Hopefully you will be able to make sense of this query. We sold some demo units to a sister company in the US back in 2005 & 2006. This company was then sold and we bought the units back from them which were then delivered to another company in the USA as our stock but for demonstration purposes. These units have now been sold to a company in Mexico and they are requesting that we supply them with a EUR-1 Preference Form so they can clear customs easier. The 5 pieces are still in the USA. Is this something we can do?

I’m afraid you can’t issue an EUR preference document unless the goods are physically in an EC member state. This is because of the “direct transport” rule. The EUR1 Form would, if you could issue it, allow the Mexican’s to import the goods at a lower customs duty rate. If they ask for a NAFTA (North America Free Trade Agreement) Certificate instead – you can’t do this either because the NAFTA rules says the goods must be manufactured in USA, Canada or Mexico. I’m afraid they are stuck with importing it as a standard supply and pay the customs duties and taxes. If this is a lot of money then you could consider shipping the units to the UK first and then sending them to Mexico.


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