Statement on Origin and the REX System in UK–EU Trade

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What a statement on origin is

A statement on origin is text added by the exporter directly to an invoice, shipping specification or other commercial document, in which the exporter confirms that the goods described meet the preferential rules of origin. In UK–EU relations the wording of the text is laid down by the Protocol on rules of origin of the Trade and Cooperation Agreement (TCA) and its annexes. The TCA does not provide for an EUR.1 movement certificate certified by a customs authority – the preference is applied on the basis of a statement on origin or the importer's knowledge (Article 54(2) TCA).

The REX system – who it applies to in UK–EU trade

The Registered Exporter System (REX) is an EU register thanks to which exporters certify the origin of goods themselves. In UK–EU trade the REX number applies only to EU exporters: an EU exporter must give its REX number in the statement where the value of the consignment exceeds EUR 6,000 (Article 68(4) of Implementing Regulation (EU) 2015/2447). Exporters from the United Kingdom do not register in REX – as their exporter reference number they give their EORI number beginning with "GB".

Consignments up to EUR 6,000

For consignments with a value not exceeding EUR 6,000, an EU exporter may make out a statement on origin without a REX number. The statement must still contain the declaration text provided for in the TCA, and the goods must actually meet the rules of origin – the threshold applies only to the obligation to give a REX number, not to the rules of origin themselves.

What a statement on origin must contain

The statement should contain: the declaration text provided for in the TCA, the exporter's reference number (in the EU the REX number – if required; in the UK an EORI number beginning with "GB") and the place and date of making out. The statement requires no signature or stamp. It is placed on a commercial invoice or another document that allows the goods to be identified. A statement may also cover multiple consignments over a period of up to 12 months.

Validity of the statement

A statement on origin is valid for 12 months from the date it is made out. The importing side may extend this period to a maximum of 24 months: the United Kingdom accepts 24 months for statements made out by EU exporters, while the EU applies 12 months to statements by UK exporters. The claim for preference must be made within the validity period of the statement.

Its role in UK–EU trade

The Trade and Cooperation Agreement between the EU and the United Kingdom provides for zero duties on originating goods, provided the rules of origin are met. An importer may claim the preference on the basis of a statement on origin made out by the exporter or on the basis of its own knowledge of the origin of the goods (Article 54(2) TCA). In practice the statement on origin is the most commonly used – both by EU exporters shipping to the UK and by UK exporters shipping to the EU. If an exporter bases the origin of a product on components bought from other suppliers, it should first collect the appropriate supplier's declarations confirming the origin status of those components.

Verification by customs authorities

Verification takes place in two stages. The customs authority of the importing country may first put questions to the importer (Article 61 TCA). It may then ask the customs authority of the exporting country to verify origin (Article 62 TCA) – within 2 years of the import of the goods. While verification is under way, the authority of the importing country may suspend the application of the preference, with the possibility of releasing the goods on provision of a guarantee.

How to register in the REX system (EU exporters)

Registration is made by submitting an application to the competent customs authority of the Member State in which the exporter is established – in Poland, the National Revenue Administration (KAS). The application requires, among other things, the company's identification details and EORI number. After registration the exporter receives a REX number, which it gives in statements on origin for consignments above EUR 6,000. Exporters from the United Kingdom do not submit such an application – they use an EORI number beginning with "GB".

REX and the UK exporter's EORI number

In UK–EU trade both sides rely on a model of self-certification by the exporter, but with a different reference number on each side: an EU exporter gives a REX number (where the consignment exceeds EUR 6,000), and a British exporter gives an EORI number beginning with "GB". A British consignee should therefore not expect a REX number from a UK supplier, nor should an EU importer expect one from a counterparty in the United Kingdom.

Common mistakes when making out statements

The most frequent problems are: using the wrong wording of the declaration text, omitting the REX number for an EU consignment above the EUR 6,000 threshold, relying on a statement after its validity has expired, making out a statement for goods that have not undergone sufficient working or processing within the meaning of the rules of origin, and inconsistency between the description of the goods on the invoice and the description in the documents confirming origin. Any of these mistakes may result in the preference being challenged during a post-clearance check.

Splitting consignments and the EUR 6,000 threshold

The EUR 6,000 threshold refers to the value of the consignment, not to the sum of all deliveries in a given period. Artificially splitting one delivery into several smaller consignments solely to avoid giving a REX number may be challenged by the customs authority, especially if the consignments are sent at short intervals to the same consignee and relate to the same order.

Keeping records

The TCA lays down minimum record-keeping periods: the importer – at least 3 years from the date of import, the exporter – at least 4 years from the making out of the statement on origin. For an importer in the United Kingdom, a statement received from an EU supplier is the basis for applying the preferential rate in a declaration in the CDS system; the importer should be prepared to produce it at HMRC's request, even if it did not itself take part in determining the origin of the goods.

Importer's knowledge

The TCA also allows an alternative route – the importer's knowledge (Article 54(2) TCA) – under which it is the importer, not the exporter, that holds documentation showing that the goods meet the rules of origin, without needing to obtain a statement from the supplier. In practice this route is used less often, because it requires the importer to have access to the supplier's detailed production data, which in many trading relationships is confidential information.

Practical checklist before making out a statement

Before adding a statement on origin to an invoice, it is worth checking in turn: whether the goods actually meet the rule of origin applicable to their code in the TCA Protocol on rules of origin, whether the supplier's declarations held cover all the components used, whether the correct exporter reference number has been given (REX for EU consignments above EUR 6,000, "GB" EORI for a UK exporter), whether the statement will be valid at the time the preference is claimed and whether the correct wording of the declaration text has been used. Omitting any of these steps is a common reason for the preference being refused during checks on the importer's side.

See also related guides

• Supplier's declaration of origin of goods
• UK–EU rules of origin: when they let you avoid duty
• How to apply the rules of origin to your product

If you need help with REX registration or with making out a statement on origin, contact us.

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