GlossaryEN1 min readUpdated: Jun 12, 2026
Application of a Free Trade Agreement
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.
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Source: https://ec.europa.eu/trade/policy/countries-and-regions/free-trade-agreements/
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Logistics Concept
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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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