If you’re importing or exporting goods with a country that has a preferential arrangement, the goods are likely to have a reduced or nil rate of duty based on the origin of those goods.
Unless the agreement says you do not need a proof of origin, you’ll need to:
- prove to HMRC that you can claim preference for goods you are importing
- give the person receiving your goods evidence of the origin so they can claim preference
The type of proof needed depends on the type of goods and where they’re being imported into, or exported to. You should check the preference agreement or the Generalised Scheme of Preferences to make sure you provide the right type of evidence, such as:
- EUR1 or EUR-MED movement certificate
- origin declaration
- importers knowledge
- Generalised Scheme of Preferences form A
The length of time a proof of origin will be valid for depends on the agreement and the type of proof.
You need to note your proof of origin on your declaration into free circulation (and a custom special procedure if you use one). If you use customs warehousing the subsequent release to free circulation must be within 2 years to claim preference.
If HMRC conduct a verification you will need supporting evidence that you were correct when making out a proof of origin. This evidence could be production records, invoices, accounting details and suppliers’ declarations.
EUR1 or EUR-MED movement certificate
To get a hard copy movement certificate you can contact either your local:
- Chambers of Commerce
- office of the Institute of Chartered Shipbrokers
They may charge you a fee for this service.
Due to the impact of coronavirus (COVID-19), HMRC is unable to issue original hard copy movement certificates. But during this time, you can complete the appropriate online form instead:
- movement of goods to and from Turkey – A.TR (C1232)
- claim preferential duty rates on goods exported to countries that have a preferential trading agreement with the EU – EUR1 (C1299)
- record preferential trade in goods between the UK and participating countries – EUR-MED (C1300)
Once completed, attach and send the form as an email to NCH.Movements.Digital@hmrc.gov.uk, putting in the subject line one of the following:
- ‘EUR1 endorsement’
- ‘A.TR endorsement’
- ‘EUR-MED endorsement’
You must include your company’s email address on the form.
HMRC will check and verify your application and send it back to your company’s email address within 48 hours.
If your customer cannot accept a PDF copy and no other easements are being put in place by the customs authority in the country of destination, your customer may ask you to get a retrospective movement certificate. These will only be issued on request.
Once restrictions are lifted, your customer may ask you to send an original certificate. HMRC will issue an original, by exception, however you must give evidence that the customs authority in the country of destination has specifically asked for it. You will need to email your request and evidence to: NCH.Movements.Digital@hmrc.gov.uk.
You can make an origin declaration (also known as an invoice declaration) by using a commercial document that has enough detail to identify the origin of the goods. This includes:
- an invoice
- packing list
- delivery note
If your commercial document does not have enough space to include all the information you can include it on a separate headed continuation paper. The commercial document must clearly identify this. A letter headed paper on its own is not an acceptable commercial document.
For most preference agreements, you can make out an origin declaration if the value of your consignment is below £5,700 without being an ‘approved exporter’. If the value of your consignment will be above this amount you will have to be approved.
If you’re an approved exporter, you can complete an origin declaration without a signature if you confirm in writing that you accept full responsibility for the declaration. You must have been given approval by HMRC (known as a ‘signature waiver’) to do this as part of getting approved exporter status.
If you do not have a signature waiver approval from HMRC, you must sign your origin declaration.
Any origin declaration must be presented within 2 years of your goods being imported.
For South Korea the origin declaration must be presented within 1 year from the date the declaration is issued.
In some agreements, as an importer, you can claim preference using knowledge you’ve obtained about the origin of the goods. This is known as ‘importers knowledge’. This can be used as an alternative to an origin declaration.
You will need to hold supporting documents or records which should cover:
- the commodity code
- a brief description of the production process (including the origin of the goods used)
- if the origin was based on ‘wholly obtained’ – give category for the goods
- if the origin was based on ‘sufficiently worked or processed’ give one of the following:
- the value of the product as well as the value of all the non-originating or, as appropriate to establish compliance with the value requirement, originating materials used in the production
- the weight of the product as well as the weight of the relevant non-originating or, as appropriate to establish compliance with the weight requirement, originating materials used in the product
- a list of all the non-originating materials including their commodity code (in two-, four- or six-digit format depending on the origin criteria)
- whether the goods have been altered or transformed
- if asked by HMRC, any additional information that will help verify the origin of the goods
If you or person receiving your goods cannot give this information for commercial reasons you should use an origin declaration.
Generalised Scheme of Preferences form A
is only used for goods being imported from countries covered by the Generalised Scheme of Preferences.
Supplier declarations are where your UK supplier provides you with information needed to prove the origin of your goods for preferential trade between the UK and other countries. Each consignment of goods can have a separate supplier declaration or a long-term supplier declaration can be used.
Your supplier must include their declaration on one of the following:
- the commercial invoice relating to that consignment
- a delivery note
- any other commercial documents that describes the goods enough to identify them
The supplier declaration can be provided at anytime, even after the goods have been delivered.
Long-term supplier declarations
If your supplier regularly supplies you with consignments of goods, and all of those goods are expected to have the same originating status, they may provide a single declaration covering multiple consignments of those goods (a long-term supplier declaration).
A long-term supplier declaration shall be made out for consignments dispatched during a set period of time and must state the:
- date on which the declaration is made out (date of issue)
- date of commencement of the period (start date), which may not be more than 12 months before or more than 6 months after the date of issue
- end of the period date (end date), which may not be more than 24 months after the start date
Your supplier must inform you immediately where the long-term supplier declaration is not valid for some or all consignments of goods supplied and to be supplied.
Making-out supplier declarations
The supplier declaration must be signed by your supplier. However, your invoice and supplier declaration can be electronically authenticated or your supplier can give you a written undertaking, accepting responsibility for every supplier declaration which identifies them as if they had been signed.
Check what wording you should use for: