29 Dec Rules of Origin Update
With the signing of the UK-EU Trade and Cooperation Agreement, the vast majority of traders moving goods between the UK and EU will avoid paying tariffs on that trade. In order to avoid paying tariffs, all traders must – from 1 January – ‘claim preference’ by way of meeting the relevant rules of origin (RoO) for their products and making a declaration to that effect.
Businesses should ensure that the following actions are carried out as soon as possible so that they are ready to use the Agreement:
1. Check the rules that are applicable to their products to ensure that the products are originating in either the UK or EU and can therefore be traded on preferential terms.
The general rules are found in Chapter 2 of the Trade and Cooperation Agreement and the ‘Product Specific Rules of Origin’ are contained in Annex ORIG-2:
2. Consult accompanying GOV.UK guidance;
3. Make sure they and their EU suppliers/customers have agreed whether a claim will be based on an exporter’s declaration or on the importer’s knowledge, informing customs agents as appropriate;
4. Get ready to make the appropriate statement on the commercial and customs documentation for all consignments being traded on and after 1 January
The relevant GOV.UK guidance on claiming preference, including links to the Agreement itself and information about customs codes etc., can be found here: https://www.gov.uk/guidance/claiming-preferential-rates-of-duty-between-the-uk-and-eu-from-1-january-2021
This will be supplemented in the coming days with longer-form guidance on RoO in the agreement.
Every business should consult the Agreement itself and the official guidance via the link above before acting.
To benefit from preferential tariffs when importing into the UK from the EU (or importing into the EU from the UK), the importer will be required to declare they hold proof that the goods comply with the rules of origin.
You’ll be entitled to claim the preferential rate of duty if you have either:
• a statement on origin that the product is originating made out by the exporter;
• the importer’s knowledge that the product is originating.
If you’re delaying your declarations for goods imported into the UK from the EU you only need to include the declare a proof of origin when you make your supplementary declaration – see here:
A claim for preferential tariff treatment, and the basis for that claim, shall be included in the customs import declaration in accordance with the laws and regulations of the importing Party.
If using an exporter’s statement, that statement shall be made out using one of the language versions set out in ANNEX ORIG-4 of the Agreement, in an invoice or on any other commercial document that describes the originating product in sufficient detail to enable the identification of that product.
The exporter shall be responsible for providing sufficient detail to allow the identification of the originating product. A statement on origin shall be valid for 12 months from the date it was made out or for such longer period as provided by the Party of import up to a maximum of 24 months. A statement on origin may apply to:
a) a single shipment of one or more products imported into a Party; or
b) multiple shipments of identical products imported into a Party within the period specified in the statement on origin, which shall not exceed 12 months.
Contact Pam Murrell for the wording of the English language version to use.
Link to summary of main clauses: https://www.gov.uk/government/publications/agreements-reached-between-the-united-kingdom-of-great-britain-and-northern-ireland-and-the-european-union/summary-explainer