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Posted Fri, 19 Mar 2021 08:33:37 GMT by Brian M
We process a product that is not considered a simple process (we use specialist/expensive equipment and skilled labour to process the product). When the product is imported it is of EU preferential origin and free of any tariff. After processing we export the product back to the EU and declare the material of EU preferential origin. However, some of our EU customers are being charged duty because the material is not of UK Preferential origin. When checking the EU/UK trade agreement it indicates that for our products to be of UK preferential origin the product classification (first 4 digits level of the Harmonised System) must change following processing. When we process the product, we are changing it dimensionally, but the product classification remains unchanged. If the product is of EU preferential origin and we have a free trade agreement why have EU customers been charged duty? As the only input is EU content, and the process is not simple and goes beyond insufficient processing can the product can be declared as originating in the UK?
Posted Fri, 26 Mar 2021 09:53:00 GMT by HM Government Admin1
Thank you for your post. Under the TCA, processing carried out in the EU on non-originating material can be cumulated with processing carried out in the UK. This allows the finished product to gain UK preferential origin if the combined processing meets the TCA origin rule. The processing carried out on the non-originating material in the EU should be evidenced by a supplier’s declaration. There are the specific rules that set out, for every product based on the Harmonized System (HS) code, what the requirements are for that product to be considered as ‘originating’. The Annex to this guidance provides further detail on how to find a product’s HS code. The product-specific rules are included under Annex orig-2 (Product-specific rules of origin) of the TCA. To be considered originating and qualify for preferential tariffs, products must be sufficiently worked or processed within the parties to the agreement. By contrast, non-originating materials are materials imported from third countries. Non-originating may also refer to materials whose origin is unknown or not possible to determine. https://www.gov.uk/guidance/get-proof-of-origin-for-your-goods
Posted Fri, 26 Mar 2021 16:14:55 GMT by carol conway
You can look it up which rules apply on this page https://www.get-rules-tariffs-trade-with-uk.service.gov.uk/choose-country/ you only need to consider change in tariff rules if non originating materials are added.

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