Clarification statement regarding import duties

There has been much confusion and misinformation around new trade arrangements between the UK and European Union following the end of the BREXIT transition period and the initiation of a new trade deal.  At Incorez Limited, we want to assure you of our commitment to continued trade and help you with support during the change in trading conditions and administration.

Trading Duty

One topic of great concern is the mis-understanding that trading duties now apply.  This is not the case - NO DUTIES IMPORTING GOODS FROM THE UK SHOULD BE APPLIED. Under the new trade agreement, there has been some changes to documentation that is required to be completed to avoid any duty payments. Please see details of the changes below.

Trade and Cooperation Agreement (TCA) between the European Union (EU) and the United Kingdom (UK) - Background and Provisional Application

The United Kingdom (UK) left the European Union (EU) and thereby became a third country to the Union as of 1 February 2020, i.e. the so-called withdrawal date. The transition period, during which the UK remained a member of the EU internal market and the customs union, ended on 31 December 2020. On 24 December 2020, i.e. one week prior to the lapse of said period, both parties agreed on a Trade and Cooperation Agreement (TCA). The TCA is a tariff-free agreement.

United Kingdom Proofs of Preferential Origin

The Trade and Cooperation Agreement (TCA) between the European Union (EU) and the United Kingdom (UK) stipulates the proofs of origin and the corresponding rules for the determination of preferential origin. The agreement ensures no duties are payable by the importer for goods exported to and from UK and the EU.

The exporter may declare the preferential origin of goods on the commercial invoice or any other commercial document which describes the products concerned in sufficient detail to enable them to be identified.

Regardless of the value of the shipment, the statement on origin may be made out by any exporter possessing a UK Economic Operator Registration and Identification (EORI) number, which is to be indicated in the statement. The text of the statement on origin is to correspond to the stipulated wording in one of the official languages given in the agreement, as displayed in the following sample:

"The exporter of the products covered by this document (Exporter Reference No ...) declares that, except where otherwise clearly indicated, these products are of ... preferential origin."

The place, date and the name of the exporter are to be indicated in printed script. However, this statement is not to be signed by the exporter.

The proof of preferential origin is valid for twelve months from the date of issue in the exporting country and is to be submitted within said period to the customs authorities of the importing country.

The statement on origin may also be completed for multiple shipments of identical originating products within the meaning of point (b) of Article ORIG.19(4) [Statement on Origin] of the above-mentioned Agreement. In this case, the period of time for which the statement on origin will apply is to be indicated (period: from ... to ...). The period of time must not exceed twelve months.

Furthermore, instead of the exporter declaring preferential origin through the statement on origin, the importer may claim preferential treatment with the "importer's knowledge" based on the information that the product is originating.

Businesses in Great Britain

Incorez’s and all UK business REX registration have now been
cancelled. We replace our REX number with our EORI number for instances where:

  • You would have previously used your REX number
  • The UK has a continuity trade agreement that requires a REX number
  • Your exporting goods to countries covered by the UK’s Generalised Scheme of Preferences to be added into products that will be reimported under bilateral cumulation arrangements

Imported goods from the UK no longer require a REX number but instead an EORI number. REX Numbers will continue to be used between EU countries and countries with trade agreements with the EU.

We hope this helps clarify the situation with regards to understanding the duties situation post-Brexit. Please contact Incorez Limited if you require any further information - we are here to support you through this transition period.

Source of information:

www.gov.uk › ... › Exporting and doing business abroad 

www.gov.uk › guidance › application-of-the-rex-system...