Application of a Free Trade Agreement

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Last updated: 12 June 2026Published: 27 January 2026

Source: https://ec.europa.eu/trade/policy/countries-and-regions/free-trade-agreements/

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Definition & Explanation

Application of a free trade agreement means, in practice, that a company actively uses the tariff preferences and rules of origin of that agreement for cross-border shipments. This involves meeting origin requirements (local value-added, documentation of source), correctly declaring goods under preferential codes, submitting required certificates, and managing procedures with customs authorities. Freight forwarders and shippers must continuously monitor these processes to benefit from reduced tariffs and expedited clearance while minimizing compliance risks.

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Related Terms

EFTA Free Trade Agreement

North American Free Trade Agreement (NAFTA)

NAFTA - North American Free Trade Agreement

Free Trade Agreement with Switzerland

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CAFTA‑DR

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