Import preference - 2022 proof of origin requirements for trade with the EU

Following Brexit, in 2021, the UK and EU agreed that they would not initially require exporters to hold supplier declarations in order to support the origin of their goods where preferential tariff treatment was claimed in trade between the parties.  This changes in 2022, when exporters must hold suitable proof of origin when they make such a claim.

It was always envisaged, however, that the UK and EU customs authorities would be able to retrospectively request proof of origin for goods that were shipped during 2021. It follows that the rules specified in the trade agreement between the EU and the UK apply equally in 2021, 2022 and beyond.

The key rules concerning proof of origin contained within the agreement are listed below. The UK has published the agreement at the following location:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/982648/TS_8.2021_UK_EU_EAEC_Trade_and_Cooperation_Agreement.pdf

Section 2 Article 54 of the trade agreement provides that a claim for preferential tariff treatment shall be based on:

1. A statement of origin that the product is originating made out by the exporter.

2. The importer’s knowledge that the product is originating.

Regarding statements of origin, Section 2 Article 56 provides that:

1. The exporter is responsible for the accuracy of the statement.

2. It should be made in the prescribed format in one of the languages of the EU:

(Period: from … … … … … to … … … … …)

The exporter of the products covered by this document (Exporter Reference No. … … … … …) declares that, except where otherwise clearly indicated, these products are of United Kingdom or Union preferential origin.

… … … … … (Place and date)

… … … … … (Name of the exporter)

The specified period only applies in the case of multiple shipments of identical originating products.

The specified “Exporter Reference” will typically be the Registered Exporter (REX) registration in the EU and the Economic Operator Registration and Identification (EORI) number in the UK. Alternatively in the EU, if the consignment is below €6,000 or a long-term declaration is being used as opposed to a statement on a shipping document, it can also be the EORI.

The place, date and exporter can be omitted if this information is contained in the document that bears the statement.

3. It shall be valid up to 12 months or up to 24 months if required by the Importer.

4. The statement might apply to a single shipment or multiple shipments over a period not exceeding 12 months.

In relation to importer’s knowledge, Section 2 Article 58 provides that:

1. The importer must be able to prove that the imported goods comply with the rules of origin.

2. Where commercially sensitive information is required to prove the origin of the goods, the importer can rely on a statement of origin provided by the exporter to claim preferential status.

Although it is not specified in trade agreement between the EU and the UK, when exporting from the EU to the UK a statement on origin on a shipping document can be made out by any exporter where the value of the consignment is €6,000 or less. Above this amount, the EU exporter must have a REX number and include it in the statement.

The same does not apply in the case of long-term supplier declarations, where there is no requirement to enter a REX number. Here an EU EORI can be used even if the value of the goods that might be shipped in the period covered by the declaration exceeds €6,000.

When exporting from the UK to the EU the statement should include the EORI number of the supplier, regardless of the value.

In relation to the import customs declarations in CHIEF, the following document statements are likely to be applied in box 44:

DS=U110–[JE]REFERENCE – Preference based on a statement on origin for a single shipment; this code will typically be declared with status code JE, i.e. document, which only applies to this entry, held by importer.

DS=U111–[JP]REFERENCE – Preference based on statement on origin for multiple shipments of identical products; this code will typically be declared with status code JP, i.e. document, which applies to multiple entries, held by importer.

DS=U112–[JP]REFERENCE – Preference based on importers knowledge; this code must be declared with status code JP.