Businesses often forget that their manufacture needs to go beyond minimal processing operations to qualify for lower or zero duty, says Arne Mielken of Customs Manager Ltd.
Prior to looking at the product-specific rules, a set of general rules, often forgotten, also need to be met, or preferential trade is not available.
Where a business uses non-originating materials, your production process needs to go beyond minimal operations, even if your product complies with the product-specific rules. Such operations include simple packaging operations, simple assembly, ironing or pressing of textiles, painting or polishing operations, let's take a closer look at the 15 operations types which disqualify a company from claiming preference under the EU-UK TCA.
Article ORIG.7: Insufficient Production
1. Notwithstanding point (c) of Article ORIG.3(1) [General requirements], a product shall not be considered as originating in a Party if the production of the product in a Party consists only of one or more of the following operations conducted on non-originating materials:
1. Preserving Operations
(a) preserving operations such as drying, freezing, keeping in brine and other similar operations where their sole purpose is to ensure that the products remain in good condition during transport and storage. (Preserving operations such as chilling, freezing or ventilating are considered insufficient within the meaning of point (a), whereas operations such as pickling, drying or smoking that are intended to give a product special or different characteristics are not considered insufficient).
2. Breaking Up
(b) breaking-up or assembly of packages;
(c) washing, cleaning; removal of dust, oxide, oil, paint or other coverings;
(d) ironing or pressing of textiles and textile articles; (e) simple painting and polishing operations;
5. Husking, milling etc (Rice)
(f) husking and partial or total milling of rice; polishing and glazing of cereals and rice; bleaching of rice;
(g) operations to colour or flavour sugar or form sugar lumps; partial or total milling of sugar in solid form;
7. Peeling, stoning, shelling
(h) peeling, stoning and shelling, of fruits, nuts and vegetables;
8. Sharpening, grinding or cutting
(i) sharpening, simple grinding or simple cutting;
9. Sifting, sorting etc.
(j) sifting, screening, sorting, classifying, grading, matching including the making-up of sets of articles;
10. Simple packaging operations
(k) simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards and all other simple packaging operations;
11. Affixing logos
(l) affixing or printing marks, labels, logos and other like distinguishing signs on products or their packaging;
12. Simple mixing
(m) simple mixing of products, whether or not of different kinds; mixing of sugar with any material;
13. Simple dilution
(n) simple addition of water or dilution with water or another substance that does not materially alter the characteristics of the product, or dehydration or denaturation of products;
14. Simple assembly
(o) simple assembly of parts of articles to constitute a complete article or disassembly of products into parts;
15. Slaughter of animals
(p) slaughter of animals.
About Customs Manager Ltd.
We are on a mission to empower people with import, export and transport responsibilities with helpful advice, insightful training and relevant trade intelligence services. We offer consultancy and expert advice, training (live, in-house and on-demand), support for your import and export business and customs clearance/broker services into the UK (Great Britain) and Northern Ireland. We devote all our passion and energy to helping businesses grow faster cross-border. Working with us means having your own multilingual Customs Manager on standby to help you trade effectively, efficiently and, of course, compliantly, wherever you want to go in the world. We even file customs declarations for you.
Join us on social media
· LEAVE us a POSITIVE REVIEW ON GOOGLE
Hey, I got told I need to subscribe and pay to ready your expert blogs! Where is my free stuff?
Well, remember the old saying, there is no such thing as a free lunch! Expert content creation takes time and effort, not even mentioning the years of learning and studying the geeky subjects of customs, export controls and free trade agreements. So, if you like what we are doing, please help out and subscribe to our annual plan, allowing you to access expert content for a low price affordable to any business and any customs manager / global trade professional.
As a Premium Subscriber, you get VIP treatment and access to new, fresh content every week. You also get access to the entire library of advice, more than 400 blog entries and counting. We also monitor legislation for you and let you know of all the changes, so you never miss an important legal change. At the same time, you save valuable time by engaging our dedicated trade specialists to carry the monitoring out for them. Premium subscribers also unlock all other content on the Customs Manager’s Ltd. website, including our hubs and resources helping you to stay compliant in daily tasks. Being a paying subscriber provides you with vital thought leadership development to empower you to trade effectively, efficiently and, of course, compliantly, across borders. And if you want us to cover other countries than the EU, UK and a bit of the US, then just ask. Reach out in the chat or by email.
Customs Manager Ltd. owns the copyright in this information.
You are not allowed to use this information in any way that infringes the intellectual property rights in it. You may have to hold a valid licence to use this information. A licence can be obtained by becoming a Premium subscriber to the Customs Managers’ Trade Intelligence service. As a Premium subscriber, you may download and print this information which you may then use, copy or reproduce for your own internal non-profit-making purposes.
However, under no circumstances are you permitted to use, copy or reproduce this information with a view to profit or gain.
In addition, you must not sell or distribute this information to third parties who are not members of your organization, whether for monetary payment or otherwise.
This information is intended to serve as general guidance only and does not constitute legal advice. The application and impact of laws can vary widely based on the specific facts involved. This information should not be used as a substitute for consultation with professional legal or other competent advisers. Before making any decision or taking any action, you should consult a Customs Manager Ltd. professional.
In no circumstances will Customs Manager Ltd, be liable for any decision made or action was taken in reliance on the information contained within this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.