We have already written about Rules of Origin several times but as these new rules could have major financial implications for members, we make no apologies for repeating the advice.
This is a totally new area, not only for members, but also for the Federation but we are trying to build our knowledge and understanding in an effort to support members.
The start point is to determine if a product is ‘wholly obtained’ to ensure it can be classified as originating in GB. If all the raw materials are grown, reared or processed in the GB then it can be classified and ‘wholly obtained’.
If, however, you are using ingredients from a Third Country (this includes the EU) then you need to consider three basic rules:
- The ad-valorem or valued added rule.
- The change of tariff classification.
- Manufacture from certain products or through specific processes.
In order for goods to benefit from the preferential treatment under the Trade and Co-operation Agreement (TAC) members will need to declare the origin of goods on the Customs Declaration.
It will be important to have proof of the origin of products otherwise the tariff-free status will be denied resulting on future liabilities.
As already advised before, goods that come in from the EU and customs cleared into GB will then be liable for tariffs if delivered into the Republic of Ireland and Northern Ireland, unless “sufficiently worked or processed”. We cannot provide guidance here on this as each product differs in what this means.
The Federation continues to build knowledge on this topic. We also now have links to experts in this area.
Should members require support then please email us on email@example.com.