to resell the acquired product unchanged or use it as a precursor for the manufacture of a subsequent product. Supplier declarations issued by suppliers outside the EU are not recognized in the EU.

A supplier declaration for goods with preferential origin property must specify which preferential country of origin the product has. Commonly the indication "European Union" is used, rarely a single member state like "Germany". This can additionally be specified. Furthermore, the declaration must specify for which possible preferential agreements (= possible future destination countries) the origin rules are met. 

Supplier Declaration without Preferential Origin

If goods do not have preferential origin properties, the supplier may issue a declaration regarding the processing operations carried out in the EU, which are not sufficient to confer origin properties. However, such supplier declarations are issued only in certain cases. In a supplier declaration for goods without preferential origin property, it must be specified for which possible preferential agreements - i.e., possible future destination countries - the origin rules are met.

Form Requirements (Wording of Supplier Declarations)

The wording of supplier declarations is bindingly set but does not require the specification of specific legal bases.

A supplier declaration can be made on a form (available for example at the chambers of commerce and industry) or on the invoice, a corresponding delivery note, or another trade document. The goods must be described with such precision that the relation to the goods is clearly recognizable (so-called identity).

Supplier declarations must be signed in the original as a rule. This is only not necessary if both the declaration and the invoice are created electronically. 

Here you can find an overview with wordings of supplier declarations (DE, EN, FR versions).

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