Confirming Preferential Origin is a must for goods manufactured or dramatically changed within the United Kingdom (UK) and the European Union (EU) if traders want to reduce or zero custom duties applicable on importation into the UK or EU. This can involve a substantial amount of product origin data evidence, but will pay off in the long run.
The primitive when considering preferential origin to confirm a lower or zero duty rate on imports is to ensure that you understand the trade agreement and compliance requirements, to certify the requirements are being met.
The EU UK Trade Cooperation Agreement (TCA) is different from any other Free Trade Agreements the UK has with any other country. The TCA doesn’t replace the pre-EU Exit free movement of goods process, but instead offers movement within a strict protocol based on preferential origin.
As per HMRC and Irish Revenue, it is a legal requirement that UK exporters need to have evidence that their goods meet the Product Specific Rule within the TCA. This is done by obtaining supplier declarations from within the supply chain for the goods before the UK manufactured product is exported.
Without this evidence, then your business will not be compliant with the UK regulations and duty may be applicable on your import.
A supplier may be able to supply ‘supplier declarations’ to an exporter to help them establish whether the goods for export meet the Product Specific Rules of origin.
For example, with the scenario of a UK exporter wishes to confirm to an EU customer that the goods they have supplied are UK origin. Records would need to be in place to show evidence of how you concluded preferential origin before you make the exporters preferential statement – this is a legal requirement.
(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.
………………………………………………………… Place and date (4)
………………………………………………………… Name of the exporter
This must be completed and placed on all commercial invoices.
To find out more about preferential duty and the proof needed from HMRC and Irish Revenue, please follow the below links:
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