This is very interesting and seems that the may/ shall makes a difference after all. Let me explain how this was done and what it means.
/1
/1
https://twitter.com/mafevema/status/1342913962875170823
What normally happens is that a claim for preferential origin is made at the time of import i.e. certificate demonstrating that the goods meet rules of origin is presented with the goods.
/2
/2
There are usually options to claim preferential treatment afterwords. Retrospectively. But only in special circumstances.
This is possible under domestic legislation (amending customs declarations)
/3
This is possible under domestic legislation (amending customs declarations)
/3
This can also be occasionally mentioned in the text of the FTA itself. For example here 👇 in CETA.
It's usually done in a very non-comital way. "May" as we don't want to encourage traders to get into the habit of claiming retrospectively
/4
It's usually done in a very non-comital way. "May" as we don't want to encourage traders to get into the habit of claiming retrospectively
/4
Now, look at the wording of point 2 of the UK-EU text.
Not only do we have a dedicated article on the time of making a claim, it also uses "shall".
/5
Not only do we have a dedicated article on the time of making a claim, it also uses "shall".
/5
This made me think that there might be a reason for it and that traders will be given time to collect origin documentation and claim retrospectively during the initial period.
/6
/6
Written about this option on the 13th Dec and I have to admit the thought of everyone reclaiming duty at the same time was a bit much.
However, a year... that just might be enough
/7
However, a year... that just might be enough
/7
https://twitter.com/AnnaJerzewska/status/1338107700786454528
A lot will depend on how it's done in practice:
1⃣ duty reclaim
2⃣ amending of customs declaration
3⃣ initial time-limited claim with retrospective proof
/8
1⃣ duty reclaim
2⃣ amending of customs declaration
3⃣ initial time-limited claim with retrospective proof
/8
But if done well this will provide an opportunity for companies that do not currently have the capacity and knowledge to trade under preferential tariffs to reclaim duty with nothing more than an impact on cashflow
/9
/9
So this is very good news for businesses (Other than, you know, we really should not be in a position where this kind of solution is needed cause the text is so late, but hey).
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I'm assuming all this will be in the origin guidance that I'm told is done and ready to go and which we'll probably be betting on Monday (?)🤷♀️
/end
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