The goods must then become either UK or EU origin goods, before being moved again. Therefore, it is not as simple as UK-EU area goods can move freely between the EU and the UK, as a problem presents itself for certain goods, once they have left the EU or UK. Similarly, goods imported to the UK from outside the EU, import VAT and duty paid, must also undertake some form of processing, in order to become UK origin first, if they are to then move to the EU tariff free. However, if the product is delivered to the UK for storage and redistribution only, without any kind of processing, then they will not then be classified as UK origin and duties may well be due when the product is subsequently redelivered to the EU. If the goods are UK origin and move UK to EU, or EU origin and move EU to UK, then these goods will generally be tariff free for these movements. It is worth noting that, the rules of origin under the TCA may well give rise to an issue where EU origin goods delivered to the UK, tariff free, for redistribution back to the EU, may be subject to duty on re-entering the EU. For exports to the EU, this will be their Common External Tariff and for imports, the UK Global Tariff. Goods that do not meet the rules of origin, will not be able to benefit from preference under the TCA. ![]() The rules ensure that preferential tariffs are only given to goods that originate in the UK or EU and not from third countries. The rules are set out in the TCA and determine the origin of goods based on where the products or materials used in their production come from. To benefit under the TCA, goods will have to be of UK or EU origin, meaning they must meet the UK-EU preferential rules of origin. ![]() These goods will be subject to the importer’s non-preferential tariff and payment of tariffs and duties will be due as per the UK and EU’s import requirements. ![]() The guidance is not relevant to businesses not wanting to claim preferential treatment on imported or exported goods from or to the EU. Only goods that originate in the UK or EU will be tariff free and businesses will need to claim preference on declarations, including holding proof that the goods meet the rules of origin. However, businesses should refer to the full rules of origin under the TCA, to understand all the obligations for the export or import of goods between the UK and EU and take advantage of the preferential treatment. The TCA rules of origin requirements outline the provisions in order to ensure zero tariffs apply when trading with the EU, for both exports to and imports from the EU. The following is a high level overview as the origin rules are detailed and complex, therefore, specific advice should be taken, as the circumstances for each business and the goods involved, are different. SYSTEMS ADVISORY AND DIGITAL TRANSFORMATION.
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