When looking to claim preferential rates of duty under the trade agreement between the UK and the European Union, there are a number of rules that might apply depending on your specific commodity code. One of those rules is the change in tariff subheading (CTSH).
Under this rule, all non-originating parts used in the manufacturing of the final product must be classified under a tariff code that starts with anything other than the first six digits of your final product. For example, if your finished product is classified under 8479600000 – any non-originating materials used in the manufacturing process must not have a tariff code starting with 847960.
As part of the UK-EU TCA and the cumulation rule, “non-originating” means materials or components that are not of UK or EU preferential origin.
To evidence your claim, you must keep evidence of the origin of the material. This can be a Supplier's Declaration for your goods of UK preferential origin or the invoice from the EU supplier confirming the commodity code and that the goods are of EU preferential origin.
Need some help understanding Rules of Origin?
Our next Rules of Origin: Preferential or Non-Preferential training course will be taking place on 28th February 2024. Please see here for more information and to book.
We will cover Long-Term Suppliers Declarations and their role in our next Chambers Trade Academy free session on 29th February 2024. To register, please see here.
We can also review your processes in a Rules of Origin and Customs Audit – to discuss further, please contact the international team at exportbritain@gmchamber.co.uk