GlossaryEN1 min readUpdated: Jun 22, 2026
Free trade agreement
When declaring goods between partner countries, freight forwarders and customs brokers draw on Free Trade Agreements (FTAs) to claim preferential duty rates on behalf of their clients.
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Source: https://ec.europa.eu/trade/policy/glossary/free-trade-agreement/
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Definition & Explanation
When declaring goods between partner countries, freight forwarders and customs brokers draw on Free Trade Agreements (FTAs) to claim preferential duty rates on behalf of their clients. An FTA is a binding international treaty that eliminates or substantially reduces customs duties, import quotas, and non-tariff barriers between signatory states. Accessing preferential rates depends on rules of origin: goods must satisfy defined origin criteria and be supported by documents such as an EUR.1 movement certificate or an origin declaration on the invoice. FTAs negotiated by the EU, EFTA, or individual countries vary considerably in scope and product coverage, making pre-clearance eligibility checks essential. Incorrect origin declarations can trigger post-clearance audits and retroactive duty assessments.
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