Bedfordshire Chamber of Commerce


Now that we’re out,


are your goods still eligible?


T e UK’s continued membership of the European Union Single Market and Customs Union during the transition period meant that businesses were able to trade with the EU tariff -free without the need for customs declarations or meeting rules of origin. As we are all aware, after December 31, 2020, the transition period ended, meaning from January 1, 2021 we have moved to trading based on a new Free Trade Agreement – the Trade and Cooperation Agreement (TCA) between the UK and the EU. To benefi t under the TCA, goods will have to be of UK or EU origin,


meaning they must meet the UK-EU preferential origin rules. T ese rules are set out in the TCA and determine the origin of the goods based on where the products or materials used in the production come from. T eir purpose is to ensure that the preferential tariff s are only given to goods that originate in the UK or EU and not from third countries. Goods that do not meet the rules can, of course, still be traded but


they will not be able to benefi t from preference under the TCA and may have to pay the standard tariff s that the UK and the EU apply to imports. For exports to the EU, this is their Common External Tariff . Likewise, for imports to the UK, this is the UK Global Tariff .


What are originating products? T ere are two ways in which a product can be considered ‘originating’. -


include animals born and raised, vegetables and plants grown, fi sh caught in UK waters or minerals extracted from the soil in a single country. -


It can be wholly obtained. Examples of wholly obtained goods


the customs declaration and declare that they hold proof that the goods meet the rules of origin. A proof of origin is used by the importer to


It has been substantially transformed in line with the relevant


product-specifi c rule. T ere are three basic rules used to decide if goods are suffi ciently transformed: the value-added rule; the change in tariff classifi cation and the manufacture of certain products or though specifi c processes.


Full details can be found in the TCA to help business determine the origin of their products.


Claiming preference treatment under the TCA In order for businesses to benefit from preferential tariffs when importing into the UK or EU, preference will need to be claimed on


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demonstrate that the goods qualify as originating and are eligible to claim preference. The TCA confi rms that this proof can be in the form of: - A Statement of Origin completed by the exporter on a commercial document, or - Knowledge obtained and held by the importer that the goods are originating.


Importers must have proof of the originating status of the product before claiming preference. If you are an exporter, you must hold evidence


that the goods meet the relevant rules of origin before issuing a Statement of Origin. Justin Richardson, CEO of Bedfordshire Chamber of Commerce said: “Origin matters more


ALL THINGS BUSINESS


Justin Richardson CEO, Bedfordshire Chamber of Commerce.


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