Proof of Origin under the EU-UK Trade and Cooperation Agreement (TCA)
The EU-UK Trade and Cooperation Agreement (TCA) that came into effect on January 1, 2021, changed the relationship between the European Union and the United Kingdom after Brexit. One of the main considerations in this agreement is the rules of origin (RoO), which determine whether a product is eligible for a preferential tariff treatment under the TCA. In order to claim preferential treatment, the product must meet specific criteria outlined in the agreement, including demonstrating proof of origin.
Proof of origin is a critical element in international trade as it determines the country of origin of the goods being traded and assists in determining the amount of customs duty payable on the goods. Under the TCA, a specific set of rules must be followed by exporters to claim preferential tariff treatment. Exporters must have a valid proof of origin, which is a document that provides information on the origin of the goods being exported.
The TCA defines origin as the „the country where the goods have been wholly obtained or have undergone sufficient working or processing that confers originating status.“ This means that the TCA requires that goods must have been produced or significantly transformed in the European Union or the United Kingdom to be considered as originating from either region.
To claim preferential treatment under the TCA, exporters must include a statement of origin on their commercial invoice or another appropriate document. This statement must contain specific information, including the exporter`s name and address, a description of the goods, the country of origin, and any other necessary information to demonstrate that the goods meet the rules of origin requirements.
Moreover, under the TCA, origin certification is required for certain goods to claim preferential treatment. In general, a certificate of origin (CoO) is issued by an authorized body in the exporting country which confirms that the goods being exported meet the origin criteria of the TCA. This certificate must be completed by the exporter or producer and filed with the customs authorities of the importing country.
In conclusion, understanding the rules of origin and having accurate and valid proof of origin documentation is essential to claim preferential tariff treatment under the EU-UK Trade and Cooperation Agreement. It is essential for exporters to ensure that their goods meet the specific criteria outlined in the TCA, and that they have all necessary documentation ready for presentation to customs authorities. Failure to comply with these requirements may result in additional duties or penalties being imposed, which could impact the profitability of your business.