The Customs (Origin of Chargeable Goods: Trade Preference Scheme) (EU Exit) Regulations 2020

 

Introduction

This notice should be read in conjunction with:

• the Customs (Origin of Chargeable Goods: Trade Preference Scheme) (EU Exit) Regulations 2020 (“the Origin Regulations”)
• the Trade Preference Scheme (EU Exit) Regulations 2020 (“the TPS Regulations”)

 

1. The following text has Force of Law by virtue of regulations 3(e), 4 and 5 of the Customs (Origin of Chargeable Goods: Trade Preference Scheme) (EU Exit) Regulations 2020

Definitions

For the purpose of this notice:

• beneficiary country means a qualifying GSP country which has the meaning given in regulation 4(1) of the TPS Regulations
• GSP means the Generalised Scheme of Preferences established under regulation 3 of the TPS Regulations
• identical goods mean goods that are the same in all respects, including physical characteristics, quality and reputation, irrespective of minor differences in appearance that are not relevant to the determination of origin of those goods under the Origin Regulations
• importer means a person who imports an originating good and claims preferential tariff treatment for it
• origin declaration means a declaration made by an exporter in accordance with this notice for the purpose of enabling the identification of an originating good
• the Origin Regulations means the Customs (Origin of Chargeable Goods: Trade Preference Scheme) (EU Exit) Regulations 2020

the TPS Regulations means the Trade Preference Scheme (EU Exit) Regulations 2020

 

Claims for preferential tariff treatment

Unless otherwise specified, a claim for the preferential tariff treatment of goods meeting the requirements of the Origin Regulations must be made on the basis of an origin declaration made out by the exporter and must take the form of either:

• a GSP certificate Form A made out in accordance with Annex A; or
• a statement on origin provided on an invoice or any other commercial document that describes the goods concerned in sufficient detail to enable them to be identified and contains:
  • a declaration in the form set out in Annex B
  • the data elements identified in that Annex

A claim for preferential tariff treatment must be included in the customs import declaration.

By way of derogation, if an importer did not make a claim for preferential tariff treatment at the time of importation, HMRC shall grant preferential tariff treatment and repay or remit any excess customs duty paid provided that:

• the claim for preferential tariff treatment is made no later than two years after the date of importation
• the importer provides a valid origin declaration
• the goods would have been regarded as originating from the beneficiary country under the Origin Regulations and would have satisfied all the requirements of this notice had the claim been made by the importer at the time of importation

 

Conditions for making out an origin declaration

An origin declaration must be made out by any exporter operating in a beneficiary country for any consignment provided that the exporter making out the origin declaration:

• maintains appropriate commercial accounting records concerning the production and supply of goods qualifying for preferential tariff treatment
• shall be prepared to provide at any time, at the request of the customs or other competent governmental authorities of the exporting country, all supporting documents or written statements from producers and suppliers which evidence a claim that the goods are originating.

 

Supporting documents may include documents relating to the following:

• the processes carried out on the originating good or on materials used in the production of that good
• the purchase of, the cost of, the value of, and the payment for the good
• the originating status of, the purchase of, the cost of, the value of, and the payment for all materials, including, where relevant, indirect material used in the production of the good and which have been relied on by the exporter in determining the regional value content of the good
• where cumulation under regulation 15, 16, 17 or 18 respectively of the Origin Regulations is applied:
  • in the case of bilateral cumulation with the UK[1], an origin declaration provided by the UK exporter made out in accordance with this notice
  • in the case of bilateral cumulation with the EU, Norway, Switzerland or a British Overseas Territory other than Gibraltar or the Sovereign Base Areas of Akrotiri and Dhekelia (OT), the proof of origin provided by the exporter and issued in accordance with the relevant rules of origin of the EU, Norway, Switzerland or OT, as the case may be
  • in the case of intra-regional cumulation or inter-regional cumulation, the origin declaration provided by the exporter
  • in the case of extended cumulation, the proof of origin provided by the exporter in the TA country (as defined in regulation 18(1) of the Origin Regulations) issued in accordance with the provisions of the relevant trade arrangement between the UK and the TA country concerned
• In the cases referred to in paragraphs (a), (b), (c) and (d), Box 4 of the certificate Form A or the invoice or other commercial document in the case of an origin declaration must contain whichever of the following indications is applicable: “UK bilateral cumulation”, “OT bilateral cumulation”, “EU bilateral cumulation”, “Norway bilateral cumulation”, “Switzerland bilateral cumulation”, “intra-regional cumulation”, “inter-regional cumulation”, “extended cumulation with country x” where “x” is the TA country.

 

An origin declaration:

 

• must be made out in English and, if handwritten, completed in ink
• must bear the signature of the exporter
• may be sent electronically from the exporter to the importer

An exporter may make out an origin declaration after exportation of the goods to which it relates if:

 

• it was not issued at the time of exportation because of errors or involuntary omissions or special circumstances
• it was issued but was not accepted at importation for technical reasons
• the final destination of the goods concerned was determined during their transportation or storage and after splitting of a consignment, in accordance with the Origin Regulations.

 

Validity of an origin declaration

An origin declaration shall be valid for a period expiring two years after the date on which it was made out and may be presented to HMRC within this period.

Origin declarations submitted after the expiry of their validity period may be accepted where the failure to submit them is due to exceptional circumstances.

Origin declarations shall apply to:

• a single shipment of originating goods
• multiple shipments of identical goods which:
  • are imported within the framework of frequent and continuous trade flows of a significant commercial value not exceeding 12 months
  • are the subject of the same contract of sale
  • are classified in the same code (eight digits) of the Combined Nomenclature
  • come exclusively from the same exporter, are destined for the same importer, and are made the subject of entry formalities at the same customs office in the UK

On request of the importer, where unassembled or disassembled products falling within Section XVI or XVII or heading 7308 or 9406 of the Harmonised System are imported in instalments for transport or production reasons, a single origin declaration for such products may be used in accordance with the requirements laid down by HMRC.

 

Exemptions from origin declaration requirements

Personal goods and those imported by way of trade shall be exempted from the obligation to make out and produce an origin declaration:

The goods referred to above must meet the following conditions:

• their total value does not exceed £1000
• they have been declared as meeting the conditions for benefiting from the Origin Regulations
• there is no doubt as to the veracity of that declaration

Discrepancies and errors

Slight discrepancies discovered between the statements made in an origin declaration and those made in the documents submitted to the customs office for the purpose of carrying out the formalities for importing the goods shall not in themselves render the origin declaration null and void if it is duly established that that it does correspond to the goods submitted.

Obvious errors on an origin declaration shall not cause it to be rejected if these errors are not such as to create doubts concerning the correctness of the statements made.

Replacement of origin declarations

Where originating GSP goods not yet released for free circulation in the UK are placed under customs control, the UK re-consignor may replace the initial origin declaration (GSP certificate Form A or statement on origin) by one or more replacement statements on origin for the purposes of sending all or some of the products to Switzerland.

Where an origin declaration is replaced, the UK re-consignor shall indicate the following on the initial origin declaration:

• the particulars of the replacement statement on origin
• their name and address
• the name and address of the consignee or consignees in Switzerland

The initial origin declaration must be marked “Replaced”.

The re-consignor shall indicate the following on the replacement statement on origin:

• all the particulars of the re-consigned goods taken from the initial origin declaration issued by the beneficiary country
• the date on which the initial origin declaration was made out
• the particulars of the initial origin declaration including references to any cumulation
• their name, address and EORI number
• the name and address of the consignee or consignees in Switzerland

The replacement statement on origin must be marked “Replaced”

 

Re-consignments from Switzerland shall be accompanied by an origin declaration in the form of a statement on origin made out by a Registered Exporter.

Annex A

Making out a GSP Form A

 

The [GSP Form A:](https://www.gov.uk/guidance/completing-generalised-scheme-of-preferences-form-a)

must bear a serial number, printed or otherwise, or, where there is no serial number, a reference to the commercial invoice by which it can be identified does not need to be stamped and signed by an authority designated by the beneficiary country, so does not need to be an original

Box 1

Enter the full name and business address of the exporter.

Box 2 Consignee

The completion of this box is optional, but you are recommended to enter the name and address of the consignee where this is known. For exports to exhibitions which are later sent on to the UK, insert also the name and address of the exhibition.

Box 3 Transport details

You should complete this box on the basis of available information. If you do not have details of the transport arrangements, then leave this box blank.

Box 4 For official use

This box is reserved for the use of the certifying authority. However, if the Form A has been made out after the goods have been shipped, stamp or write “Issued Retrospectively”.

Box 5 Item number

If different types of goods are shown separately on the invoice(s), show each type separately on the Form A and itemise them (1, 2, 3 etc), so they can be cross-checked to the invoice if necessary.

Box 6 Marks and numbers

Enter the identifying marks and numbers that appear on the packages. If the packages are marked with the address of the consignee, state the address. If they are not marked in any way, put ‘No marks and numbers’. If both originating and non-originating goods are packed together, add ‘Part contents only’ at the end of each entry.

Box 7 Number and kind of packages, description of goods

Bulk Goods

Identify the goods by giving a reasonably full commercial description e.g. ‘photocopiers’ or ‘typewriters’ rather than ‘office machinery’. However, if the invoices give full identifying details (which need not necessarily include details of the marks and numbers of the packages) only a general description is needed. For goods in bulk which are not individually packed, insert ‘In bulk’. The quantity shown must be the same as, or relatable to, the quantity shown on the invoice for the goods (e.g. if the invoice shows 100 cartons and these are loaded on to 10 pallets, specify ‘100 cartons’ NOT ’10 pallets’).

Mixed consignments

For consignments containing both originating and non-originating goods, describe only the originating goods on the Form A. You may be unable to avoid showing originating and non- originating goods on the same invoice. In this case, mark the invoice (for example, with an asterisk) to show which goods are non-originating and put an appropriate statement in Box 7 immediately below the description of the goods, e.g. ‘Goods marked * on the invoice are non-originating and are not covered by this Form A’. The same considerations will apply if you have a mixed consignment of goods qualifying by virtue of a derogation and others which are not covered by that derogation.

Unused space

Draw a horizontal line under the final item in this box and rule through the unused space with a ‘Z-shaped’ line.

Box 8 Origin criterion

This box signifies to HMRC which origin rule has been applied to the goods.

As described in the note about it on the reverse of the Form A, enter the code:

• “P” for wholly obtained goods and
• “W”, followed by the heading, where the goods have been sufficiently processed

For example:  for wholly obtained goods of, say, heading 96.18, the indication should read: “P” and for sufficiently processed goods of the same heading, it should read: “W” 96.18.

Failure to complete this box correctly could lead to the rejection of the Form A.

Box 9 Gross weight or other quantity

Insert the quantity in metric units (e.g. kilograms, litres etc).

Box 10 Number and date of invoice

You are recommended to enter the details of the commercial invoice as this ensures the signatory has verified the ex-works price.

Box 11 Certification

This field may be left blank.  As of 1 January 2021, the UK no longer requires the Form A to be certified by a designated authority in the exporting GSP country.

Box 12 Declaration by the exporter

Complete this box by inserting the name of the country in which the goods are considered to have originated. You should take into account that where the provisions for regional cumulation have been applied, that country may not be the same as the country of final processing or the country of exportation. For the importing country you must put ‘United Kingdom’. Indicating a different donor country (e.g. Canada) could lead to the Form A not being accepted. Only the exporter, or a person duly authorised by the exporter, can sign this declaration. Forwarding agents acting simply in that capacity are not exporters and must not sign this box. By signing this form, you declare that the goods qualify under the provisions of the Trade Preference Scheme (EU Exit) Regulations 2020 and the Customs (Origin of Chargeable Goods: Trade Preference Scheme) (EU Exit) Regulations 2020. If the declaration is incorrect, you will have committed an offence which may incur penalties.

Annex B

Making out a statement on origin

A statement on origin (including a replacement statement on origin) must:

• be made out on an invoice or any other commercial document that describes the goods in sufficient detail to enable them to be identified
• include the following data elements:
  1. exporter’s name and business address
  2. date of direct shipment to the UK
  3. other references, e.g. purchase order no.
  4. consignee’s name and business
  5. purchaser’s name and address (if not the consignee)
  6. country of transhipment
  7. country of origin of the goods. If the shipment includes goods of different origins, enter details against data element 12
  8. transportation details
  9. terms of sale
  10. currency
  11. number of packages
  12. specification of commodities (kind of packages, marks and numbers, general description and characteristics, i.e. grade, quality)
  13. quantity
  14. unit price
  15. total price
  16. net weight
  17. gross weight
  18. invoice total

 

• include the text below incorporating the information required by the footnotes.

The exporter of the products covered by this document (customs identification No…. (1)) declares that, except where otherwise clearly indicated, these products are of …. (2) preferential origin in accordance with the rules of origin of the Generalised Scheme of Preferences of the UK and that the origin criterion met is … … ( 3 ).

(Place and date (4))

(Name and signature of the exporter)

• Enter your customs identification number if allocated. Exporters in the UK exporting goods under bilateral cumulation, or UK re-consignors re-exporting goods to Switzerland should enter their Economic Operators Registration and Identification (EORI) number.
• Enter the origin of the goods.
• Products wholly obtained: enter the letter ‘P’; Products sufficiently processed: enter the letter ‘W’ followed by a heading of the Harmonised System (example ‘W’ 9618).
• This may be omitted if included in the document itself.

 

[1] The UK includes Jersey, Guernsey and the Isle of Man