PREFERENTIAL RATE OF DUTY POSSIBLE FOR TRADING BETWEEN THE EU AND THE UK
Anyone who transports goods between the European Union and the United Kingdom from the 1st of January 2021 may be able to claim a preferential rate of duty. This means that the goods are released to free circulation and will be free of Customs Duty.
This requires the following steps. To claim preferential rates of duty in the United Kingdom, a product must originate in the European Union. This means the goods have to meet the rules of origin requirements with the rules of origin and that it is possible to prove that the goods meet them. It is the importer that can benefit tariffs who is required to declare they hold proof that the goods comply with the rules of origin.
In summary the preferential rate can be claimed by a statement on origin that the product is originating, made out by the exporter, and the importer’s knowledge that the product is originating, made out by the importer.
Statement on origin
United Kingdom
If the value of the consignment is 6,000 euros (converted 5,700 pounds) or less, the statement on origin for UK-import can be made out by any EU-exporter. Above this amount the exporter must have a Registered Exporter (REX) number and include it in the statement.
European Union
For imports into the European Union, the UK exporter must include its GB EORI number in any statement they issue to the EU-importers, regardless of the value.
The statement on origin must be provided on an invoice, or any other commercial document, describing the originating product in sufficient detail to enable its identification. The validation will be valid for 2 years from the date it was made out on imports into the United Kingdom and 12 months for imports into the European Union.
Requirements for a Statement on Origin. The text should read as follows (without the numbers and footnotes):
(Period: from___________ to __________ (1*))
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)
…………………………………………………………….............................................
(Name of the exporter)
1) If multiple shipments of the same product mention the period in which the products are shipped.
2) Exporter’s GB EORI number or exporter’s Registered Exporter (REX) number.
3) United Kingdom or European Union.
4) Place and date need to be mentioned if they are not on the document that shows this text.
Importers knowledge
The ‘Importers knowledge’ allows the importer to claim preferential rates of duty based on evidence he has obtained 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. The importer is making a claim using their own knowledge, therefore no statement on origin has to be provided by the exporter or producer.
Suppliers’ declarations
Until 31st of December 2021 anybody who is claiming preference on the basis of the importer’s knowledge or making out a statement on origin, does not need to hold a supplier’s declaration at the time he is claiming preference for goods imported from or to the EU. However, the importer must be confident that the goods meet the rules of origin.
Northern Ireland
Northern Ireland applies UK import duties and rules on imports from third countries. Only for goods that are likely to be are transited to the EU, EU import duties and rules are applied. This also applies to preference on claiming preferential rates of duty. Goods originating in Northern Ireland are NOT considered to be of preferential EU origin when exported.
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