Other origin certificate instead of EUR.1 under PEM: technical defect or fatal flaw?

Even when a certificate definitively states the product’s origin, it may not secure preferential treatment if it was not issued in the required form. Importers can then face a substantial retrospective customs debt, even after the goods have been released and sold. This occurred in the context of preferential trade between Israel and Ukraine. Still, the lesson applies to any jurisdiction and any free trade agreement, particularly those concluded between parties to the PEM Convention. This article looks at whether customs should verify origin with the authorities of the exporting country before rejecting a certificate they consider invalid, and whether a defective or missing document can justify recovery of duty.