United Kingdom — Rules of Origin & FTAs

The United Kingdom's framework for determining the origin of goods, central to customs duties and trade agreement claims, is primarily set by the Taxation (Cross-border Trade) Act 2018 ("TCTA 2018") and secondary legislation enacted thereunder. Since 1 January 2026, material legal changes—especially affecting developing countries—have taken effect with the introduction of revised rules of origin under the Developing Countries Trading Scheme (DCTS), following amendments enacted by the Customs (Tariff and Miscellaneous Amendments) (No. 4) Regulations 2025.

## Core statutory regime and recent amendments

The foundational authority for UK origin rules remains the TCTA 2018, especially section 17 (empowering HM Treasury to prescribe origin determination rules) and related sections governing proof, implementation, and advance rulings. However, for goods originating from developing countries, updated rules under the DCTS now apply as of 2026, covering both Standard and Enhanced Preference tiers. These reforms liberalised regional cumulation (notably for African and Asian supply chains), simplified origin requirements for textiles and garments, and clarified evidence requirements for claims. The Customs (Tariff and Miscellaneous Amendments) (No. 4) Regulations 2025 amend relevant customs SIs to implement these new rules, and transition out rules in the previous Generalised System of Preferences.

The Trade and Cooperation Agreement (TCA) between the United Kingdom and the European Union, which entered into force on 1 May 2021, provides for zero tariffs and zero quotas on trade in goods that meet the agreement's rules of origin. To qualify for preferential tariff treatment under the TCA, goods must be "originating" in the UK or the EU within the meaning of Chapter 2 of Title I (Heading One, Part Two) and Annexes ORIG-1 to ORIG-7 of the agreement.

## Three routes to originating status

Goods acquire originating status under the TCA through one of three routes, set out in Article ORIG.3 (General requirements):

1. Wholly obtained — goods exclusively produced in the UK or EU without incorporating materials from any other country (Article ORIG.5). Examples include minerals extracted from UK or EU soil or seabed, live animals born and raised in the UK or EU, and plants harvested in the UK or EU. The exhaustive list of wholly obtained products is set out in Article ORIG.5(1)(a)–(m).

1. Sufficient working or processing — goods produced in the UK or EU from non-originating materials (materials from outside the UK or EU, or of unknown origin) that satisfy the product-specific rules of origin (PSRO) set out in Annex ORIG-2 to the TCA (Article ORIG.3(b) and ORIG.4). Each tariff line (at the HS 4- or 6-digit level, or sometimes 8-digit subheading) has its own rule prescribing the minimum transformation required. These rules typically take one of three forms: (i) a change in tariff classification (CTC) rule (e.g., "manufacture from materials of any heading, except that of the product"), (ii) a maximum content of non-originating materials (MaxNOM) rule expressed as a percentage of the ex-works price of the product (e.g., "manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product"), or (iii) a specific process rule describing a particular manufacturing operation. Some headings combine two or more of these tests (alternative or cumulative).

1. Cumulation — materials originating in the EU may be treated as originating in the UK (and vice versa) when incorporated into a product manufactured in the other Party, provided the working or processing goes beyond "insufficient production" (Article ORIG.4(2) and ORIG.6, discussed below). The TCA provides for full bilateral cumulation, meaning that not only can EU-originating materials count as UK-originating when further processed in the UK, but also that any processing carried out in the EU on non-originating materials can be counted toward meeting the UK's product-specific rule, as long as the final UK processing is more than insufficient (Article ORIG.6(2)).

## Product-specific rules in Annex ORIG-2

Annex ORIG-2 (titled "Product-Specific Rules of Origin") runs to several hundred pages and is organised by HS chapter (Chapters 1–97). Each entry specifies the rule applicable to a particular HS heading or subheading. For example:

• HS Chapter 61 (articles of apparel, knitted): most headings require "manufacture from yarn" (i.e., the weaving or knitting and making-up must both occur in the UK or EU, or cumulated between them).
• HS Chapter 87 (vehicles): heading 8703 (motor cars) requires compliance with a regional value content threshold and specific rules on battery origin for electric vehicles, as amended by Decision No. 1/2024 of the EU–UK Partnership Council to extend the phase-in for battery-cell local content until 31 December 2026.
• HS Chapter 84 (machinery): many headings permit "manufacture in which the value of all the materials used does not exceed X% of the ex-works price of the product," with the percentage varying by heading.

Traders must classify their goods under the correct HS code (using the UK Tariff or the EU Combined Nomenclature, which are harmonised at the 6-digit level) and then consult the corresponding rule in Annex ORIG-2. Where alternative rules are offered (separated by "or"), satisfying any one alternative is sufficient.

## Insufficient production and the anti-abuse rule

Article ORIG.7 (Insufficient production) lists operations that are deemed so minor that they do not alone confer originating status, even when performed on originating materials. The list includes simple packaging, labelling, sorting, washing, cutting, slitting, sharpening, simple painting and polishing, peeling and stoning of fruit, and simple mixing of materials (whether or not of different kinds) where one or more components do not meet the PSRO. When the only processing carried out in the UK (or EU) is insufficient, the product does not acquire UK (or EU) origin, and cumulation does not apply. This rule prevents minor finishing operations from circumventing the PSRO.

## Tolerance (de minimis) rules

Article ORIG.8 (Tolerance) provides a de minimis exception for certain product-specific rules. Where the PSRO for a product specifies a required change in tariff classification, non-originating materials that do not satisfy the change-in-tariff requirement may nevertheless be used, provided their total value does not exceed 10% of the ex-works price of the product. This tolerance does not apply to products of HS Chapters 50–63 (textiles and apparel), which are instead subject to a weight-based tolerance specified in the chapter-specific notes to Annex ORIG-2.

For PSROs that impose a maximum content threshold (MaxNOM), the tolerance is built into the percentage limit itself — there is no separate de minimis on top of the stated percentage.

## Verification and proof of origin

To claim preferential duty rates under the TCA, importers must hold proof of origin in one of two forms: (i) a statement on origin made out by the exporter (the text is prescribed in Annex ORIG-4), which may be made out by any exporter for consignments of any value, or by a "registered exporter" (under the REX system in the EU) for consignments over €6,000, or (ii) importer's knowledge — the importer's own demonstration, on the basis of information in its possession, that the goods are originating (Article ORIG.18 and ORIG.19). For imports into the UK, a statement on origin made out by an EU exporter is valid for 24 months from the date it was made out; for imports into the EU, a statement made out by a UK exporter is valid for 12 months. UK imports with a total value under £1,000 (and EU imports under €500 for non-commercial purposes or €1,000 for commercial purposes, as interpreted by some Member States) may be admitted with preference without formal proof of origin, provided the importer declares that the goods meet the origin rules (Article ORIG.22, waiver of proof of origin).

The TCA's origin rules are subject to verification by the importing Party's customs authorities (Article ORIG.24). Verification may be conducted through requests for information sent to the exporter or (in the case of importer's knowledge) the importer. If verification establishes that the goods do not originate, preferential treatment is denied and the importer must pay the standard Most Favoured Nation (MFN) duty — the UK Global Tariff for UK imports or the EU Common External Tariff for EU imports.

Source: Trade and Cooperation Agreement between the European Union and the European Atomic Energy Community, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part (Treaty Series No. 8 (2021)) Source: Introduction to rules of origin and claiming duties when trading between the UK and EU, gov.uk guidance Source: General rules to determine the origin of your products for trade between the UK and EU, gov.uk guidance

As of mid-2024, the United Kingdom has concluded 40 trade agreements with 74 countries and territories plus the European Union, with agreements in force for the majority of those partners. These range from continuity agreements rolled over from the UK's EU membership (with third countries that had EU FTAs prior to Brexit) to new post-Brexit agreements negotiated from scratch, including the UK–EU Trade and Cooperation Agreement (TCA), the UK–Australia FTA, the UK–New Zealand FTA, the UK–Japan Comprehensive Economic Partnership Agreement (CEPA), and the UK's accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). For a trade-compliance lead determining which agreement governs a particular import or export, understanding the statutory framework that implements these agreements and where to find the product-specific origin rules is the critical first step.

## Statutory implementation: SI 2020/1457 and Schedule 1

All UK preferential trade arrangements are implemented under the Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020 (SI 2020/1457), made under the authority of the Taxation (Cross-border Trade) Act 2018 (TCTA 2018). Regulation 3 of SI 2020/1457 provides that when an importer claims a preferential duty rate in a customs declaration, the rate is determined by the "Preferential Duty Tariff Table" and the "relevant origin reference document" for the applicable agreement.

Schedule 1 to SI 2020/1457 is the authoritative list of all preferential trade arrangements to which the UK is a party. Each row in Schedule 1 names the agreement (by its treaty title and signature date) and specifies two associated documents: (i) the "Preferential Tariff" reference document (listing the reduced or zero duty rates applicable to originating goods, with version number and effective date), and (ii) the "Origin Reference Document" (setting out the product-specific rules of origin, cumulation provisions, and proof-of-origin requirements, also with version and date). For example, Schedule 1 lists (as amended through mid-2024):

• Free Trade Agreement between the United Kingdom of Great Britain and Northern Ireland and Australia, signed 16 December 2021 (implemented by SI 2023/195, in force 31 May 2023);
• Free Trade Agreement between the United Kingdom of Great Britain and Northern Ireland and New Zealand, signed 28 February 2022 (implemented by SI 2023/194, in force 31 May 2023);
• Comprehensive and Progressive Agreement for Trans-Pacific Partnership, signed 8 March 2018, as applied to the UK via the Protocol on the Accession of the United Kingdom signed 16 July 2023 (implemented by SI 2024/424);
• Comprehensive Economic Partnership Agreement between the United Kingdom of Great Britain and Northern Ireland and Japan, signed 23 October 2020 (in force 1 January 2021);
• Trade and Cooperation Agreement between the European Union and the European Atomic Energy Community, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part, which entered into force 1 May 2021.

Schedule 1 is regularly amended by amending statutory instruments each time a new agreement enters into force or an existing agreement is updated. Practitioners should consult the latest consolidated version of SI 2020/1457 on legislation.gov.uk to confirm which agreements are currently in force and the titles and version numbers of the associated tariff and origin reference documents.

## Where to find origin reference documents

All Preferential Tariff Tables and Origin Reference Documents referenced in Schedule 1 are published by the Department for Business and Trade (DBT, formerly the Department for International Trade) and are available on the gov.uk collection page: Reference Documents for The Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020. Hard copies are held at DBT, Old Admiralty Building, London SW1A 2DY.

Section 32A of TCTA 2018 (inserted by section 75 of the Finance Act 2022) provides that references to origin reference documents in regulations are to the documents as modified or replaced from time to time by notice by HM Treasury. Traders must therefore consult the latest version of each document (identified by version number and effective date) on the gov.uk page, not outdated treaty text. Each Origin Reference Document contains the product-specific rules of origin (PSRO) for that agreement, typically structured by HS chapter and heading, and specifies the permitted tests (change in tariff classification, regional value content threshold, or specific process) that goods containing non-originating materials must satisfy to qualify as UK-originating under that FTA.

## Major continuity and new FTAs

The UK's continuity agreements (rolled over from pre-Brexit EU FTAs) include agreements with Switzerland and Liechtenstein, Norway and Iceland (the EEA EFTA states), Turkey, South Korea, Canada, Mexico, the Andean Countries (Colombia, Ecuador, Peru), Central America, Southern African Customs Union (SACU) and Mozambique, Eastern and Southern Africa States (ESA, including Kenya, Madagascar, Mauritius, and others), the CARIFORUM states, Ukraine, Vietnam, Singapore, Israel, Morocco, Tunisia, Egypt, Jordan, the Palestinian Authority, Chile, the Faroe Islands, and Georgia, among others. The full list is maintained in Schedule 1 to SI 2020/1457.

The UK's new post-Brexit FTAs (not derived from EU agreements) include:

• Australia (signed 16 December 2021, in force 31 May 2023);
• New Zealand (signed 28 February 2022, in force 31 May 2023);
• Japan CEPA (signed 23 October 2020, in force 1 January 2021; supersedes the EU–Japan EPA for UK–Japan trade);
• CPTPP (UK accession protocol signed 16 July 2023, implemented by SI 2024/424; CPTPP parties are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam; entry into force for the UK depends on ratification by CPTPP member states and is subject to the Protocol's entry-into-force provisions).

Traders should check the gov.uk "UK trade agreements in effect" page and the latest Schedule 1 amendments to confirm which agreements are currently in force and which are pending ratification or entry into force.

## Proof of origin and claiming preference

To claim preferential duty rates under any UK FTA, an importer must hold valid proof of origin. The form of proof varies by agreement but typically includes one of: (i) a statement on origin or declaration of origin made out by the exporter, producer, or (in some agreements) the importer; or (ii) importer's knowledge—the importer's own demonstration, based on information in its possession, that the goods are originating. Some older continuity agreements still require a EUR.1 movement certificate or origin declaration invoice statement. Each agreement specifies the proof-of-origin regime and waiver thresholds for low-value consignments in its origin chapter.

For example, the UK–Australia FTA permits a statement on origin valid for 12 months and waives proof-of-origin for UK imports with a customs value below £1,000. The CPTPP uses a certification of origin that may be completed by the exporter, producer, or importer and is valid for a minimum of one year. The TCA uses a statement on origin with validity periods and de minimis waivers specified in the agreement's origin chapter (Annex ORIG-4).

For detailed origin rules, traders should consult the relevant Origin Reference Document for the applicable agreement, available on the gov.uk reference-documents page.

Source: The UK's trade agreements, gov.uk Source: The Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020 (SI 2020/1457) Source: Taxation (Cross-border Trade) Act 2018, s. 32A (inserted by Finance Act 2022, s. 75) Source: Reference Documents for The Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020, gov.uk Source: The Customs Tariff (Preferential Trade Arrangements and Tariff Quotas) (Australia) (Amendment) Regulations 2023 (SI 2023/195) Source: The Customs Tariff (Preferential Trade Arrangements) (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) (Amendment) Regulations 2024 (SI 2024/424)

An Advance Origin Ruling (AOR) is a written decision issued by HMRC on the origin of specified goods, binding both the trader and HMRC for up to three years. Section 20 of the Taxation (Cross-border Trade) Act 2018 (TCTA 2018) authorises HMRC to establish by public notice a system under which traders may apply for advance rulings on the place of origin of goods, whether for preferential origin (for claiming FTA tariff reductions) or non-preferential origin (for country-of-origin marking, trade remedies, and government procurement). The procedural rules for applying for an AOR are published in the notices made under TCTA 2018 and in HMRC guidance on gov.uk.

## Who may apply and when

Any person who is importing into or exporting from Great Britain may apply for an AOR if they have a valid interest in the origin of the goods to be imported or exported. HMRC guidance states that an application may be made for "an actual import or export transaction where you have a valid interest in the origin of the goods." Applications must be submitted before all customs procedures have been completed — decisions cannot be made retrospectively.

Each application must cover a single type of goods; separate applications are required for each product type needing a decision. HMRC aims to issue Advance Origin Ruling decisions within 120 days from the date when the application was accepted. Applications are accepted once HMRC confirms that all necessary information has been submitted.

## Application procedure and required information

Applications are submitted by email to dutyliability.policy@hmrc.gov.uk using the AOR application form available on gov.uk. The applicant must include:

• The commodity code for the product and its ex-works price, if featured in the origin rule the applicant thinks is met
• What the applicant believes to be the country of origin for the goods and the particular rule of origin which the applicant thinks is met
• Where the applicant intends to use the ruling (i.e., in what customs declarations or transactions)

When emailing the application, the applicant must confirm willingness to receive a reply by email and accept the risks associated with electronic communication. HMRC may ask for samples in exceptional circumstances on a case-by-case basis. If samples are hazardous, the applicant must email the team first because HMRC may not accept the sample for health and safety reasons.

For applications concerning non-preferential origin, HMRC will consult the Department for Business and Trade (DBT) about the application. The guidance does not specify that DBT is consulted for preferential-origin applications.

## Binding effect and scope of the ruling

If an application is approved and a ruling is made, HMRC will issue a legal document that includes:

• The name and address of the person who holds the information (the person legally entitled to use the ruling — decisions are non-transferable)
• An explanation as to how the decision is legally justified
• The start and end dates of the ruling's validity

The ruling binds HMRC and the holder for the goods and scenario specified, for the validity period stated (up to three years from the issue date). The holder must advise the person completing customs documents that the goods have been given an Advance Origin Ruling. The guidance states this obligation but does not prescribe the form in which the AOR reference is to be declared; traders should retain the ruling and provide the reference number to customs declarants to support the origin claim in case of verification or post-clearance audit.

The binding effect is conditional: if the facts or circumstances described in the ruling change, the ruling no longer applies to the goods. The holder must apply for a new ruling if any material fact (e.g., the production process, the sourcing of materials, or the supplier) changes.

## Revocation, withdrawal, and appeals

HMRC may revoke a ruling if it was based on incorrect or incomplete information or if the legal framework changes. The applicant may withdraw an application at any time before the ruling is issued.

If the applicant does not agree with the ruling decision, or if a ruling is revoked, the applicant may either:

1. Ask for a review by HMRC (the guidance states "you can either ask for a review by HMRC or appeal directly to the tax tribunal"), or
2. Appeal directly to the tax tribunal (the First-tier Tribunal (Tax Chamber)).

The applicant does not have to ask for a review before appealing to the tribunal. If the applicant requests a review and disagrees with the outcome, appeal to the tribunal remains available. The decision letter will provide information on how to request a review.

Appeals of HMRC customs decisions under TCTA 2018 are governed by Part 5 of the Finance Act 1994, as applied by the TCTA 2018 framework, though the specific cross-reference (e.g., to section 31 TCTA 2018 or another provision mapping AOR appeals to the Finance Act 1994 regime) is not stated in the guidance or the TCTA section 20 text itself.

## Interaction with FTA proof-of-origin requirements

An AOR determines the origin of goods under UK law, but it does not replace the proof of origin required to claim preferential tariff treatment when importing goods under an FTA. When importing goods covered by an AOR into the UK under a free trade agreement (such as the UK–EU TCA, the UK–Japan CEPA, or CPTPP), the importer must still hold valid proof of origin in the form prescribed by the agreement — typically a statement on origin made out by the exporter, a certification of origin, or (where permitted by the agreement) importer's knowledge.

The AOR provides strong supporting evidence for the origin claim, particularly when the importer uses importer's knowledge as the proof mechanism. When exporting goods from the UK for which the buyer will claim preferential treatment in the destination country, a UK AOR can underpin the exporter's statement on origin or origin certification, though foreign customs authorities are not legally bound by a UK ruling.

For non-preferential origin purposes — such as country-of-origin marking, or the application of UK trade-remedy duties (anti-dumping or safeguard measures) — the AOR directly determines the treatment of the goods, and no separate proof-of-origin formality is required beyond holding the ruling.

Source: Taxation (Cross-border Trade) Act 2018, s. 20 Source: Apply for an Advance Origin Ruling, gov.uk guidance Source: Notices made under the Taxation (Cross-border Trade) Act 2018, gov.uk

A supplier's declaration is a written statement by which a UK or EU supplier provides information to a UK or EU producer or exporter about the originating status of goods or materials being supplied, enabling the producer or exporter to determine whether a finished product qualifies as UK- or EU-originating under the Trade and Cooperation Agreement (TCA). Supplier's declarations are critical for supply chains that rely on bilateral cumulation — the ability to count EU-originating materials as UK-originating (and vice versa) or to count processing carried out in the other Party on non-originating materials toward meeting a product-specific rule of origin.

## When a supplier's declaration is required

A UK exporter making out a statement on origin for a product must hold information demonstrating that the product is originating, including information on the originating status of materials used in production (Article ORIG.18 (now Article 54) of the TCA). A supplier's declaration is required in two scenarios:

1. Cumulation of originating materials — Where a UK manufacturer incorporates EU-originating materials into a product and wishes to treat those materials as UK-originating for purposes of meeting the product-specific rule in Annex ORIG-2, the manufacturer must obtain from the EU supplier either (i) a statement on origin (if the supplier is exporting the materials to the UK and the materials themselves will cross the border), or (ii) a supplier's declaration for originating products confirming that the materials originate in the EU under the TCA rules (Article ORIG.4(1) and ORIG.18).

1. Full bilateral cumulation of processing on non-originating materials — Where a UK manufacturer uses materials that are non-originating (i.e., from outside the UK and EU) but have undergone processing in the EU, and the UK manufacturer wishes to count that EU processing toward meeting the UK product-specific rule, the manufacturer must obtain a supplier's declaration for non-originating products from the EU supplier. This declaration evidences the working or processing carried out in the EU on the non-originating materials (Article ORIG.4(4) (renumbered as Article 40(4) in the consolidated TCA text) and Annex ORIG-3 (Annex 6 in the consolidated text)).

The TCA provides that the supplier's declaration "may be replaced by an equivalent document that contains the same information describing the non-originating materials concerned in sufficient detail to enable them to be identified" (Article ORIG.4(4)). In practice, suppliers use the prescribed template in Annex 6 or an invoice statement with equivalent content.

A supplier's declaration is not required when:

• The finished product is wholly obtained in the UK (Article ORIG.5) — for example, live animals born and raised in the UK, plants harvested in the UK, minerals extracted from UK soil or territorial waters.
• The product is manufactured entirely from UK-originating materials with no EU cumulation.
• The value of non-originating materials falls within the tolerance (de minimis) threshold (10% of ex-works price for most products, or weight-based tolerance for textiles in HS Chapters 50–63) and the manufacturer does not rely on cumulation of EU processing (Article ORIG.8).

## Two types of supplier's declaration under the TCA

The TCA prescribes two distinct forms of supplier's declaration in Annex 6 (Supplier's declaration), which is referenced by Article 40 (formerly Article ORIG.4):

(A) Supplier's declaration for **originating products**

Used when the supplier is declaring that the goods supplied originate in the EU (or UK) and satisfy the TCA rules of origin. The prescribed wording (from Annex 6, Section 1) is:

> I, the undersigned, supplier of the goods covered by the annexed document, which are regularly supplied to ………. (name and address of customer), declare that: > the goods described as ………. which are regularly supplied to ………. (name and address), originate in ………. (UK or EU) and satisfy the rules of origin governing preferential trade with ………. (UK or EU).

This declaration may cover either a single supply (for one consignment) or regular supplies over a specified period (a long-term supplier's declaration). A long-term declaration is valid for all shipments of the described goods dispatched within the period stated in the declaration, which may be up to two years. The supplier must notify the customer immediately if the declaration ceases to be valid.

(B) Supplier's declaration for **non-originating products with processing in the UK or EU**

Used when the supplier is declaring that non-originating materials have undergone working or processing in the UK or EU, and the customer (the manufacturer or exporter) intends to count that processing toward meeting a product-specific rule under full bilateral cumulation. The prescribed wording (from Annex 6, Section 2) is:

> I, the undersigned, supplier of the goods covered by the annexed document, which are regularly sent to ………. (name and address of customer), declare that: > (1) the following materials which do not have a preferential originating status have been used in the UK or EU to produce these goods: [description of non-originating materials] > (2) All the other materials used in the UK or EU to produce these goods originate in ………. (UK or EU) and satisfy the rules of origin governing preferential trade with ………. (UK or EU), and: > (3) [specify processing/production carried out in UK or EU].

This form evidences the value added or transformation that occurred in the supplier's territory, which the customer can then aggregate with its own UK (or EU) processing to demonstrate that the combined operations satisfy the product-specific rule in Annex ORIG-2.

Both forms must include the supplier's undertaking to inform the customer immediately if the declaration is no longer valid and to make available to customs authorities any further supporting documents they require.

## Single-supply vs. long-term declarations

A supplier's declaration may be made out:

• For a single supply — covering goods described in one invoice or delivery, or
• For regular supplies over a period (a long-term supplier's declaration) — valid for all shipments of identical goods dispatched from a specified start date to a specified end date, not exceeding two years (Article 40 does not prescribe a maximum period, but HMRC guidance and EU practice set two years as the standard maximum; DBT guidance and the Annex 6 template refer to "regular supplies" without a strict cap, but Member State practice under the UCC typically limits long-term declarations to two years, and UK practice mirrors this).

Long-term declarations reduce administrative burden for stable supply relationships. The supplier must update or withdraw the declaration if the originating status of the goods changes — for example, if the supplier changes its source of raw materials or its production process.

## Easement period (expired) and current requirements

From 1 January 2021 to 31 December 2021, the UK and EU both applied a temporary easement: businesses claiming preferential treatment under the TCA on the basis of a statement on origin or importer's knowledge were not required to hold supplier's declarations at the time the goods were exported or imported, provided they were confident the goods met the origin rules. Customs authorities could request supplier's declarations retrospectively during that period (HMRC Notice, gov.uk guidance published January 2021).

As of 1 January 2022, the easement expired. UK exporters making out a statement on origin must now hold the supplier's declaration (when needed) at the time the statement on origin is issued. If the exporter does not hold a supplier's declaration or other evidence of originating status for goods exported during the easement period (1 January 2021 – 31 December 2021), and the exporter issued a statement on origin during that period, the exporter has an obligation to inform the customer (the importer). If the exporter is subject to a verification request by HMRC or an EU Member State customs authority and cannot provide evidence that the goods originated in the UK, the EU customer will be liable to pay the full Most Favoured Nation (MFN) duty — the EU Common External Tariff — and the UK exporter may face penalties for issuing an incorrect statement on origin.

## Record-keeping and verification

Suppliers making out supplier's declarations must retain supporting documents for a minimum of four years from the date the declaration was made (Article ORIG.22 (Article 59 in consolidated text), which cross-refers to the exporter's record-keeping obligation; HMRC guidance states that the supplier must keep records for four years). Supporting documents may include purchase invoices, production records, tariff-classification evidence, and (for cumulation) statements on origin or supplier's declarations received from the supplier's own suppliers.

UK and EU customs authorities may verify the accuracy of a supplier's declaration as part of a verification of a statement on origin. HMRC may request information directly from the supplier (if UK-based) or, for EU suppliers, through administrative cooperation with the EU Member State customs authority under the TCA's customs-cooperation chapter (Part Two, Heading Three).

## Supplier's declarations between UK suppliers (intra-UK supply chains)

For goods moving within purely domestic UK supply chains (where no EU cumulation is involved), supplier's declarations are not governed by the TCA. However, when a UK exporter will ultimately export the finished product to the EU under a TCA statement on origin, the exporter must hold evidence of the UK origin of materials sourced from UK suppliers. HMRC guidance states that UK suppliers may use a supplier's declaration using wording similar to the TCA Annex 6 template to provide this evidence, substituting "UK" in both the origin and destination fields. Alternatively, the exporter may rely on purchase orders, production records, or other commercial documentation demonstrating that the materials meet the UK content or processing requirements. The key requirement is that the exporter must be able to demonstrate to HMRC, if requested, that the materials contributed to meeting the product-specific rule.

HMRC does not prescribe a mandatory form for intra-UK supplier's declarations, but using the TCA Annex 6 template adapted for UK-to-UK supply ensures consistency and facilitates verification. UK suppliers providing materials for export-destined products should retain records for four years to support verification by HMRC.

## Interaction with importer's knowledge

When an importer claims preferential treatment on the basis of importer's knowledge (rather than a statement on origin made out by the exporter), the importer must hold information demonstrating that the goods are originating. For goods that rely on cumulation or incorporation of supplier-sourced materials, the importer will typically need to obtain from the exporter (or directly from the supplier, in integrated supply chains) the same supplier's declarations that the exporter would have held to make out a statement on origin. The importer's record-keeping obligation is three years (Article 59(1)), one year shorter than the exporter's four-year obligation.

In practice, an EU importer using importer's knowledge for UK goods may request from the UK exporter or UK supplier a statement or declaration evidencing the origin of materials and the processing carried out in the UK, even though the exporter is not issuing a formal statement on origin. The TCA does not prohibit this arrangement; importer's knowledge shifts the compliance burden to the importer but does not eliminate the need for supply-chain transparency.

Source: Trade and Cooperation Agreement between the European Union and the European Atomic Energy Community, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part, Article 40 (ex ORIG.4) and Annex 6 (ex ORIG-3: Supplier's declaration) Source: Using a suppliers' declaration to support a proof of origin, gov.uk guidance Source: Proving originating status and claiming a reduced rate of Customs Duty for trade between the UK and EU, gov.uk guidance

To secure preferential tariff treatment under a United Kingdom free trade agreement (FTA), the importer must comply with origin proof requirements set by both the relevant FTA and the implementing UK regulations, primarily the Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020 (SI 2020/1457). The type of proof required, the documentary form, and record-keeping duties vary by agreement, but core mechanisms are consistent across most FTAs in force as of 2025.

1. Statement on origin (self-certification):

• For the UK–EU Trade and Cooperation Agreement (TCA), UK–Japan CEPA, UK–Australia, UK–New Zealand FTAs, and CPTPP, importers can claim preference using a "statement on origin" made out by the exporter (or, for CPTPP, exporter/producer/importer). The statement text must follow the form set in the agreement’s annex, and reference the relevant shipment and exporter’s details. Usually, there is no threshold for value—any exporter can make out the statement, but some FTAs require registration for larger consignments (e.g., EUR 6,000+ under TCA, requiring EU REX registration for EU exporters; no registration required for UK exporters). Statements on origin may be provided on an invoice or commercial document and must accompany the goods or be held by the importer at the time of claim.

2. Importer's knowledge:

• As an alternative in the TCA and many FTAs, importers may rely on their own “importer’s knowledge” to claim preference—demonstrating, with supporting documents, that the goods meet origin rules. This is riskier: UK importers must retain information sufficient for HMRC to verify origin, including supplier documentation, manufacturing records, and tariff classification evidence. Importer’s knowledge must be held at the time the claim is made and presented upon HMRC request.

3. EUR.1 movement certificate:

• Some legacy and continuity FTAs (e.g., South Korea, Andean countries, Eastern and Southern Africa) still allow or require a customs-certified EUR.1 movement certificate as proof of origin. The EUR.1 is issued by the customs authority on application by the exporter and accompanies the shipment; details and specimen are in the relevant Origin Reference Document for each agreement.

4. Waivers and low-value consignments:

• Nearly all UK FTAs allow waiver of formal proof for low-value shipments (e.g., under £1,000 for the UK–Australia Agreement, under €500 for non-commercial EU consignments, etc.), provided the importer makes a simplified declaration attesting to meeting the origin rules.

5. Recordkeeping requirements:

• FTAs require exporters making out a statement on origin, or suppliers providing declarations, to keep supporting documentation for at least four years from the date of issuance (TCA Art. 59, mirrored in UK FTA practice and referenced by SI 2020/1457 and relevant origin reference documents). Importers must retain relevant documents for three years. Records may include statements on origin, supplier’s declarations, invoices, manufacturing records, and purchase orders evidencing the origin of materials and processing.

Failure to hold valid proof or adequate records at the time of customs declaration may result in denial of preference, recovery of the MFN duty, and possible penalties.

Source: SI 2020/1457, as amended, Regulations 3 and 4; reference documents for UK FTAs; TCA Articles ORIG.18–22, 59 Source: UK government collection: reference documents for the Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020 Source: TCA full text, Articles ORIG.18–22, Annex ORIG-4, Annex 6

Under the UK–EU Trade and Cooperation Agreement (TCA), certain minimal operations performed in the United Kingdom (or the European Union) do not confer originating status on goods—even where product-specific rules of origin might otherwise be satisfied. Article ORIG.7 of the TCA (now Article 44 in the renumbered text) codifies the principle of “insufficient working or processing.” This anti-circumvention rule prevents minor or cosmetic operations from qualifying goods for tariff preferences.

Key provisions of TCA Article ORIG.7 (Insufficient Production):

• The TCA provides an exhaustive list of processes considered "insufficient" to confer origin. Goods undergoing only these operations are not "originating" for preference purposes, even if other origin criteria seem to be met.
• The list includes, but is not limited to:
• Simple packaging, cleaning, or washing operations
• Sorting and marking or labelling
• Simple painting and polishing
• Mere dilution or mixing that does not result in a new product
• Simple assembling of parts to form a complete article
• Slaughter of animals
• Peeling, stoning, or grinding

Each operation is described specifically in Article ORIG.7(1)(a)-(o) of the TCA. In practice, this means that, for example, grinding coffee beans in the UK from imported green beans does not confer UK origin; nor does simply packaging third-country electronics in retail boxes.

Practical examples for UK traders:

• Re-labelling imported clothing in the UK to add a UK distributor’s details does not make the garments UK-originating.
• Simple assembly—like screwing together imported components to make furniture—does not meet origin. More complex manufacture, where new features or functionality are created, must be assessed against the product-specific rule.
• Blending imported chemicals without resulting in a new chemical substance is “simple mixing” and does not confer origin.

Interaction with cumulation and product-specific rules:

• The insufficient processing rule operates alongside the product-specific rule (Annex ORIG-2) and applies even where cumulation with EU-originating materials is claimed. If processing in the UK is limited to insufficient operations, those goods cannot be claimed as originating—regardless of the origin of input materials.
• For complex supply chains, all working or processing carried out in the UK (and, under cumulation, in the EU) is aggregated, but the final UK processing step must go beyond insufficient production.

Verification and fallout:

• HMRC and EU customs may deny preference where the only processing performed is on the insufficient list, and the trader cannot evidence more substantial transformation. Documentary audit trails (manufacturing records, processing logs) are often requested.

For the definitive list and legal text, see Article ORIG.7 and the relevant guidance on gov.uk. UK practice generally mirrors EU interpretation post-Brexit, but compliance responsibility rests with the trader at the time of declaration.

Source: Trade and Cooperation Agreement, Article ORIG.7 (Insufficient Production) Source: General rules to determine the origin of your products for trade between the UK and EU, gov.uk guidance

HM Revenue & Customs (HMRC) verifies origin claims and conducts post-import audits to ensure that goods entered with preferential duty rates under UK Free Trade Agreements (FTAs) or autonomous preferences meet the relevant origin requirements. The framework for such verification is established by the Taxation (Cross-border Trade) Act 2018 and the Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020 (SI 2020/1457), in addition to the specific origin verification protocols in each FTA (such as Articles ORIG.23 and ORIG.24 of the UK–EU Trade and Cooperation Agreement).

Verification Triggers

• HMRC may initiate verification based on several factors, including requests from customs authorities in partner countries (as provided in relevant FTAs), information suggesting inaccurate or fraudulent claims, and review of documentation submitted with the origin declaration. While HMRC can review any preference claim, the precise mechanisms—such as risk profiling or random audit—are governed by HMRC internal policy and are not spelled out in SI 2020/1457.

Verification Process

1. Document request: HMRC may issue a written notice after import, requiring the importer to provide origin proof and supporting records per the relevant FTA or statutory requirement. Under SI 2020/1457 regulation 7, HMRC specifies a time period for response within the notice itself; in practice, 30 days is commonly allowed, but the period is at HMRC's discretion.
2. Review/evaluation: HMRC reviews the supplied evidence, including statements on origin, supplier’s declarations, invoices, production records, and other supply-chain documents. Under the TCA, for UK–EU trade, HMRC may also seek information via administrative cooperation with EU customs authorities per Articles ORIG.23–24.
3. Outcome: If the importer substantiates origin, preference is upheld. If not, HMRC denies the claim, assesses duties at the standard Most Favoured Nation (MFN) rate, and may pursue penalties if inaccuracy or negligence is involved.

Recordkeeping and Legal Duties

• Importers must hold origin proof at the time of import and retain it for at least three years (SI 2020/1457, reg. 4; TCA Annex ORIG-6 for TCA claims). Exporters and suppliers are typically required to retain supporting records for four years (per FTA protocols such as TCA Annex ORIG-6). For non-TCA FTAs, practitioners should check the specific origin reference document for applicable periods.

Penalties and Appeals

• Where the origin claim is not substantiated, preference is denied and standard MFN duties assessed retroactively.
• Civil penalties for compliance failures are available under the Customs (Contravention of a Relevant Rule) Regulations 2003 (SI 2003/3113); criminal penalties apply to fraudulent claims under the Customs and Excise Management Act 1979.
• Importers may seek administrative review or appeal against HMRC decisions under TCTA 2018 and the Finance Act 1994.

Robust recordkeeping and clear documentation tracing the supply chain are stressed in HMRC guidance as essential for surviving origin audits—failure to provide evidence on request is sufficient reason for denial of preference. For the current audit guidelines and recordkeeping instructions, consult HMRC’s official regulations and the origin reference documents for the relevant FTA.

Source: SI 2020/1457, regs. 3, 4, 7 Source: Trade and Cooperation Agreement, Articles ORIG.23–24, Annex ORIG-6

Cumulation in rules of origin lets manufacturing steps or materials from designated partner countries count as if they were domestic when qualifying for preferential tariff rates. The UK applies several types of cumulation across its FTAs, with each agreement specifying the permitted model.

1. Bilateral Cumulation — Standard in Modern UK FTAs Most current UK FTAs, including the UK–EU Trade and Cooperation Agreement (TCA) and UK–Japan CEPA, use bilateral cumulation. Here, processing or originating materials from either FTA party count as domestic, provided that all processing steps exceed the "insufficient operations" listed in Article 44 (ex-ORIG.7) TCA. For example, if a UK car manufacturer uses EU-origin steel that meets TCA requirements and conducts more than minimal UK processing, the entire value can be considered UK-origin for tariff purposes. The legal basis is TCA Art. ORIG.4/Article 40, and for UK–Japan, Chapter 3, Article 3.4 and Annex 3–A.

2. Diagonal Cumulation — Limited, by FTA and Notification Certain continuity FTAs rolled over from the UK's EU membership provide for diagonal cumulation, but only if identical origin rules exist across all relevant parties and official notifications are exchanged. Examples include the UK–Switzerland FTA (Protocol 3, Article 3), which allows diagonal cumulation with EU and EEA/EFTA states, and the UK–Turkey FTA (Protocol 2, Article 3). However, critical FTAs like the UK–EU TCA do not permit diagonal cumulation with common partners (e.g., you cannot cumulate Turkish origin through the UK–EU FTA for UK–EU trade). Each FTA's Origin Reference Document, referenced in SI 2020/1457 Schedule 1, sets the permitted partners and conditions. Always check recent Protocol amendments and the relevant Origin Reference Document to confirm applicability.

3. Full Cumulation — Generally Not Permitted Full cumulation would allow any qualifying processing—regardless of where it occurs among partner countries—to be aggregated toward conferring origin, even on non-originating materials. As of June 2025, no UK FTA implements full cumulation across all parties (confirmable from Origin Reference Documents and SI 2020/1457 Schedule 1). Some limited forms may apply to specific sectors or product types, but these are exceptions, not the standard. If the FTA or schedule is silent or ambiguous, full cumulation should not be presumed.

4. Documentation The business claiming cumulation must retain supplier’s declarations or origin evidence (TCA, Annex 6, Article 61; UK–Switzerland FTA Protocol 3, Art. 28) for at least four years for exporters and three years for importers. HMRC or partner customs can audit compliance during this period.

Key Practice Points:

• Pinpoint the cumulation model in the relevant Origin Reference Document on gov.uk or the cited FTA protocol, not just summaries.
• For diagonal cumulation, verify formal notifications are in force. Lack of notification means cumulation cannot be claimed.
• Document retention is not optional—lack of compliance exposes traders to duty recovery and penalties.

Source: UK–EU Trade and Cooperation Agreement, Article ORIG.4/40, Annex 6; UK–Japan CEPA, Chapter 3, Article 3.4, Annex 3-A; UK–Switzerland FTA, Protocol 3, Article 3; SI 2020/1457, Schedule 1 Source: Reference Documents for The Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020, gov.uk (FTA schedules and protocols) Source: UK–EU TCA full text Source: UK–Japan Comprehensive Economic Partnership Agreement documents, gov.uk Source: Continuing the United Kingdom’s Trade Relationship with the Swiss Confederation, gov.uk (PDF)

The United Kingdom determines non-preferential origin for goods that are not claiming FTA-based tariff preferences according to the Taxation (Cross-border Trade) Act 2018 (TCTA 2018) and the Customs (Origin of Chargeable Goods) (EU Exit) Regulations 2020 (SI 2020/1433), in force since 1 January 2021. These rules impact country-of-origin marking, application of trade remedies (anti-dumping, safeguards), government procurement, and customs statistics—distinct from the product-specific rules of FTA origin.

Core legal tests

1. Wholly obtained: Goods are considered to originate in a country if they are entirely produced or obtained there, with no materials from elsewhere. SI 2020/1433, reg. 4 and Schedule 1, list qualifying categories, including:

• Minerals from the soil or seabed of the country
• Live animals born and raised there
• Plants harvested, or goods made from these wholly obtained items in that country
• Waste and scrap from manufacturing and used articles

1. Substantial transformation (multi-country production): If two or more countries are involved, origin is conferred by the country where the last substantial transformation—“economically justified” and resulting in a new product or representing an important stage of manufacture—occurs, per s. 17(3)-(4) TCTA 2018 and reg. 5, SI 2020/1433. This is sometimes called the "change in tariff heading" (CTH) or "essential character" test, but the regulation provides for both and for special rules (e.g., textile processing, chemical reactions) in the reference document incorporated under reg. 7.

Practical examples

HMRC’s current Reference Document (v1.2, 12 April 2023) clarifies application with product examples:

• Coffee beans imported, roasted in the UK: Roasting is treated as substantial transformation—origin is the UK.
• Apparel manufactured in UK from non-UK fabric: Cutting and sewing into garments is substantial transformation; origin is the UK.
• Blending spices in the UK: Simple mixing does not confer UK origin if it does not create a new product.

Trade remedies and marking

Non-preferential origin controls whether anti-dumping, countervailing, or safeguard duties apply and what country-of-origin marking is required. For example, if imported steel is only cut to length in the UK, but not otherwise processed, the country of origin for trade remedies remains the source country.

Proof and advance rulings

Importers are responsible for evidencing non-preferential origin; HMRC may review customs declarations and supporting documents post-entry (SI 2020/1433, reg. 8). Advance Origin Rulings under s. 20 TCTA 2018 are available for non-preferential origin.

For detailed rules and category appendix, see SI 2020/1433 and the current HMRC Reference Document (v1.2, Apr 2023, incorporated by reg. 7).

Source: The Customs (Origin of Chargeable Goods) (EU Exit) Regulations 2020 (SI 2020/1433) Source: Taxation (Cross-border Trade) Act 2018, s. 17

When goods are imported into the United Kingdom under a Free Trade Agreement (FTA) and then re-exported to another FTA partner—whether after warehousing, splitting consignments, or simple redistribution—the ability to retain and evidence preferential origin is governed by both UK law and the individual FTA’s origin chapter. The core legal principle is the "non-manipulation" or "no alteration" rule, requiring that goods do not undergo any operation in the UK other than transport, storage, splitting consignments, or actions to preserve condition. This is codified for the UK–EU Trade and Cooperation Agreement (TCA) at Articles ORIG.15 and ORIG.16, and implemented through the Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020 (SI 2020/1457).

Key elements for UK practice under the TCA:

• Preferential origin is maintained only if goods remain under customs supervision and are not altered beyond permitted operations while in the UK. Article ORIG.15(1) expressly states that any processing other than permitted actions breaks the origin chain.
• The re-exporter must be able to demonstrate (typically via customs warehousing, inventory records, or transit documentation) that the goods were not further processed.
• If the goods are split, repacked, or relabelled in the UK, the declarant must provide proof that such actions did not amount to further manufacturing or processing (TCA Article ORIG.15-16).

Evidence and documentation:

• For re-export to the EU under the TCA, the UK exporter can make out a new statement on origin if able to demonstrate that the product qualifies as originating, using the supply chain documentation from the original import.
• HMRC or the customs authority of the destination FTA partner may require the retention and production of original proof of origin (e.g., supplier declarations, commercial documents accompanying the initial import). SI 2020/1457 and the TCA require relevant records to be kept for up to four years.

Limitations and variation by FTA:

• The above description is directly grounded on the TCA text. Other UK FTAs (such as those with Japan, Australia, or CPTPP partners) may contain similar non-manipulation requirements, but practitioners must check the origin chapters or UK’s published Origin Reference Documents for the applicable FTA to confirm the precise rule. Not all partners will accept UK back-to-back statements or treat UK handling in the same way as the TCA.
• Where an FTA is silent, UK authorities look to the implementing regulations and FTA guidance. If no explicit provision is found in the agreement or regulations, the treatment of trans-shipment or re-export should not be presumed.

In sum: For UK re-export operations aiming to retain FTA preferential origin, ensure meticulous recordkeeping, adhere to the “no alteration” principle, and verify that both UK law and the destination FTA permit the relevant back-to-back origin documentation. The TCA forms the clearest template, with possible divergence under other FTAs.

Source: The Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020 (SI 2020/1457) Source: UK–EU Trade and Cooperation Agreement, Articles ORIG.15–16 Source: Reference Documents for UK FTAs (Gov.uk)

Several UK Free Trade Agreements (FTAs)—notably the UK–Australia FTA and the UK–New Zealand FTA—require that goods meet a minimum Regional Value Content (RVC) threshold as a condition for preferential origin. RVC is designed to ensure that a significant proportion of a product’s value was added within the UK or FTA partner, rather than in third countries. This section details the calculation methods and compliance requirements as set out in the primary treaty text for these agreements.

Calculation Methods in UK–Australia and UK–New Zealand FTAs

Both the UK–Australia FTA (Chapter 4, Article 4.4) and the UK–New Zealand FTA (Chapter 3, Article 3.4) allow two main formulas for establishing RVC:

• Build-down method (the deductive method):

RVC (%) = ([Value of the good] – [Value of non-originating materials]) / [Value of the good] × 100 This is the default method and can be applied for most goods.

• Build-up method (the additive method):

RVC (%) = [Value of originating materials] / [Value of the good] × 100 This method is also permissible unless a Product Specific Rule (PSR) for a given tariff line expressly limits the method.

The “value of the good” is defined as the Free on Board (FOB) value for UK–Australia and UK–New Zealand FTAs—meaning the price paid by the buyer for the goods when loaded for export (excluding international freight and insurance). The “value of non-originating materials” is the customs or acquisition value, as defined in the FTA’s provisions.

Note: Not all UK FTAs or all product types allow both methods. The applicable PSR (found in the relevant agreement’s origin schedules) specifies the RVC threshold (commonly 40% or 45% under these agreements) as well as any mandatory calculation method. Practitioners must review the relevant agreement and tariff heading before applying a method.

Example (UK–Australia FTA): A product exported from the UK to Australia has an FOB value of £1,000. It consists of non-originating components valued at £600. The RVC is therefore calculated as: (1,000 – 600) / 1,000 × 100 = 40%. If the PSR for the HS heading requires a 40% minimum RVC, the good qualifies as originating under the build-down method for UK–Australia trade.

Compliance Practice: The exporter must retain calculation evidence (invoices, bills of materials, supplier origin declarations) for at least 4 years (see the compliance provisions in the cited chapters). Falsification or misrepresentation can result in denial of preference and retrospective duty assessment by HMRC or partner customs.

Important: FTAs may define “value of the good” differently (e.g., “ex-works” for some EU agreements); methods and thresholds are FTA- and product-specific. Always confirm current rules in the agreement and PSR.

Source: UK-Australia FTA, Chapter 4, Article 4.4 Source: UK–New Zealand FTA, Chapter 3, Article 3.4

The United Kingdom's post-Brexit free trade agreements include a set of "continuity" or "rollover" deals that replaced the EU's FTAs for UK trade with non-EU partners. A critical compliance issue is the treatment of goods containing EU content or subject to processing in the EU before the end of the transition period (31 December 2020), as well as the ability to claim UK origin on stock/inventory held in the UK or partner countries at that date.

Legal Framework and Key Transitional Clauses Under the Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020 (SI 2020/1457), these continuity agreements usually contain treaty-specific annexes or provisions detailing how—if at all—inputs or materials processed in the EU prior to Brexit may count as UK originating under the new UK FTA. Schedule 1 to SI 2020/1457 references each agreement's "Origin Reference Document," where these rules are set out alongside product-specific rules and any relevant transitional arrangements.

Crediting EU Processing/Materials Pre-Brexit For most continuity FTAs (e.g., with Switzerland, Norway/Iceland, Korea, etc.), the agreement or the incorporated UK government notice provides transitional arrangements for goods/materials that:

• Were shipped, in transit, or in temporary storage at 11:00 PM GMT on 31 December 2020, and/or
• Incorporate EU-processed components that were acquired or substantially transformed in the EU or UK before this date.

Generally, such goods may qualify as UK (or partner) originating—if all other origin and evidence criteria are met—so long as any additional requirements in the agreement (such as proof of movement and record retention) are satisfied. For example, the UK-Switzerland FTA Protocol 3 Article 1A enables goods or materials originating in the EU, UK, Switzerland, or another common partner before the end of the transition period to be treated as originating when used in UK-Swiss trade until stocks acquired before that date are exhausted, subject to evidence requirements.

Material Update – Expiry of EU Cumulation for UK–Canada As of 1 April 2024, the ability to count EU-originating materials and processing under transitional origin/cumulation provisions in the UK–Canada Trade Continuity Agreement (TCA) has expired. The EU cumulation clause and associated quota provided for under the agreement are no longer available for exports from the UK to Canada as of this date. Goods exported to Canada must now fully satisfy UK origin criteria without reference to EU inputs acquired before the end of the Brexit transition period. This does not affect the operation of transitional or EU cumulation clauses in other FTAs unless and until their expiry is separately announced. Importers and exporters must check the latest notices and agreement-specific guidance.

Stock on Hand / Inventory Provisions Many of these FTAs allow preferential treatment for goods already in storage in the UK or the partner country at the end of transition, provided proof shows they were either in transit or customs-bonded at the critical time. A longstop date or "until stocks are exhausted" clause is typical; verification and recordkeeping obligations apply. SI 2020/1457 does not prescribe a uniform end date—each agreement’s reference document gives specifics.

Proof and Documentary Requirements Importers and exporters must hold documentation such as import entries, inventory records, and supplier invoices showing the date of acquisition, processing history, and movement dates. If origin is claimed based on transitional provisions, the burden of proof is strict and subject to post-clearance verification by HMRC or the partner authority.

Check Current Guidance The transitional regime’s details may change as agreements are updated. Practitioners must consult the current Origin Reference Document linked in Schedule 1 SI 2020/1457 and related government notices (reference-documents page).

Source: SI 2020/1457, Sched 1; FTA origin reference documents; e.g., UK-Switzerland FTA Protocol 3 Art. 1A; UK Collection: reference documents for the Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020 Source: Notice to traders 2024: Update on use of EU cumulation clause and origin quotas in trade with Canada, gov.uk

When HM Revenue & Customs (HMRC) finds that goods do not qualify as originating under a UK Free Trade Agreement (FTA)—after post-import audit or origin verification—importers and exporters have specific legal pathways for recourse. These center on (1) internal review and appeal rights under UK statute, and (2) dispute-resolution procedures for disagreements between UK and partner-country customs authorities under FTA origin chapters.

## 1. Appeals and Reviews: UK Statutory Pathway

A UK importer may challenge HMRC’s denial of preferential treatment by requesting a statutory review or appealing directly to the tax tribunal. The process is set by the Taxation (Cross-border Trade) Act 2018 (TCTA 2018, s. 16 and s. 20 for Advance Origin Rulings) and Part 5 of the Finance Act 1994, as applied by secondary instruments (notably SI 2020/1457). The steps are:

• Review by HMRC: The trader may request that another HMRC officer review the adverse decision. The deadline and procedure are outlined in the decision letter; typically, the trader has 30 days.
• Appeal to Tribunal: If unsatisfied, the trader may appeal to the First-tier Tribunal (Tax Chamber). Tribunal rules allow direct appeal in many cases—review is not always a prerequisite (see TCTA 2018, s. 16(4)).
• Scope: Appeals can challenge both factual determinations (e.g., whether origin rules were met) and legal interpretation. The tribunal can uphold, reverse, or remit the decision for further review.

## 2. Conflict with Partner Customs: FTA Procedures

UK FTAs—such as the UK–EU Trade and Cooperation Agreement (TCA Art. ORIG.24), UK–Japan CEPA, and others—contain binding protocols for resolving disagreements about origin between customs authorities of the two parties.

• Cooperation and Exchange of Information: The importing authority (e.g., HMRC) may request information from the exporting party’s authorities to verify origin claims. If the exporting authority refuses or supplies insufficient information, or finds the goods non-originating, preference is denied (TCA Art. ORIG.24(10)).
• Challenging a Partner’s Finding: If UK traders disagree with a denied claim based on a partner country’s negative verification, UK recourse is limited unless the FTA creates a direct right of challenge (rare). However, diplomatic channels and the FTA’s Trade Committee or consultation mechanisms may be triggered by government request.
• Finality: Under most UK FTAs, the importing Party’s customs decision is final unless successfully appealed through domestic procedures. Private parties have no standing in intergovernmental arbitration processes under the FTAs themselves.

## Best Practice

Document all communications, submission dates, and evidence provided. Appeal deadlines are strict. Exporters should coordinate with importers abroad if origin is challenged on the partner side, sharing ruling references and relevant UK correspondence. If interpretation differences persist between authorities, traders may escalate through their trade association, but must also pursue statutory appeal promptly.

Source: Taxation (Cross-border Trade) Act 2018, ss. 16, 20 Source: SI 2020/1457 Source: Trade and Cooperation Agreement, Article ORIG.24

A de minimis, or tolerance, provision allows small amounts of non-originating materials to be ignored when determining if a good qualifies as originating under a free trade agreement (FTA). Across UK FTAs, this safety valve often determines whether a product passes or fails a product-specific rule of origin—especially for goods only narrowly missing a tariff shift or regional value content (RVC) test.

1. UK–EU Trade and Cooperation Agreement (TCA): TCA Article ORIG.8 ("Tolerance") lays down a 10% value-based tolerance: for most products, non-originating materials that fail the product-specific change-in-tariff-classification rule may be used, provided their total value does not exceed 10% of the ex-works price. Textiles and apparel (HS Chapters 50–63) are excluded from this default, instead receiving a weight-based tolerance detailed in chapter notes of Annex ORIG-2. For RVC-based rules, the permitted non-originating content is built into the stated percentage; no extra de minimis relief applies. The 10% threshold is also mirrored in origin reference documents for UK–EU trade.

2. UK–Australia and UK–New Zealand FTAs: Both FTAs adopt the 10% de minimis for most goods: Article 4.7 of the UK–Australia FTA, and Article 3.7 of the UK–New Zealand FTA, allow non-originating materials (not meeting a change-in-tariff-classification rule) up to 10% of the FOB value. For textiles, a specific weight-based rule applies. As with the TCA, RVC-based product-specific rules have tolerance "baked in." The method for calculating value (ex-works or FOB) must match the agreement. For goods subject to both a RVC minimum and a tariff-shift rule, the de minimis applies only to the CTC element.

3. CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership): CPTPP Article 3.30 ("De Minimis") establishes a 10% FOB-value de minimis for most products. For textiles and apparel, alternative quantitative thresholds and conditions are found in Annex 3-A. As with UK bilateral FTAs, this cannot be layered on top of RVC-based limits. The de minimis is available unless explicitly excluded for the specific product under the PSR.

4. Older Continuity FTAs: Many UK continuity agreements, rolled over from the EU era (e.g., with Canada, South Korea), retain a 10% de minimis for non-originating materials by value, subject to their EU-treaty-derived schedules. As always, textiles and sensitive sectors are likely to have tailored weight-based tolerances.

Practical compliance:

• Never "double dip": where a RVC rule is stated, the de minimis threshold is incorporated—additional tolerance does not stack.
• Always check product-specific rules and chapter notes for exclusions (especially textiles).
• For mixed rules, apply the de minimis only to the relevant (usually tariff-shift) element.
• Track the base for calculating the threshold—"ex-works" for TCA, "FOB" for Australia/New Zealand/CPTPP.

In sum: the 10% tolerance is nearly universal by value, but practitioners must track product exclusions, calculation base, and FTA-specific quirks across supply chains. Source: TCA, Article ORIG.8; UK–Australia FTA Art. 4.7; UK–New Zealand FTA Art. 3.7; CPTPP Art. 3.30; origin reference documents collection, gov.uk