Jan 27th, 2021
3 mins
As highlighted in the Weekly Email last week, the implication of the Free Trade Agreement (FTA) is now becoming clear with members now having to understand the impact of the Rules of Origin.
As the FTA was only bilateral, meaning that only products, raw materials and finished goods that are produced in the EU and UK are tariff-free. If raw materials or finished goods come from a ‘third country’ then movement within the EU and UK are not tariff-free.
Whilst there is an allowance that third country ingredients and raw materials up to 15% of the final weight can be allowed in many instances without a tariff being incurred, this is not the case in all products. The rule of ad-valorem or ‘value added’ is the basis for determining if a product which contains ingredients from a ‘third country’ can be deemed to originate from the UK and is thus tariff-free when being sold to the EU.
Defra are running a number of category specific webinars in an effort to explain the rules and regulations. We will try to highlight when these are taking place and the BFFF team members are also taking part in the calls in an effort to build up our understanding.
To illustrate the rules complexity, chicken from Thailand made into chicken nuggets would be tariff-fee. The same chicken used in a ready meal – anything above 15% of the final weight of the finished product would attract a tariff if sent to the EU. (Remember that both Republic of Ireland and Northern Ireland are in the EU).
There is a lot of support on the Government website and you can get to the site by clicking here.
Related Articles & Webinars
News
Oct 10th, 2024
8 mins
4 QUESTIONS TO ASK BEFORE BUYING INSULATED PACKAGING BOXES FOR COLD SHIPPING
News
Oct 10th, 2024
2 mins
