EU-Central America Association Agreement

The trade pillar of the EU-Central America Association Agreement has been provisionally applied since 1 August 2013 with Honduras, Nicaragua and Panama, since 1 October 2013 with Costa Rica and El Salvador, and since 1 December 2013 with Guatemala. It reduces tariffs and increases the efficiency of customs procedures.

The agreement at a glance

The six Central American countries that are Parties to this agreement are

What are the benefits for your business?

The EU-Central America Association Agreement

Trade relations between the EU and Central America

The EU and Central America have maintained close and comprehensive relations for a long time. As an EU exporter or importer, you can take advantage of the relationship between the two regions to benefit your business.

The most significant imports from Central America are foodstuffs such as fruit (e.g. bananas, pineapples), sugar, animal or vegetable fats and oils (mainly palm oil), coffee beverages, and medical instruments.

In terms of EU exports to Central America, significant product groups include pharmaceutical products, machinery and appliances, as well as transport equipment.

Tariffs

Industrial goods and fisheries

Did you know that the Association Agreement largely eliminates almost all tariffs on manufactured products and fisheries?

Agricultural goods

The EU-Central America FTA eliminated most of the tariffs on agricultural products, leaving only those on 'sensitive areas'. Therefore

Before you export

Rules of origin

In order to qualify for preferential treatment, your product will need to satisfy the rules of origin under the agreement. Please check the interactive “Rules of Origin Self Assessment tool (ROSA)” in My Trade Assistant to assess whether your product fulfils the rules of origin and find out how to prepare the correct documents.

General information about the rules of origin and the origin procedures can be found in this section.

Origin is the 'economic nationality' of traded goods. If you are new to the topic, find an introduction to the main concepts in the goods section.

Where can I find the rules of origin?

Concerning definition of the concept of ‘originating products’ and methods of administrative cooperation of the EU-Central America Association Agreement, the rules of origin are set out in Appendix 2 (page 2319) and Appendix 2 A (Page 2416). Consult the consolidated version of the agreement text

Is my product “originating” according to the EU-Central America Association Agreement?

For your product to qualify for the lower or zero preferential tariff under the EU-Central America Association Agreement, it must originate in the EU or Central America.

A product originates in the EU or Central America if it is

Examples of the main types of product-specific rules in EU trade agreements

Tips and tricks to comply with the product-specific rules

The agreement provides additional flexibility to help you comply with the product-specific rules, such as tolerance or cumulation.

Tolerance

Cumulation

The EU-Central America Association Agreement also allows for

Other requirements

The product also needs to fulfil all other applicable requirements specified in the Protocol, such as insufficient working or processing, or the direct transport rule.

Direct transport rule

Originating products must be transported from the EU to a signatory Central American country (and vice-versa) without being further processed in a third country.

Trans-shipment or temporary warehousing in a third country is allowed if the products remain under the surveillance of the customs authorities and do not undergo operations other than

You will have to provide evidence of the direct transport to the customs authorities of the importing country.

Duty drawback

Under the EU-Central America Association Agreement, it is possible to get a refund on duties previously paid on non-originating materials used to manufacture a good that is exported under a preferential tariff.

Origin procedures

If you want to claim a preferential tariff you will have to follow the origin procedures and have your claim verified by the customs authorities of the country into which you are importing your goods. The procedures are set out in Title IV on Proof of origin and Title V on Arrangements for administrative cooperation.

How to claim a preferential tariff?

To benefit from a preferential tariff, importers must provide proof of origin.

The proof of origin can be either

No proof of origin is required when the total value of the products does not exceed

The proof of origin is valid for a period of twelve months from the date of issue.

Movement certificate EUR.1

Origin declaration

Exporters can self-declare that their product originates in the EU or one of the Central American countries by providing an origin declaration. The origin declaration can be made out by:

Approved exporters
How to make an origin declaration?