The EUR1 is used to claim preferential (reduced or even zero) rates of duty in the country of importation. To qualify the goods must fully meet the rules of origin in the exporting country and be accompanied by a correctly completed and endorsed EUR1. The preference system only applies to countries where trade agreements exist with the EU, and benefit the buyer by making goods cheaper to import. The EUR1 form should be completed by the exporter.
There are often simplifications with the EUR1 system that you should check before using the document. Some countries have agreed that where a consignment is below a certain threshold value either a specific invoice declaration or, in some cases, an EUR2 can be used instead. Details on how the preferential trade agreements work, how to complete the EUR1 form and how to take advantage of the simplification measures are contained in three Public Notices Nos. 827 (a General Guide), 828 and 829 (information on the rules of origin and the export procedures for countries with preference trade agreements) and can be obtained from HM Revenue & Customs.
There have been isolated instances where some overseas Customs authorities have insisted on the production of a full EUR1 document despite specific agreement to accept the simplified procedures either an EUR2 or invoice declaration.