The Rules of Origin can be complex, particularly since Brexit. Whilst new rules have been in place since the start of 2022, they appear to have been applied with a light touch. However, now almost 2 years on, it seems prudent to seek a more rigid adherence.
In terms of documentation, specifically for imports, in order to claim preferential treatment, there are certain requirements. This post attempts to explain in simple terms such options.
One option is for the exporter to provide a statement of origin on commercial documentation. It can be in a separate document but must be provided together with the commercial documents. Where the value of the consignment is under €6,000, such declaration is sufficient.
However, where the value is €6,000 or greater, this must be supported by a REX number, which must be stated in addition to the ‘Statement of Origin’. If there is no such REX number stated, then you cannot claim preference and any duties applicable would be chargeable.
Alternatively, there is an option called ‘importers knowledge‘ that allows the importer to claim preferential tariff treatment based on their own knowledge about the originating status of imported products. It can be used as an alternative to a statement on origin provided by the exporter.
As the importer is making a claim using their own knowledge, the exporter or producer does not need to do anything to officially state the originating status of the goods. However, as this option requires the importer to have knowledge that the products meet the relevant rules of origin, the exporter or producer may have to provide information about the production to the importer. This may be in addition to other information (such as supporting documents or records) which the importer may already have.
The key here is that the importer must be able to provide satisfactory evidence to HMRC if they are relying on this option.
It is also possible to hold a long-term supplier’s declaration which likewise must be produced in the event of queries by customs authorities.
When we submit a customs entry to HMRC, we must state if one of the above applies. If we cannot, then we must submit ‘no declaration’, in which case the imported consignment will lose any preference and any duties applicable would be chargeable.
One other anomaly worth a mention is that where the country of origin is not in the EU, but where a trade agreement is in force, any preference that may be applicable is only accepted if the consignment is coming directly from the country of origin. So if, for example, a consignment is coming from Italy, but has a Turkish origin, it fails to test and preference cannot be claimed.
Various templates are listed below, and you will note that the first includes the ‘Exporter Reference number’ which refers to the aforementioned REX number.
The statement of origin provided by an EU exporter format is as follows:
The exporter of the products covered by this document (Exporter Reference No ____ (2)) declares that, except where otherwise clearly indicated, these products are of ____ (3) preferential origin.
(Place and date) _________________________(4)
(Name of the exporter) ____________________
Footnotes:
1 If the statement on origin is completed for multiple shipments of identical originating products within the meaning of point (b) of Article 56(4) [statement on origin] of this Agreement, indicate the period for which the statement on origin is to apply. That period shall not exceed 12 months. All importations of the product must occur within the period indicated. If a period is not applicable, the field may be left blank.
This document has been agreed between the European Union and the United Kingdom and is provided for information only. No rights may be derived from it until the date of application. The numbering of the articles is provisional.
2 Indicate the reference number by which the exporter is identified. For the Union exporter, this will be the number assigned in accordance with the laws and regulations of the Union. For the United Kingdom exporter, this will be the number assigned in accordance with the laws and regulations applicable within the United Kingdom. Where the exporter has not been assigned a number, this field may be left blank.
3 Indicate the origin of the product: the United Kingdom or the Union.
4 Place and date may be omitted if the information is contained on the document itself.
The statement of origin provided by a UK exporter format is as follows:
I, the undersigned, declare that the goods listed on this document ________ (1) originate in _________ (2) and satisfy the rules of origin governing preferential trade with _________ (3):
I declare that (4):
I undertake to make available to the Customs authorities any further supporting documents they require:
_____________ (Place and date)
_____________ (Name and position in the company)
_____________ (Signature)
Footnotes:
1 If only some of the goods listed on the document are concerned, they shall be clearly indicated or marked and this marking entered in the declaration as follows: ‘….. listed on this invoice and marked ….. originate in …..’.
2 The UK, EU, country, group of countries or territory, from which the goods originate .
3 Country, group of countries or territory concerned.
4 To be completed only where goods are being exported to a country in the Pan-Euro-Med zone. Delete as appropriate.
Long term suppliers’ declarations can be supplied and the format is as follows:
I, the undersigned, declare that the goods described below:
______________________ (1)
______________________ (2)
which are regularly supplied to ________ (3), originate in_______ (4) and satisfy the rules of origin governing preferential trade with _________ (5):
I declare that (6):
I undertake to inform ________ (3) immediately if this declaration is no longer valid.
I undertake to make available to the Customs authorities any further supporting documents they require:
_____________ (Place and date)
_____________ (Name and position in the company)
_____________ (Signature)
Footnotes:
1 Description.
2 Commercial designation as used on the invoices (for example, model number).
3 Name of company to which the goods are supplied.
4 The EU, country, group of countries or territory, from which the goods originate.
5 Country, group of countries or territory concerned.
6 To be completed, where necessary, only for goods having preferential origin status in the context of preferential trade relations with one of the countries with which pan-euro-Mediterranean cumulation of origin is acceptable. Delete as appropriate.
7 Give the dates. The period shall not exceed 24 months or 12 months if the declaration was issued retrospectively.