EU-UK Preferential Tariff Treatment

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EU-UK Trade and Cooperation Agreement – Preferential
Tariff Treatment.  In force from 1st January 2021.

Note: in reading this document you should note that reference to United Kingdom (UK) should be taken as being only to Great Britain (GB), following the application of the Northern Ireland protocol agreement.

     

Under the EU-UK Trade and Cooperation Agreement, agreed between the EU 27 member states and the United Kingdom, tariff duties will be eliminated for trade between the EU and the UK where the relevant rules on origin are met. A claim for preferential tariff treatment for imports into Ireland can be made where the goods are of UK origin.

Claiming the preferential origin of a product is made by including a ‘statement on origin’ on an invoice or any other document that describes the product in sufficient detail to enable the identification of that product.

Rules of Origin can be complex, and you should ensure all of your obligations are met to legitimately claim origin whether importing from or exporting to Great Britain. There will be cases where products do not meet the rules and in such cases tariffs may apply.

Depending on the nature of operations, there may be deferments or reliefs of duties for goods that do not meet the origin requirements such as Inward Processing Relief, Outward Processing Relief and Returned Goods Relief.

Such reliefs generally need authorisations from Revenue unless done on an irregular or once off basis.

If in doubt seek professional assistance.

Further assistance on resources around rules of origin is available for IEA Members. You can also do a self assessment of your goods on the EU ROSA platform Rules of Origin Self Assessment. This will set out the requirements needed to confer origin. Select Ireland for country of origin and United Kingdom for country of destination or Vice Versa, and enter tariff/classification code.

ROSA LINK

An EU exporter using a ‘statement on origin’ is required to be registered on the Registered Exporter System (REX).

However, there is no requirement to be registered on REX where the consignment value is below €6,000.

Alternatively, a claim for preferential tariff treatment may be made based on ‘importer’s knowledge’. This allows the importer to claim preferential tariff treatment based on information in the form of supporting documents or records provided by the exporter or manufacturer, which are in the importer’s possession. These proofs must be retained for a minimum of 3 years.

Preferential Tariff Treatment Requirements for operators

Claims for preferential tariffs are included in the Customs import declaration.

The REX System

Irish exporters to the UK using a ‘statement on origin’ for consignments greater than €6,000 must register on the REX system.

The REX system is a system of self-certification by exporters who have been registered on REX by Revenue. It simplifies export formalities by allowing the registered exporter to certify the preferential origin by including a specific declaration on the invoice or another commercial document identifying the exported products. Thus, the registered exporter is not obliged to apply for a certificate of origin for each export.

Unregistered exporters may certify the origin of goods for consignments having a value which is below €6,000. Details on the authorisation to use the REX system, are available at the below link.

Link to Rex Revenue Page 

 

Technical & Practical Process in AIS & AEP 

Import Declaration Codes in AIS [Automated Import System] and AEP [Automated Entry Processing]

AIS –  IMPORTS

To claim preferential origin for UK origin goods for release into free circulation in the EU the following codes are used:

  • AIS Data Element 4/17 (Preference) should contain the code ‘300’.
    • AIS Data Element 5/16 (Country of preferential origin) is ‘GB’.
    • AIS Data Element 2/3 (Documents produced, certificates and authorisations,
    additional references), one of the following codes should be used:
    – Where the claim for preferential tariff treatment is based on a ‘statement on
    origin’ for a single shipment, use code “U116”.
    – Where the claim for preferential tariff treatment is based on ‘importer’s
    knowledge’, use code “U117”.
    – Where the claim for preferential tariff treatment is based on a ‘statement on
    origin’ for multiple shipments of identical products, use code “U118”.

AEP – IMPORTS

  • SAD box 36 (Preference) should contain the code ‘300’.
    • SAD box 34 (Country of origin) is ‘GB’.
    • SAD box 44 (Documents produced, certificates and authorisations, additional
    references), one of the following codes should be used:
    – Where the claim for preferential tariff treatment is based on a ‘statement on
    origin’ for a single shipment, use code “U116” followed by NAI.
    – Where the claim for preferential tariff treatment is based on ‘importer’s
    knowledge’, use code “U117” followed by NAI.
    – Where the claim for preferential tariff treatment is based on a ‘statement on
    origin’ for multiple shipments of identical products, use code “U118” followed
    by NAI.

Note: The type of SAD would be ‘IM’ as GB is not an EFTA country.

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For importing EU goods into the UK

UK Government Guidance on Preferential Duties EU-UK

If you’re importing goods into the UK, there’s a different way to claim the preferential rate of duty depending on which system you’re using to make your import declaration.

UK Importer using the Customs Handling of Import and Export Freight (CHIEF) system

Box Number

36                  Must include a Preference code in the 300 series

47c Filed 1   Must be Coded “A”

44                  Must include one of the following codes:

U110 – if the claim is based on a ‘statement on origin’ for a single shipment

U111 – if the claim is based on a ‘statement on origin’ for multiple shipments of identical  products to cover a 12-month

U112 – if the claim is based on importers knowledge (this must be declared with status code JP)

U110 and U111 must be declared with one of these status codes AE, AF, AG, AP, AS, AT, GE, GP, HP, JE, JP, LE, LP, UA, UE, UP, US, XA, XB and the commercial document reference number.

UK Importer is using the Customs Declaration Service (CDS)

Data Elements ( DE) 4/17   Must include a preference code in the 300 series

Data Elements (DE) 2/3     Must include one of the following codes:

  • U110 – if the claim is based on a ‘statement on origin’ for a single shipment
  • U111 – if the claim is based on a ‘statement on origin’ for multiple shipments of identical products to cover a 12-month
  • U112 – if the claim is based on importers knowledge (this must be declared with status code JP)

U110 and U111 must be declared with one of these status codes AE, AF, AG, AP, AS, AT, GE, GP, HP, JE, JP, LE, LP, UA, UE, UP, US, XA, XB and the commercial document reference number.

More Information from UK Government on Rules of Origin for UK-EU Trade found here:

UK Government Guidance Rules of Origin EU-UK

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For Irish Exporter/ Importer Queries See Below

Origin Section, Customs Division.

Email: origin&quotasection@revenue.ie

eCustoms Helpdesk
email: ecustoms@revenue.ie
Phone: 01 7383677
Outside Ireland: + 353 67 63139

Please note this article and it’s content has been created as an aid to preparing for Brexit and/or international trade. It is not intended to be construed as official, legal or advice of any kind. Operators should always check with their local customs Authority for legal or any other obligations under international Trade.

 

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