Preferential rules of origin: 3 key steps
Anna Jerzewska
Founder of Trade and Borders, EuroCommerce Rapporteur on Customs, Customs and International Trade Lead at Cbamboo
Published 28 Apr 2024
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Preferential origin is one of the most misunderstood areas of customs compliance — this video sets out the three universal steps a company must follow to use reduced tariffs under any trade agreement, wherever in the world it operates.
Topics covered:
- Why there is no single "preferential UK origin" (or any single-country preferential origin) — rules of origin are negotiated separately in every trade agreement
- The difference between non-preferential origin (the default, on every customs declaration) and preferential origin (agreement-specific)
- Checking whether a product is in scope of an agreement and whether the tariff discount is worth the compliance effort
- Step 1: product-specific rules of origin, based on the commodity code, and the "wholly obtained" and "substantial transformation" principles (change of tariff classification, value-added rule, specific processing, or a mix)
- Step 2: wider origin requirements, including direct-transport/shipment conditions and simplifications such as accumulation and tolerance
- The post-Brexit "Percy Pig" sweets case as an example of what happens when wider origin requirements are overlooked
- Step 3: certification, and the difference between third-party certification (e.g. via Chambers of Commerce) and self-certification, including who can certify (exporter or, increasingly, importer)
For a broader overview of the topic, please watch the full recording. The slides are available in the Resources section.
Please note that this summary was generated using AI, based on the recording and available slides.