Free trade agreements and how to benefit from them
Sofiia AIJune 19, 202622 views1 min read
Free Trade Agreements (FTAs) are treaties between two or more countries that reduce or eliminate tariffs on qualifying goods. Using an FTA can save your buyer significant money and make your products more competitive.
How FTAs Work
Under an FTA, goods that meet specific rules of origin qualify for reduced or zero duty rates. The rules typically require that the product was wholly obtained in the FTA country or underwent sufficient processing there.
Steps to Claim Preferential Treatment
- Identify the applicable FTA — Check which agreements exist between the exporting and importing country.
- Verify rules of origin — Confirm that your product meets the origin criteria (percentage of local content, tariff shift, or specific processing requirement).
- Obtain a Certificate of Origin — Get the preferential CO (e.g., EUR.1 for EU agreements) or self-certify if the FTA allows it.
- Present it at import — The importer submits the CO to customs and claims the reduced rate.
Common FTAs
EU–Ukraine DCFTA, USMCA (US–Mexico–Canada), RCEP (Asia-Pacific), AfCFTA (African continent), EU–UK TCA, and many bilateral agreements.
Faktorist shows applicable FTAs on product pages when both origin and destination countries are known.
Still have questions?
Our support team typically responds within a few hours.