Reducing import costs is a question faced by every company engaged in foreign trade. Most Ukrainian importers have traditionally focused on China: low production costs, wide product range, flexible manufacturing terms. Yet today, more and more companies and their counterparts are choosing to do business with Europe rather than China – and it’s not just about geopolitics.
The main argument is economic. The Association Agreement between Ukraine and the EU provides a system of trade preferences that allows companies to significantly optimise customs costs when importing from Europe to Ukraine. The key instrument of this system is the EUR.1 certificate – a document confirming the European origin of goods and granting access to preferential or zero customs duty rates.
How to obtain EUR.1, how to optimise customs costs, and why importing from Europe to Ukraine may be more advantageous than it seems – this article covers it all. Daleth Group, an international logistics operator with full customs brokerage support, helps navigate the process.
Why Businesses Choose European Imports Over China
What are the advantages of importing goods from Europe compared to China? Just a few years ago, this question seemed rhetorical. But the situation has changed. We see that Chinese agents, who were previously impossible to negotiate with, are now proactively reaching out and actively seeking clients worldwide. This is a signal: competition among Chinese suppliers is growing, but conditions for buyers are not improving.
Delivery times from China are increasing. Logistics are becoming more complex. Shipping costs sometimes exceed the cost of the goods themselves. Does it make sense to wait 2+ months or overpay for freight, when in Europe you can:
- purchase genuinely high-quality goods;
- receive them within 3–10 days;
- pay three times less for shipping than from China, and invest the difference in the product itself;
- communicate directly with the manufacturer, visit the production facility, test the product, and order a trial batch;
- receive ready-made CE certification without additional costs;
- build a business reputation: a verified manufacturer means you have an original product, not a counterfeit – and your goods sell faster and at a higher price.
Comparison: Importing from Europe vs. Importing from China
| Criterion | Import from Europe | Import from China |
| Delivery time | 3–10 days | 35–55+ days |
| Customs duty rate | 0–5% (with EUR.1) | 5–12% |
| Product quality | High, confirmed by EU standards | Variable |
| CE certification | Already in place | Requires separate arrangement |
| Logistics risks | Minimal | Higher (transit through multiple countries) |
| Minimum order quantity | Flexible, from small volumes | Often high MOQ |
| Business reputation | Increases ratings and client trust | Neutral or reduced |
| Total cost including duties and logistics | Competitive when using EUR.1 | Increases due to duties and long storage |
This does not mean China is losing relevance – for many product categories it remains an important source. Daleth Group arranges both shipments from China and imports from Europe, helping clients choose the optimal strategy based on the product and business objectives.
What Is the EUR.1 Certificate
What is the EUR.1 certificate and what is it for? EUR.1 is a certificate of origin that confirms goods were produced or sufficiently processed in an EU country or another country that has a free trade agreement with Ukraine.
This document serves as the basis for applying preferential (reduced or zero) tariff rates when clearing customs in Ukraine. Without EUR.1, customs applies the standard duty rate, even if the goods are actually of European origin. EUR.1 is issued by the customs authorities of the exporting country (Polish, German, French customs, etc.) based on documents confirming the origin, and accompanies the shipment during customs clearance.
“EUR.1 is one of the important tools for optimising customs costs, but it is part of an overall strategy rather than a universal solution. In practice, we frequently see clients either not using this certificate at all, or applying it incorrectly – wrong UKTZED code, late processing, discrepancies in documents. Sometimes a single consultation saves thousands of euros on a shipment,” – Daleth Group customs broker.
Benefits of Using EUR.1 When Importing
Can customs duties be completely avoided when importing from the EU? For many categories – yes. The Association Agreement between Ukraine and the EU provides for a gradual reduction of tariffs, and for a significant portion of product positions the rate has already reached zero.
Which goods qualify for preferential customs clearance from Europe? The list is broad: industrial goods, equipment and machinery, chemical products, textiles and clothing, construction materials, furniture, medical devices, food products (with some restrictions), and much more. The rate is determined by the UKTZED code and the terms of the agreement.
Practical benefits of EUR.1:
- Reduction or elimination of duties. The rate can drop from 5–12% to 0%. For regular shipments, this represents significant savings.
- VAT tax credit. EUR.1 combined with a correctly completed declaration allows the importer either not to pay VAT at customs, or to receive a tax credit and apply it against their own tax liabilities.
- Faster cash turnover. Fewer days in transit means lower storage costs and a faster return on investment.
- Competitive advantage. An importer using the preferential regime correctly has a lower cost of goods compared to competitors importing similar products without EUR.1.
The Process of Obtaining the EUR.1 Certificate
How to obtain the EUR.1 certificate for importing into Ukraine? The procedure consists of several steps.
- Confirming the origin of the goods. The supplier prepares documents: production records, material certificates, cost calculations in accordance with the rules of origin established by the agreement.
- Submitting an application to the customs authority of the exporting country. The supplier or their customs agent submits an application together with the invoice, packing list, and transport documents.
- Review and issuance of EUR.1. The customs authority reviews the documents and issues a certified certificate. The validity period is typically 10 months from the date of issue.
- Transfer of the certificate to the importer. EUR.1 is transferred together with the shipment or separately prior to customs clearance.
- Presentation at customs clearance in Ukraine. The customs broker includes EUR.1 in the document package when filing the declaration – customs applies the preferential rate.
Important note: if EUR.1 was not obtained before shipment, in some cases it is possible to issue a Statement on Origin – an alternative document for shipments up to 6,000 euros or from an approved REX exporter.
How to Reduce Customs Costs When Importing from the EU
How to optimise customs costs is a question every importer faces regardless of volume. Real optimisation is a combination of factors, not a single tool.
- Correct classification of goods by UKTZED code. The same product can be classified under different codes with different rates. Prior analysis is the first step towards legally reducing import costs.
- Using EUR.1 or a declaration of origin. If the goods meet the criteria for sufficient processing in the EU, the preferential regime provides direct savings on customs payments.
- Correct customs value. A properly prepared contract and invoice allow the importer to avoid unjustified overvaluation of the customs base by customs authorities.
- Choice of customs procedure. Depending on business objectives – import for free circulation, temporary admission, inward processing. Each option has its own conditions and advantages.
- Contract terms with the supplier. A well-drafted agreement is another point of cost reduction. If you need assistance finding reliable suppliers in Europe directly – Daleth Group specialists help with this too.
The Role of Daleth Group in the Import Process
Daleth Group is an international logistics operator with over 15 years of experience in transportation, customs clearance, and international trade. Own offices in the EU and Israel. The company arranges international delivery for Ukrainian importers from various directions – and handles practical customs clearance tasks on a daily basis.
“Most often, clients come to us after overpaying duties several times. We analyse their previous shipments and in most cases find opportunities for optimisation – through EUR.1, correct classification, or selecting the right customs procedure. A comprehensive approach allows us to reduce the real cost of imports by 8–15% with no grey schemes involved,” – Daleth Group logistics manager.
In the context of importing from Europe, Daleth Group provides full support: consultation on the preferential regime and UKTZED code, coordination of obtaining the EUR.1 certificate or declaration of origin, arrangement of transportation via the optimal route, full customs brokerage clearance in Ukraine, and digital cargo tracking online. Where needed – we help find suppliers in Europe directly.
Common Mistakes Made by Importers
- Ignoring EUR.1. Some importers, particularly those without significant foreign trade experience, do not request the certificate from their supplier – and overpay duties on every shipment.
- Late processing. EUR.1 must be obtained before shipment or at the same time. Retrospective processing is the exception, not the rule.
- Non-compliance with origin criteria. Goods manufactured in China and merely repacked in the EU are not considered goods of European origin – EUR.1 cannot be issued for them.
- Errors in documents. Discrepancies between the invoice, contract, and EUR.1 certificate lead to customs refusing to apply the preferential rate. Consistency across all documents is a mandatory requirement.
- Incorrect classification. Even with EUR.1 in hand, an incorrect UKTZED code may mean that no preferential rate is available for that product position.
Conclusion
Importing from Europe is not simply an alternative to China – it is a distinct strategy with real advantages: short delivery times, high quality and ready-made product certification, direct communication with the manufacturer, and the ability to reduce import costs through the EUR.1 certificate and the preferential regime under the Association Agreement with the EU.
Using EUR.1 correctly is not a complex scheme – it is a standard tool that works best in combination with proper classification, a well-drafted contract, and an experienced broker. The key is knowing how to use it.
Daleth Group is ready to manage the entire cycle: consultation on preferences, coordination of EUR.1 procurement, arrangement of international delivery, and full customs brokerage clearance. For those also working with Asian suppliers, the company arranges shipments from China as well – with the same level of service and control.
FAQ
Is EUR.1 required for every shipment?
Yes, EUR.1 is issued for each individual consignment. The certificate is not a standing document – it is issued for a specific batch of goods and is valid for 10 months from the date of issue. For complex, multi-component projects the process is somewhat more involved, but EUR.1 is still issued and preferences are granted when documents are correctly prepared.
What should I do if the supplier refuses to issue EUR.1?
This may indicate that the goods are not of European origin – for example, manufactured in China and merely repacked in the EU. In this case, EUR.1 cannot legally be obtained. The alternative is to verify the actual origin of the goods and consider other suppliers.
Can EUR.1 be obtained after the goods have already been shipped?
Yes, retrospective processing of EUR.1 is possible – if the certificate was not issued at the time of export due to errors or special circumstances, or if the issued certificate was not accepted for technical reasons by the customs authorities of the importing country. A retrospective EUR.1 can be issued within two years of the export date and must include the notation “ISSUED RETROSPECTIVELY” in box 7. However, obtaining the certificate does not automatically result in a refund of duties paid – the importer must then submit an application for review of the customs declaration to Ukrainian customs, and the entire verification and refund process takes approximately 4–6 months. This is why it is significantly simpler and faster to arrange EUR.1 before the goods are shipped.
Does EUR.1 apply to all goods without exception?
No. The list of goods is determined by the Association Agreement and depends on the UKTZED code. For some positions (certain types of agricultural products) quotas or restrictions apply. It is advisable to verify the conditions with a broker before planning a shipment.
Is there a difference between EUR.1 and a declaration of origin?
Yes. EUR.1 is an official certificate issued by a customs authority. A declaration of origin is a statement made by the exporter on an invoice or other document. Declarations may only be made by approved exporters (REX status) or for shipments valued at up to 6,000 euros.
How long does it take to process EUR.1?
Typically one working day, in rare cases longer – depending on the customs authority of the exporting country and the completeness of the documents. Daleth Group specialists coordinate this process with suppliers to ensure the certificate is ready by the time the shipment departs.