Sending goods to an overseas customer using rules of origin
Check the goods you export from the UK meet the relevant rules of origin and provide proof of where the goods originate from.
Countries with a trade agreement
If the UK has an agreement with a country that you’re selling goods to, your customer may be able to pay a reduced rate of duty (known as a tariff preference or preferential rate of duty) when they import your goods.
The rules of origin are not the same in every agreement, they are different depending on the country you’re exporting to. Every time your customer wants to use a tariff preference, you must make sure your goods meet the relevant rules before you advise them that the goods originate in the UK.
If the parts or materials making up your products (or the suppliers providing or manufacturers making them) change, this can affect the country they’re treated as originating from.
Check if your customer can claim
You’ll first need to use the trade tariff tool to find the right commodity code for your goods.
Once you’ve classified your goods, you’ll need to use the trade tariff tool and follow these steps.
1. Check if your goods are covered by a trade agreement
Select or enter the country you’re exporting to. If there is a tariff preference, your goods are covered by a trade agreement.
2. Check that your goods meet the rules of origin
Select ‘rules of origin’ to check your goods meets the rules of origin. This will allow you to issue a proof of origin to your customer to claim a preferential rate of duty.
As trade agreements can change, you’ll need to make sure your goods meet the relevant rules of origin every time you issue a proof of origin. There are different rules of origin depending on the country.
Also, if the part of materials making up your products (or the suppliers providing or manufacturers making them) change, this can affect the country they are treated as originating from.
The rules you must use for developing nations are covered in the UK’s Generalised Scheme of Preference.
Read more about how to check if your goods meet the rules of origin.
3. Check what proof you need to issue
Once you’ve selected ‘rules of origin’ the tool will also tell you which of the different types of proof of origin you can issue to your customer. You must keep this as HMRC may ask you to show this to support your claim.
When you know your goods meet the rules of origin and what proof you need to issue, you can get proof of origin for your customer.
Trading with developing nations
If you are exporting materials to a country covered by the Generalised Scheme of Preference to be used in the production of goods that will be imported back to the UK, you’ll need a proof of origin that shows the materials originate in the UK.
This will help the business in the Generalised Scheme of Preference country complete the proof of origin for the goods they send back to the UK.
How to complete your export declaration
You need to declare the proof of origin on your export declaration.
There are different ways to complete the export declaration, depending on whether you’re declaring them using the Customs Handling of Import and Export Freight system or the Customs Declaration Service.
Find out how to complete your:
- Customs Handling of Import and Export Freight import declaration
- Customs Declaration Service import declaration
Keep your records
If you’ve completed a proof of origin or export declaration you must keep:
- proof of origin to show your goods can be treated as originating in the country you’re claiming a tariff preference for
- supporting documents, including details of the:
- processes carried out on originating goods or materials
- purchase, cost, value and payment for the goods
- originating status of the purchase, cost, value and payment for all materials
- a copy of the declaration
You must keep these records for at least 4 years, as HMRC may carry out checks on your goods. If you are exporting to South Korea records must be kept for at least 5 years.
Last updated 11 November 2021 + show all updates
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For countries with a trade agreement you can use the trade tariff tool to check the rule of origin and for what proof you need. For developing nations the rules are covered in the UK’s Generalised Scheme of Preference.
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First published.