Rules of origin
To claim preferential rates of duty, your product must originate in the EU or UK (as the exporting country). You are allowed to include goods originating from the Rest of the World (ROW) however there are strict guidelines per commodity as to what percentage of ROW goods can be used in the manufacturing process for the goods to still qualify for preference.
Goods of different origins in the same shipment
You can claim preference for different goods on the same document. You’ll need to clearly identify the goods that are originating and non-originating. There is no fixed method for doing this - the only requirement is that those goods are clearly indicated.
Example if you have Chinese origin goods, French origin goods and GB origin goods in the same shipment, you must identify the origin per goods line.
The rules of origin allow for GB and EU goods to qualify for preference, so the goods of GB and FR goods will attract a zero duty rate (as long as not a product with a commodity code which attracts duty regardless), the goods of Chinese origin will incur duty…your still apply the statement of origin to the whole invoice.
To benefit from preferential tariffs when importing into the UK from the EU (or importing into the EU from the UK), the importer is required to 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 qualifies by nature of its origin made out by the exporter and displayed in a commercial export document (usually the commercial invoice)
- the importer’s knowledge that the product is originating
Importers knowledge – what does it mean?
‘Importers knowledge’ allows the importer to claim preferential tariff treatment based on evidence they hold 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, but the importer must inform us if they intend to claim preference using this method so that we can clause the import declaration accordingly. You need to be confident that the goods meet the rules of origin and if prompted by customs the importer you must make every effort to obtain suppliers declarations retrospectively. You are currently allowed to use Importer’s Knowledge until 31/12/2021.
Statement on origin and the Exporter’s Reference Number.
As previous e-mail, the text for a statement of origin is below. It can be found in Annex ORIG-4 of the EU-UK Trade and Cooperation Agreement
When exporting to the EU you must include your EORI number in any statement you issue to your EU customer, regardless of the value. For example shipping from UK to ROI.
You do need to insert your EORI number into the statement of origin even though it appears elsewhere in the document.
When exporting from the EU to the UK a statement of origin can be inserted into the commercial invoice by the EU supplier/exporter where the value of the consignment is 6,000 euros (currently £5,700) or less. It does not need an Exporter Reference Number.
If the value of the goods is above this amount the EU exporter must have a Registered Exporter (REX) number and include it in the statement. This is important to consider if you are creating a commercial invoice, where preference is claimed, on behalf of your German business for example.