Claiming origin.
Two ways for traders to claim origin under the EU-UK deal:
1⃣ Self-certification by the exporter (standard) – normally requires an authorisation, I’m hearing that might not be needed for UK-EU trade – waiting for guidance or more info
/2
2⃣ Self-certification by the importer (new(ish), in the EU-Japan deal and some continuity deals). UK importers have little experience with this one, but helpful guidance available given initial uncertainty around using this form of certification
/3
Retrospective claims.
For up to 3 years under each side’s domestic regulation – conditions, circumstances to be determined by both sides.
Careful here cause you might be required to have a good justification for why it wasn’t submitted at the time of import. Guidance needed
/4
Additional easements
On the UK side, this is part of the 6 months phase-in period– if you’re deferring a customs declaration you’re also deferring submitting an origin claim. If you're not deferring than origin documentation required at the time of import.
/5
Let’s be clear, this will be an area of risk for many companies ‼️
Advisors and customs practitioners will spend the next 6 months talking to companies about the need to meet rules of origin. Commercial risks here too.
/6
There is a question around the supplier's declaration.
Normally this is a document that you use if you're not the manufacturer of the product or if you rely on the origin of the parts and components you're using.
It's a way to track origin throughout the supply chain
/7
You normally need them before claiming originating status. Now we have a derogation, a simplification. And while that means more time for businesses and suppliers to understand what is needed - it's a massive area of risk.
/8
And I do not want to sound ungrateful - I'll take all the simplifications I can get but just not sure how this is going to play out in terms of compliance... It's hard enough to get these on time as it is...
/9
Interestingly the UK guidance covers EU side too. Which brings me to my last point - further simplifications on the EU side...? 🤷♀️
As far as I can see this is where we are for now.
/10
I keep hearing things... so this might not be over.
We still have 3.5 days left so plenty of time before all this is implemented.
/end
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Borders
When compared to no deal the deal changes very little in terms of border procedures. All formalities and checks will still be required.
Reminder - we're not starting from 0 here – both our container ports and our ro-ro ports are already congested
/2
On top of that, all the issues related to border readiness: lack of capacity and space, IT systems not ready, shortages of customs agents, treader readiness – have not been solved.
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
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
While we're all digesting the details, quick point
There are two separate questions here:
1⃣ Is this a good deal for the UK vs what we had
2⃣ Is this a good FTA
And I think we should focus on the latter
/1
We’ve known the answer to the first question for years. The economic impact of an FTA is preferable only to a no deal outcome. But we’ve also known that these were the two option on the table for a while now.
/2
While I understand the sadness of losing so much, that actually happened a while back. And if you look at the EU list of what we've lost, most of it was to be expected
Just as a reminder - without a freeze/ implementation period or some sort of derogation - no business on either side will be able to use the UK-EU FTA to avoid paying tariffs on 1 Jan even if we get one tomorrow.
It's already too late.
/1
Businesses simply won't have enough time to familiarise themselves with rules of origin, figure out whether their products meet them (larger companies have hundreds of SKUs) and understand what the certification requirements are.
/2
It is expected that companies would be able to self-certify origin under the UK-EU FTA but that is not always that straight forward and sometimes requires prior steps.
/3