Rules of Origin in UK–EU Trade: How to Get 0% Duty

Rules of origin are the criteria used to determine a product's country of origin. In trade between the United Kingdom and the European Union they decide whether goods can benefit from a preferential (zero) duty rate under the Trade and Cooperation Agreement (TCA) or whether full duty is payable. The criteria depend on the tariff heading: a product may be wholly obtained in the country, a change of tariff classification of the materials may be enough, or what counts may be the share of non-originating materials by value or weight, or a specific production process.

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How to obtain the preferential duty rate

Under Article 54 of the TCA, a claim for preferential tariff treatment is based on one of two things: a statement on origin made out by the exporter, or the importer's knowledge that the product is originating. The importer is responsible for the correctness of the claim. The claim is attached to the import declaration; if it was not made, preference can be obtained retrospectively — the claim must be made no later than three years after the date of importation (Article 55).

An EUR.1 certificate is not proof of origin in EU–UK trade. For an EU exporter, a statement on origin requires a REX number for consignments above EUR 6,000 — see the statement on origin and the REX system.

The statement on origin — what it must meet

• the exporter makes it out on the basis of information showing the product is originating and is responsible for its correctness (Article 56(1)),
• it is placed on an invoice or another document describing the product in enough detail to identify it (Article 56(2)),
• it is valid for 12 months from the date it was made out, or longer if the importing Party so decides — at most 24 months (Article 56(3)),
• it can cover a single shipment or multiple shipments of identical products within a period of no more than 12 months (Article 56(4)).

Minor errors in the statement cannot be a ground for rejecting the claim (Article 57). Where the importer cannot obtain the origin information because the exporter regards it as confidential, the exporter can provide a statement on origin (Article 58).

Record-keeping and verification

The importer keeps the statement on origin — or, where the claim rests on the importer's knowledge, all the documents showing the product meets the origin requirements — for at least three years after the date of importation. The exporter keeps a copy of the statement and the supporting documents for at least four years (Article 59). The customs authority may verify origin, including after release of the goods, and ask the importer for the statement and for information on meeting the origin criteria, for example a list of non-originating materials (Article 61).

The most common mistake

Origin does not follow from where goods were bought or shipped: goods bought in the UK are not automatically of UK origin, and 0% duty is not granted "automatically". How to determine origin step by step is explained in how to apply rules of origin to your product, when rules of origin avoid duty and the supplier's declaration of origin. If you are not sure about your product, get in touch with us.

Sources

• EU–UK Trade and Cooperation Agreement (TCA), Articles 54–61
• GOV.UK: Get proof of origin for your goods

Frequently asked questions