However, it was not until August 1 of the current year that the Agreement became operational, as provided in the second paragraph of Article 353 of the Association Agreement, and also mentioned by DGA´s TC 071/2013 of August 6, 2013. (www.dga.gob.ni)
About the Agreement is important to know the general provisions published in this circular:
- Rules of origin: All of theproducts originating in the EU are required for import to CA and vice versa, to benefit from the Agreement of Association upon presentation of: A goods movement certificate (downloadable from website DGA) and an invoice declaration by the exporter on an invoice or any other commerce document which describes the products concerned in sufficient detail to achieve identification.
- Application of the preferential tariff: The importer, through its legal representative shall select in the corresponding field for the declaration of goods under the permanent import regime preference, the tariff preference “EU-CA”.
- Transitional provisions: The provisions of the Association Agreement may be applied to products which comply with Annex II of the Agreement and that, on the date of entry into force, are in transit or in temporary storage in customs warehouses in the parties or in free zones, provided to submit to the Customs Authority, within 4 months from that date, a proof of origin issued retrospectively and documents showing that the goods have been transported directly in accordance with that Annex.
The competent authority in Nicaragua, for the issue of a movement certificate EUR.1, the verification of proofs of origin for exports and to grant the status of approved exporter is the Center for Export Procedures (CETREX) of the Ministry of Development, Industry and Trade (MIFIC), and for verifying proofs of origin for imports, or their successors, Customs Management (DGA).
The Technical Circular also annexed the transcription of Chapter 3 “Customs and Trade Facilitation” Title II “trade in goods”, as well as the articles contained in Annex II of the Association Agreement, entitled “ANNEX II CONCERNING THE DEFINITION OF “ORIGINATING PRODUCTS” AND METHODS OF ADMINISTRATIVE COOPERATION”. Also Appendix 5: Time period for filing a “billing statement” or refund of duty. Appendix 6: Amounts referred to in Article 19, paragraph 1, letter b) and Article 24, paragraph 3 of Annex II. The Association Agreement represents considerable advantages in terms of tariffs, removing barriers for trade, increased competition and transparency of subsidies and protection in intellectual property and geographical indications and covers key products, such as sugar, oil olive, apples, cherries, grapes, raisins, other tropical fruits, processed coffee, ornamental plants and flowers, rice, beef and bananas, which in practice usually are subject to entry requirements of rigorous compliance.