Preferential tariffs
Olivier THOUARD
Global Customs Leader at Ceva Logistics, Chair of TLF OVS Customs Committee, Vice-chair of CITI CLECAT
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.
Rules of origin
To claim preferential rates of duty, your product must originate in the EU or UK (as the exporting country) as set out in Chapter 2 of the Trade and Cooperation Agreement ‘rules of origin’ and the ‘Product Specific Rules of Origin’ contained in Annex ORIG-2.
The introductory notes to product specific rules of origin can be found in Annex ORIG-1.
You’ll need to know how to classify your goods when checking the product specific rules.
If your goods do not meet the rules of origin requirements (or if you cannot prove that the goods meet them) you’ll still need to pay Customs Duty. To find out the rate of duty, you’ll need to classify your goods correctly.
Proof of origin
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.
Statement on origin
The text for a statement on origin is in Annex ORIG-4 of the Trade and Cooperation Agreement.
When exporting from the EU to the UK a statement on origin can be made out by any exporter where the value of the consignment is 6,000 euros (currently ￡5,700) or less. Above this amount the EU exporter must have a Registered Exporter (REX) number and include it in the statement.
When exporting to the EU you must include your EORI number in any statement you issue to your EU customer, regardless of the value.
The statement on origin must be provided on an invoice, or any other commercial document (excluding a bill of lading), describing the originating product in sufficient detail to enable its identification.
It will be valid for 2 years from the date it was made out on imports into the UK and 12 months for imports into the EU.
-------------------------------------------------------------------------------------------------------
ANNEX ORIG-4: TEXT OF THE STATEMENT ON ORIGIN
The statement on origin referred to in Article ORIG.19 [Statement on origin] of this Agreement shall be made out using the text set out below in one of the 24 language versions and in accordance with the laws and regulations of the exporting Party. If the statement on origin is handwritten, it shall be written in ink in printed characters. The statement on origin shall be made out in accordance with the respective footnotes. The footnotes do not have to be reproduced.
(Period: from___________ to __________ (1))
The exporter of the products covered by this document (Exporter Reference No ... (2)) declares that, except where otherwise clearly indicated, these products are of ... (3) preferential origin.
…………………………………………………………….............................................(4)
(Place and date)
……………………………………………………………..........................................…
(Name of the exporter)
(1) If the statement on origin is completed for multiple shipments of identical originating products within the meaning of point (b) of Article ORIG.19(4) [Statement on Origin] of this Agreement, indicate the period for which the statement on origin is to apply. That period shall not exceed 12 months. All importations of the product must occur within the period indicated. If a period is not applicable, the field may be left blank.
(2) Indicate the reference number by which the exporter is identified. For the Union exporter, this will be the number assigned in accordance with the laws and regulations of the Union (REX number). For the United Kingdom exporter, this will be the number assigned in accordance with the laws and regulations applicable within the United Kingdom (GB EORI). Where the exporter has not been assigned a number, this field may be left blank.
To get a REX number, the exporter needs to apply for “Registered Exporter”
(3) Indicate the origin of the product: the United Kingdom or the Union.
(4) Place and date may be omitted if the information is contained on the document itself.
Importers knowledge
‘Importers knowledge’ allows the importer to claim preferential tariff treatment based on evidence they have obtained about the originating status of imported products. This evidence must be in the importer’s possession, be in form of supporting documents or records which may be provided by the exporter or producer and provide evidence that the product qualifies as originating.
As the importer is making a claim using their own knowledge, no statement on origin has to be provided by the exporter or producer.
Suppliers’ declarations
Until 31 December 2021, if you’re claiming preference on the basis of the importer’s knowledge or making out a statement on origin, you do not need to hold a supplier’s declaration at the time you’re claiming preference for goods imported from or to the EU.
But the importer must be confident that the goods meet the rules of origin. You must make every effort to obtain suppliers declarations retrospectively.
TRADE AND COOPERATION AGREEMENT: