EUR.1 vs Form A preferential origin for Georgia-exported corporate merch

Name: Merch.com.ge
Address: GE

When the EUR.1 movement certificate is the right document for a Georgia-EU shipment under DCFTA, and when Form A is the right document under GSP for shipments to the US, Japan, Canada and Switzerland.

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What the two documents actually do

An EUR.1 movement certificate is a customs document that proves the merchandise originates in Georgia and qualifies for preferential treatment under a free-trade agreement. The relevant FTA for Georgia-EU shipments is the DCFTA (Deep and Comprehensive Free Trade Area) that Georgia signed as part of the EU Association Agreement in 2014. Under the DCFTA, a Georgia-produced good entering the EU with an EUR.1 certificate pays zero import duty; the same good without the certificate pays the MFN (Most Favoured Nation) duty, which for corporate merch SKUs ranges from 3% to 12%.

A Form A certificate is a customs document that proves the merchandise originates in a developing country and qualifies for preferential treatment under the Generalized System of Preferences (GSP). Georgia is a GSP beneficiary for a long list of destination markets: the United States, Japan, Canada, Switzerland, Norway, Russia (suspended since 2014 but reinstated on a country-by-country basis for some goods), and a range of smaller markets. Under GSP, a Georgia-produced good entering the destination market with a Form A certificate pays zero or reduced import duty; the same good without the certificate pays the MFN duty.

The two documents are issued by different authorities. The EUR.1 is issued by the Georgian Revenue Service at the place of export; the Form A is issued by the Georgian Chamber of Commerce and Industry under the GSP scheme. The EUR.1 typically takes 1 to 3 working days to issue; the Form A typically takes 3 to 7 working days. Both are free of charge; both require the exporter to provide the commercial invoice, the packing list and the production-side documentation that proves the origin claim.

When EUR.1 is the right answer

EUR.1 is the right answer when the destination is the EU (or a DCFTA partner market — Ukraine, Moldova, and a few others) and the merchandise qualifies under the DCFTA rules of origin. The rules of origin are the test: the merchandise has to be either wholly obtained in Georgia (which for corporate merch is rarely the case — most fabrics come from outside Georgia) or sufficiently worked in Georgia that the origin shifts to Georgia. The "sufficient working" test for textiles is typically a tariff-shift test (the fabric enters Georgia under one HS code and exits under another, with the cutting-and-sewing happening in Georgia) or a value-added test (at least a specified percentage of the ex-works price is added in Georgia).

For a typical corporate merch polo programme (cotton fabric from Turkey, cut-and-sew in Tbilisi, silkscreen decoration in Tbilisi, packaging in Kutaisi) the EUR.1 is straightforward. The cotton fabric enters Georgia under HS code 5208 (woven cotton fabric), the cut-and-sew process converts it into a polo under HS code 6105 (knitted or crocheted polo), and the tariff shift is sufficient to satisfy the rules of origin. The EUR.1 is issued by the Georgian Revenue Service on production of our commercial invoice, the fabric mill's commercial invoice and the cut-and-sew partner's production declaration.

For a programme that uses fabric sourced from outside Georgia but with substantial Georgia-side value-add (cutting, sewing, decoration, finishing, packaging) the rules of origin are still satisfiable but the documentation is heavier. The exporter has to demonstrate the value-add percentage on the certificate application, and the Georgian Revenue Service has the right to audit the documentation. We typically reserve 5 to 10 working days for the EUR.1 process on a programme that is documentation-heavy.

When Form A is the right answer

Form A is the right answer when the destination is a GSP market (the US, Japan, Canada, Switzerland, Norway, the CIS countries that have a bilateral GSP with Georgia, and a long tail of smaller markets) and the merchandise qualifies under the GSP rules of origin. The rules of origin under GSP are similar in spirit to the DCFTA rules but technically distinct; the documentation requirements are heavier for some destinations (notably the US, which requires the Form A to be legalised by the Georgian Chamber of Commerce and Industry and then by the US Embassy).

For a US-bound programme the Form A process takes 7 to 14 working days end-to-end and the certificate has to be presented to US Customs and Border Protection at the port of entry. The duty saving under GSP for corporate merch is typically 5% to 10% of the merchandise value, which on a 500-unit programme is meaningful enough to justify the longer lead time. We always recommend Form A for US-bound programmes where the merchandise qualifies.

For a Japan-bound programme the Form A process is similar but the duty saving is smaller (typically 2% to 4% of the merchandise value) and the lead time is shorter. For Switzerland and Norway the Form A is automatic and the duty saving is zero (the bilateral FTAs between EFTA and Georgia cover most corporate merch SKUs at zero duty). For Canada the Form A is automatic for most SKUs and the duty saving is 3% to 8%.

The cost-benefit on a real programme

For a 500-unit polo programme shipped from Tbilisi to Munich with an ex-works value of EUR 12,000, the EUR.1 saves the buyer 8.4% import duty (EUR 1,008) at the German border. The certificate cost is GEL 0 (no charge from the Georgian Revenue Service) plus the buyer's broker time on the import declaration; we estimate the buyer's broker time at EUR 30 to 60. The net saving is EUR 950 to 980, which is material on a EUR 12,000 programme.

For a 1,000-unit bottle programme shipped from Tbilisi to New York with an ex-works value of USD 18,000, the Form A saves the buyer 6.5% import duty (USD 1,170) at the US port of entry. The certificate cost is GEL 120 (the Chamber of Commerce legalisation fee) plus the buyer-side customs broker time on the GSP declaration; we estimate the buyer-side broker time at USD 150 to 250. The net saving is USD 920 to 1,020 on a USD 18,000 programme.

For a 200-unit gift programme shipped from Tbilisi to London with an ex-works value of GBP 6,000, the EUR.1 is the right answer because the UK continues to recognise EUR.1 certificates for Georgia-origin goods under the UK-EU Trade and Cooperation Agreement (TCA) until 2027. The duty saving is 6.5% (GBP 390). The certificate cost is GEL 0 plus the buyer-side broker time at GBP 25 to 50. The net saving is GBP 340 to 365.

Frequently asked questions

How long does it take to issue an EUR.1 certificate from Tbilisi?

1 to 3 working days for a standard programme; 5 to 10 working days for a documentation-heavy programme that requires a value-add demonstration. The certificate is free of charge.

How long does it take to issue a Form A certificate for a US shipment?

7 to 14 working days end-to-end including the Chamber of Commerce legalisation and the US Embassy stamp. The certificate cost is GEL 120 plus the buyer-side broker time on the GSP declaration.

Is Corp-Merch a licensed customs broker or a chamber of commerce?

No. We are a licensed customs broker in Georgia for outbound shipments and we coordinate the certificate application on the buyer's behalf; the certificate itself is issued by the Georgian Revenue Service (EUR.1) or the Georgian Chamber of Commerce and Industry (Form A). We are not a partner or affiliate of either body.

Can the same shipment qualify for both EUR.1 and Form A?

No. A shipment takes either one certificate or the other, depending on the destination. For an EU shipment the EUR.1 is the right document; for a US shipment the Form A is the right document. A buyer who needs both (for example, a shipment that is transhipped through an EU port to a final US destination) needs the Form A because the US customs applies at the final destination.

Corp-Merch is an independent corporate merchandise producer in Georgia. We coordinate the EUR.1 and Form A certificate application on the buyer's behalf as part of our cross-border shipping service. The certificate itself is issued by the Georgian Revenue Service or the Georgian Chamber of Commerce and Industry; we are not a partner or affiliate of either body.

Ask for a customs plan

Send the destination country, the destination city, the volume and the SKU mix. We will reply within one working day with a customs-clearance plan, the certificate lead time and the expected duty saving.