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Published:January 14, 2021

UK-EU Trade Deal

Why you can’t afford to neglect Rules of Origin requirements

UK-EU Trade Deal

Businesses that move goods between the UK and the  EU have especially welcomed the zero-tariff provision in the EU-UK deal. Uncertainty about the future tariff regime had been one of the greatest points of concern during the Brexit transition period. The trade deal stipulates that there will be zero tariffs and zero quotas on goods traded between the UK and EU countries. However, the provision is subject to meeting the Rules of Origin requirements.

 

Meeting the Rules of Origin

There are two basic ways to meet the Rules of Origin requirements. Most basically, goods need to originate entirely in either the UK or in the EU. This will often be the case with, for example, agricultural products.

However, many manufactured goods are produced from materials obtained via complex global supply chains. In such cases, the relevant goods will need to have been sufficiently remade into a new product, according to detailed specifications. 

Rules of Origin regarding manufactured goods can be complex. Different rules apply to different products. It is therefore strongly advisable to consult with an expert advisory service to ensure compliance.

 

Don’t take the grace period for granted

In order to take advantage of zero tariff trade, businesses moving goods between the UK and EU will have to submit documentation demonstrating RoO has been met.

However, there is a grace period for 2021.

However, it is reasonable to assume that compliance will be strictly enforced once the grace period concludes.  It is therefore essential to implement procedures to provide RoO documentation when it is required. Failing to do so will mean that you will not be able to claim preferential treatment on goods moved between the UK and EU.

 

Get full clarity on post-Brexit trade

Brexit has raised complex questions about moving goods between the UK and the EU. Businesses and local authorities are still carefully working through the full implications of the trade agreement. 

VAT IT is available to provide full clarity and support

VAT IT will ensure you comply with all customs requirements and help you take advantage of  preferential trade terms and prevent costly delays. 

 

 

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