Exporters in the UK who want to issue invoice declarations as the proof of origin of their products need to apply to be an approved exporter. To obtain this status, they need to complete and submit an application to HMRC. The application process requires:
- The Economic Operator Registration and Identification reference number – the number begins with 2 letters, followed by 12 to 15 numbers, for example GB123456789000.
- The commodity code for each of the goods you intend to export under preference.
- Estimates of quantities and values of consignments to be exported each year.
- Evidence to support your application.
Application can be made online: https://www.access.service.gov.uk/login/signin/creds
The guide hereafter describe the content for each section of the application.
Please note there is a specific application for Turkey.
Exporter’s details
Give the name of the legal entity that wishes to be the holder of the authorisation.
Address – Provide the applicant’s address
This is usually where the main records and accounts for customs purposes are kept.
Telephone number and email address
Provide daytime contact details.
Economic Operator Registration and Identification (EORI) number
Unless you’re a private individual making this application, you must hold an EORInumber. If you don’t have an EORI number don’t submit your application until you’ve obtained one. Your application can’t be accepted without one.
Find out more about EORI numbers and how to obtain them.
Single Community Authorisation
Do you intend to make preferential exports from other premises within the UK?
If yes, provide:
- names
- addresses
- contact information, for example phone number, email address
Is Single Community Authorisation required?
This would be required if you intend to make preferential exports from premises in other EU member states. If yes, provide:
- names
- addresses
- contact,information, for example phone number, email address
Detailed description of the goods to be exported under preference
Goods
Identify the goods by giving a full commercial description. For example, ’photocopiers / printers’ instead of ‘office machinery’.
Commodity Code (10 digit)
The origin rule to be applied depends on the commodity code of the product(s) to be exported. If you need help in confirming the correct classification for your intended exports, you can email an enquiry to classification.enquiries@hmrc.gsi.gov.uk.
Quantity and value of consignments to be exported each year
This doesn’t have to be precise. Estimates are acceptable.
If the individual consignment values of your intended exports under preference fall below the monetary limits for low-value invoice declarations, you don’t need to apply for Approved Exporter Status authorisation
There’s more information at sections 5, 6 and 20 of Notice 827: European Union preferences – export procedures.
Goods manufactured by a third party
If you intend to export goods that you don’t manufacture, you’ll need to get evidence of EU preferential origin from the actual manufacturer. This should be a supplier’s declaration – the layout is in Sections 14 and 15 of Notice 827: European Union preferences – export procedures.
A copy of each declaration held should be forwarded with the application, and the details of each should be summarised in the table at this section of the application form.
Depending on the origin rule for product(s) to be exported, you may need to hold evidence of EU origin for bought-in components/materials in the form of suppliers’ declarations. You may need to supply copies with your application, as appropriate at Conditions of preferential origin .
Conditions of preferential origin (goods manufactured by the exporter)
The information supplied here determines whether an approval application will be successful. Use separate sheets if required.
As well as stating the rule that applies, you must also include an explanation of how your intended exports meet it.
Step 1
Insert the actual origin rule you’re seeking to apply to the product(s) to be exported. If you’re not sure of the correct rule, refer to section 1.4 of Notice 828: tariff preferences – rules of origin for various countries. This will tell you where to find the relevant rules of origin. The rule of origin is based on the first 4 digits of the commodity code unless stated otherwise.
South Korea – Note that the rules of origin for preferential exports to this country are listed separately in Annex II of the Protocol to the EU-Republic of Korea Agreement.
Step 2
These examples set out some of the more common rules together with some guidance to explain what they mean in practice.
The examples use rules of origin for South Korea to show the how the different types of rule may be proved.
Wholly obtained
Heading 0705 (Lettuce) – Manufacture in which all the materials of Chapter 7 used are wholly obtained
This means that any exported lettuce from the EU must have been grown and harvested in the EU. This is the confirmation required under ‘Conditions of preferential origin’. Supporting documentary evidence will also be required, for example a signed statement from the grower/farmer.
Change of Tariff Heading
Heading 8601 (Rail locomotives) – Manufacture from materials of any Heading, except that of the product.
This means that the only restriction is that non-EU materials of Heading 8601 can’t be used. The Authorisations and Returns team will need confirmation of this to confirm compliance with the rule, for example a list of components showing the 4-digit commodity code to confirm that TH8601 hasn’t been used.
Process rules
Heading 5901 (Coated textile fabrics) – Manufacture from yarn.
Most textile goods have what are often referred to as ‘stage of production’ rules. In this case, it means that while the yarn can be sourced from anywhere, each stage following this (yarn to fabric / fabric to finished article) must be undertaken in the EU.
You’ll need to set out the processes undertaken in the EU from imported raw material to finished product.
Percentage rules
Heading 3824 – Manufacture from materials of any Heading except that of the product. However, materials of the same Heading as the product may be used, provided their total value doesn’t exceed 20% of the ex-works price of the product.
or
Manufacture where the value of all the materials used doesn’t exceed 50% of the ex-works price of the product (‘materials’ means non-EU materials) see Example – Product code – 8529 which shows the type of information required to confirm compliance.
Heading 3824 has 2 origin rules and only one rule has to be applied to your exported product.
For the first rule any non-EU materials used must be of a different Heading than 3824. However, there’s a built in tolerance which allows the use of non-EU materials of Heading 3824. This is subject to a maximum of 20% by way of value of the selling price of the exported product. So costings would need to be provided if materials of TH3824 were used in the manufacture, to show that their value didn’t exceed 20% of the ex-works price.
The best way to look at the 50% rule is to work out the total value of all materials. If this is less than 50%, the rule is met. However if, for example, the total material content is 52% of the ex-works price, you’ll need evidence of EU origin for the extra 2% (the first 50% being unrestricted in terms of source) – see Suppliers Declarations – Sections 14 and 15 of Notice 827: European Union preferences – export procedures.
Heading 7604 – Manufacture from materials of any Heading, except that of the product, and in which the value of all the materials used doesn’t exceed 50% of the ex-works price of the product
Any materials of Heading 7604 used must be of EU origin, and the total value of all non-EU materials used mustn’t exceed 50% of the value of the product to be exported (for example, if this is £100, then the value of non-EU materials is limited to £50).
Heading 8529 – Manufacture in which the value of all the materials used doesn’t exceed 50% of the ex-works price of the product (‘materials’ means non-EUmaterials)
The best way to look at the rule is to work out the total value of all materials. If this is less than 50%, the rule is met. However if for example the total material content is 52% of the ex-works price, then you’ll need evidence of EU origin for the extra 2% (the first 50% being unrestricted in terms of source).
For all of the above percentage rules, the Authorisations and Returns team will need a breakdown of costings to demonstrate compliance with the relevant rule. Therefore a brief costings summary confirming compliance must be submitted with the application.
Notes re Rules of Origin
- ‘Materials’ means non-originating (non-EU) materials unless otherwise specified.
- Some Headings (as with 3824) offer a choice of rules. Where this is the case, exporters can apply whichever rule they choose.
- The examples contain some suggestions about how the required information might be provided.
- Appropriate supporting documentary evidence must be included with your application so HMRC can assess your eligibility for Approved Exporter Status authorisation.
Country name
Enter the name of the country or countries you are exporting to.
Statement/certificate of origin
Indicate invoice declarations or pre-authenticated A.TR certificates (for exports of non-coal and/or steel products to Turkey only).
Previous/current authorisations
All authorisations, past and present, should be listed. This helps to show a history of compliance.
Declaration
Make sure the application is signed by a director or company secretary, or by an authorised signatory who has specific authorisation (granted by a director or company secretary) to sign on behalf of the entity.
If you’re using a paper version of the form, you must also ensure that this is an original/wet signature as copies can’t be accepted.
Examples
| Product code | 3824 |
|---|---|
| Description | Prepared binders for foundry moulds or cores: chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products) not elsewhere specified or included. |
| Origin rule | Manufacture from materials of any heading, except that of the product. However, materials of the same heading as the product may be used, provided that their total value does not exceed 20% of the ex-works price of the product. |
| Ex works price | 1,000 – This is the total of the figures of Cost of all materials + Cost of labour + Overheads + Profit. |
| Cost of all materials (originating + non-originating | 500 |
| Cost of labour | 200 |
| Overheads | 150 |
| Cost of non-EUmaterials in heading 3824 | 120 – This figure confirms the total is within the tolerance specified in the origin rule. If for example the figure was 210, then the tolerance would be exceeded and the rule not met. |
| Profit | 150 |
| Product code | 7604 |
|---|---|
| Description | Aluminium bars, rods and profiles |
| Origin rule | Manufacture from materials of any heading, except that of the product and in which the value of all the materials used doesn’t exceed 50% of the ex-works price of the product. |
| Ex works price | 2,500 – This is the total of the figures of Cost of all materials + Cost of labour + Overheads + Profits. |
| Cost of all materials (originating + non-originating | 1,500 |
| Cost of labour | 250 |
| Overheads | 250 |
| Cost of any non-EU materials | 1,200 – The value of non-EU materials is less than 50% of the ex-works price, so that the part of the rule is met. |
| Cost of EU materials in heading 7604 (evidence of EU preferential origin attached) | 200 – Any materials of 7604 used must be of EU preferential origin, so the appropriate evidence must be held (Sections 14/15 of Notice 827 refer). |
| Profit | 500 |
| Product code | 8529 |
|---|---|
| Description | Parts suitable for use solely or principally with the apparatus of headings 8525 to 8528. |
| Origin rule | Manufacture in which the value of all the materials used doesn’t exceed 50% of the ex-works price of the product. |
| Ex works price | 8,400 – This is the total of the figures of Cost of all materials + Cost of labour + Overheads + Profits. |
| Cost of all materials (originating + non-originating | 5,300 |
| Cost of labour | 500 |
| Overheads | 400 |
| Cost of non-EU materials | 4,100 – The value of non-EU materials is less than 50% of the ex-works price, so that part of the rule is met. |
| Profit | 2,200 |
Source: HMRC Guidance
For any help with Rules of Origin, forms and application send us a note: info@alegrant.com