Updated: Dec 7, 2021
(S,P) In 2022, supplier declarations to support proof of origin become mandatory in the EU and the UK. Are you ready?
What are the rules of origin?
Businesses need to have information about rules of origin and how to use preferential tariffs when they buy and sell goods with the EU or the UK.
Rules of origin and how to use preferential tariffs for trade between the UK and EU Rules of origin are one of the most important trading requirements you need to understand and meet if your business buys or sells goods internationally.
These rules are used in trading agreements between different countries, like the EU-UK’s deal - called the Trade and Cooperation Agreement (TCA).
The rules are used to determine the country of origin of goods being imported and exported and whether they’re eligible for preferential tariffs. The preferential zero tariffs in the EU-UK TCA mean that if you buy goods from the UK or the EU and bring them into the EU or the UK, and they meet the rules of origin in the TCA, you will not need to pay any customs duty on those imports. Your UK or EU customers will be able to do the same for goods they buy from the EU or UK respectively.
To benefit from preferential tariffs, you must have proof that:
• goods you import into the UK from the EU originate in the EU
• goods you import into the EU from the UK originate in the UK
• goods you export from the UK to the EU originate in the UK
• goods you export from the EU to the UK originate in the EU
What is ‘origin’
By 'origin' we mean where goods (or the materials, parts or ingredients used to make them) have been produced or manufactured. It is not where the goods have been shipped or bought from.
Rules of origin are not the same for all types of goods.
Different kinds of goods face different rules and specifications, called product-specific rules, so you need to check the individual rules for your goods.
You can find more information about rules of origin when trading between the UK and EU on our “Rules of Origin” Hub. This is also where you can watch the Rules of Origin recorded webinar for information on how to check if your goods meet the rules of origin requirements.
How to prove the origin of goods traded between the EU and the UK and vice versa
To benefit from preferential tariffs, the rules of origin requirements in the TCA must be met for:
• goods imported into the UK from the EU, and
• goods imported into the EU from the UK.
UK and EU importers will need to have one of the following proofs of origin:
• a statement on origin that the product is originating, made out by the exporter
• the importer’s knowledge that the product is originating You can find more information about how to prove the origin of goods you trade between the UK and EU on our expert blog on www.customsmanager.org
New requirements for supplier declarations from 1 January 2022
For some goods, the exporter may also need to hold supplier declarations. Supplier declarations are documents that your supplier provides to you, that help you establish whether the goods you’re exporting meet the product specific rules of origin. These are needed as supporting evidence to confirm the origin of the goods, when the manufacture alone is not enough to meet the product specific rules of origin.
From 1 January 2022, if you make out statements on origin for goods you export to the EU, you must have supplier declarations (where needed) at the time you export your goods.
Between 1 January and 31 December 2021, you have been allowed to export goods to the EU or the UK using preferential tariffs without supplier declarations, as long as you were confident that these goods met the rules of origin.
Also see below to download the guidance available
This was to allow you more time to get your supplier declarations afterwards.
This temporary easement will end on 31 December 2021 and you must hold supplier declarations for goods you’ve exported this year. If you cannot provide a supplier declaration, or other suitable evidence, to confirm the origin of goods you exported to the EU or the UK between 1 January and 31 December 2021, you must let your UK or EU customer know.
If you’re asked to verify the origin of your goods and you can’t provide this supporting evidence:
your EU or UK customer will be liable to pay the full (non-preferential) rate of customs duty,
you may be charged a penalty, and
you may be excluded from using preferential tariffs going forward.
Download the legislation in the EU and UK
Essential, online Customs & Global Trade Support
You can find more information about using supplier declarations to support a proof of origin on our expert blog on cusotmsmanager.org and our Rules of Origin Information Hub. Moreover, we offer three training specifically helping you to get to grips with rules of origin and supplier declarations:
3. Live Training: Leverage Trade Agreements Effectively
Where to find even more help and support
For online support, join our educational live webinars, subscribe to insightful short Twitter updates and informative YouTube videos, and stop by at our expert blog page, updated weekly: https://www.customsmanager.org/customs-global-trade-blog
Join us on Linked In, too: www.linkedin.com/company/customs-manager-ltd
We also offer a resources hub that covers a lot of topics, videocasts and step by steps guidance: https://www.customsmanager.org/ -> Resources
There are regular customs and global trade update sessions to discuss what is coming up: https://www.customsmanager.org/customs-and-global-trade-update
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