Origin
Where was it made?
The EU has preferential trade agreements with many other countries and groups of countries. Under those agreements, countries can export their products to the EU at reduced rates of customs duty (zero, in many instances) BUT only where they can demonstrate that the goods meet specific origin rules. The origin rules differ, depending on the tariff classification of the product, as well as on the terms of the agreement covering the specific country. Some agreements are one-way only, whilst other are bilateral.
In our experience, however, the integrity of preferential origin evidence is no longer something that can be taken at face value. Many importers have faced demands for back-duty following a subsequent disqualification of their claim for preference – in some cases this has been up to 3 years after the event. There are ways of minimising this risk, though. We can help to implement “best practice” processes, which are designed to help clients to ensure compliance with complex preferential trade agreements and support claims for preference. This in turn helps to cut the cost of duty.
In our experience, however, the integrity of preferential origin evidence is no longer something that can be taken at face value. Many importers have faced demands for back-duty following a subsequent disqualification of their claim for preference – in some cases this has been up to 3 years after the event. There are ways of minimising this risk, though. We can help to implement “best practice” processes, which are designed to help clients to ensure compliance with complex preferential trade agreements and support claims for preference. This in turn helps to cut the cost of duty.
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