Selling or buying goods from the EU? Rules of origin explained.
From 1 January 2022, if you sell goods to the EU, or buy goods from theEU and bring them into the UK, you will need to be able to prove that they meet the rules of origin in order to use preferential tariffs.
Further information can be found here.
To claim preference (which means to trade with zero tariffs) in the TCA, products must meet their Product Specific Rule of Origin (PSR) outlined in the UK/EU Trade and Continuity agreement (pg.423). A PSR ensures that a product meet Rules of Origin requirements. This is achieved through one of the four most common rules under the agreement: Wholly Obtained, Change in Tariff Heading, Value Added, or Special Processing Rule.
You will need to provide evidence to support a claim for preference, using either a Statement on Origin or ‘Importer’s Knowledge’ that the product originates (which mean it meets its Rule of Origin). You may also need supplier declarations to support a claim for preferential (zero) tariffs on your goods.
Supplier declarations are used to provide evidence of the originating status of goods. They are made out by the business supplying goods or materials that will be incorporated into final goods, that are then exported, to evidence their originating status. In the event of verification by a customs authority, you may need to provide evidence from suppliers (via a supplier declaration) about the origin of your inputs.
Supplier declarations are required by an exporter when determining whether their goods qualify for preference so they can provide a Statement on Origin. Supplier declarations can also be used by an importer as part of the information required to use Importer’s Knowledge to claim preference. Supplier declarations can be verified by customs authorities as part of their checks to ensure goods met the Rules of Origin.
They can also be issued to accompany non-originating materials or goods exported from the UK to evidence any production that has taken place in the UK. Even though the goods are non-originating, the EU importer may count the UK production of these goods towards meeting the Rule of Origin for a final product. This is based on the TCA provisions allowing full bilateral cumulation. The same can be applied to materials or goods imported from the EU.
There are occasions where manufacturing on its own is not enough to meet the Product Specific Rule of Origin, and supplier declarations are needed.
There are certain circumstances where a supplier declaration will not be needed, for example when:
The exporter will source the supplier declaration from the business directly supplying them. However, that supplier may need to source information from further down the supply chain to prove the origin of their goods or inputs.
General Proof of Origin FAQ
If the importer makes a claim for preference using Importers Knowledge, the exporter does not need to provide a statement on origin, but they may need to provide supporting documents/evidence to the importer which demonstrate the originating status of the good. This would be supporting documents or records which should cover:
No. This is a permanent feature of the TCA and as such will continue to be a route to prove origin.
The statement on origin must be provided on an invoice, a delivery note or any other commercial document (excluding a bill of lading), describing the originating product in sufficient detail to enable its identification. The statement on origin must take the form of the text found in Annex ORIG-4 of the UK-EU TCA.
For supplier declarations, there is an option to complete a long-term supplier declaration (LTSD). This would be completed on the basis that you would receive the same consignment over a long period of time that would have the same originating status.
By Department for International Trade