Why Getting Preference Statements Correct Word by Word matters
- GMCCTradeteam
- Jun 13
- 2 min read
Updated: Jun 24
In customs compliance, it’s often the smallest details that cause the biggest problems. One issue that's tripping up many importers right now? Preference statements under Free Trade Agreements (FTAs).
There’s been a noticeable increase in post-clearance checks where importers are being asked to repay full import duty, simply because the origin statement used wasn’t an exact match to the required wording.
And yes – even if the goods genuinely qualified for preference. Even if the claim was submitted in good faith. If the statement isn’t exact, it can be disallowed.
Why This Matters:
Under FTAs such as the UK–EU Trade and Cooperation Agreement, UK–Japan CEPA and others, the origin statement must follow the precise wording set out in the agreement, literally word for word, with no additions, omissions, or alterations.
Common mistakes include:
Changing the formatting or punctuation
Including extra information (e.g. invoice numbers, contact details)
Slightly paraphrasing or abbreviating parts of the text
Using the wrong date range or agreement reference
It might seem pedantic, but customs authorities treat any deviation as non-compliance and they’re applying the rules strictly.
The Consequences:
The preference claim is rejected
Full import duty becomes payable – often after the fact
The importer is liable, not the supplier
These issues often arise months later, during audits or verification checks
Worse still, once an incorrect preference claim has been made and used on an import entry, you usually can’t go back and correct it. The opportunity is lost.
What You Can Do:
Use the official statement wording exactly as published in the relevant trade agreement – no edits.
Brief and train suppliers – especially those outside the UK – on the importance of getting it right.
Check that preference claims on your recent imports are valid and correctly documented.
Keep clear records, including supporting documents like supplier declarations or REX registrations.
Build these checks into your internal import processes – prevention is far easier (and cheaper) than correction.
Final Thoughts
Compliance isn’t just about knowing the rules, it’s about following them to the letter. And when it comes to preference statements, even a tiny deviation can cost your business dearly.
This is one of the simplest things to get right in theory and one of the costliest to overlook in practice.
Need help?
Did you know our team has more than 100 yrs of combined experience on international trade? Our expert team can help you review but also conduct origin evidence reviews to ensure your business has a strong compliance framework. Book a 30 min complimentary meeting with one of advisers today here
Additionally, did you know we run Accredited Courses focus on understanding Rules of Origin and Free Trade Agreements? Take a look at our calendar of events to check when is our next course here
Comments