As the UK prepares to leave the EU on 1st January, our International Business department share their guidance regarding issuing UK certificates of origin, alongside answers to Frequently Asked Questions.
The East Lancashire Chamber of Commerce and the British Chambers of Commerce have worked with both Her Majesty’s Revenue and Customs (HMRC) and the Department of International Trade (DIT) to ensure a smooth transfer to the UK-EUR1 and the UK Certificate of Origin on the 1st January 2021 which will replace the EUR1’s and EC Certificates of Origin currently issued.
UK Certificate of Origin
From the 1st January 2021 the East Lancashire Chamber of Commerce will only issue UK Certificates of Origin. Please click here to see the attached guidance for completing the UK Certificate of Origin, and for additional FAQs click here. You can also view them below. We strongly recommend that you use our online providers (eCert) to apply for your CO’s as these systems will be updated from the 1st January.
The UK-EUR1 will be used where the UK has signed a new trade agreement with another country. A list of these agreement can be found here. Exporters must ensure that their goods qualify for preferential treatment under the new agreement by checking the appropriate Rules of Origin for their goods. This may change if a deal is signed with the EU. Please regularly check the HMRC website for updated customs notices relating to UK EUR1’s etc.
As far as we understand ATR’s will not be used after the 31st December 2020. If a trade deal is agreed with Turkey, then we would expect a UK-EUR1 to be used to declare origin and gain preferences.
Our website has been updated to reflect the above from the 4th January 2021.
For further details, please contact Marie White firstname.lastname@example.org or 01254 356448.
Guidance for issuing UK Certificates of Origin
From the end of the Brexit transition period on the 31st December 2020 the UK will start issuing UK Certificates of Origin.
Although the process and the requirements for foreign evidence will remain unchanged there will be a few amendments as follows:
Box 1 – Consignor
Insert the full name and address (including country) of the UK exporter. The name and address of an EU multi-national company on its own will no longer be allowed in this box but can be issued “for and on behalf of” an overseas company.
Box 2 – Consignee
Insert the full name and address of the foreign recipient of the goods. If the consignment is made to order and the consignee is not known, then insert “To Order: For shipment to …………… (the name of the country of destination)”.
Box 3 – Country of Origin
Insert the country of origin of the goods. UK Origin will be declared first followed by goods originating in the other countries in alphabetical order. As we are no longer in the European Union or the transition period we will no longer use either “European Community” or “European Union” in Box 3.
Box 4 – Transport details (optional)
Although the method of transport of the goods can be indicated, e.g. road, airfreight, sea freight etc. It is an option box and therefore it can be left blank. Where more than one method of transport is being used insert “Mixed transport”. We would recommend the name of vessels are not used unless it is required as part of a letter of credit, as vessels used can be changed prior to shipment.
Box 5 – Remarks
This can be left blank unless the Replacement statement is required or any additional information e.g. Letter of Credit details need to be quoted.
Box 6 – Shipping marks, item numbers, number and kind of packages, description of goods
Insert the number and type of packages to be consigned e.g. 4 boxes, 3 bales, 5 cartons, etc., together with any shipping marks and numbers appearing on the packages.
If the goods are not marked, then indicate “Unmarked” or “No Marks”.
If the goods consigned are not packed insert “unpacked”. If the goods are simply addressed to the customer insert “fully addressed”.
Insert the description of the goods. This must be sufficient detail to clearly indicate the nature of the goods. Descriptions must not be too general, vague, ambiguous or solely given by trademark or brand name e.g. Spare parts or Hoovers or something similar.
Should there be insufficient space in box 6 to describe all the goods adequately, then it is permissible to insert a general description of the goods followed by the phrase “as per invoice number… dated…..”.
After the final entry in box 6, the box should be ruled across and all unused space crossed through diagonally.
Box 7 – Quantity
Insert gross and net weight in kilos. The weight can be shown in imperial, but a metric weight must also be shown. Should the weight be unknown, this detail may be replaced by other identifying particulars e.g. number of individual items, metres, litres etc.
Box 8 (Certificate of Origin)
The Chamber stamps as normal following standard procedures.
Will UK certs of origin will be available from 1st January 2021?
Yes. Regardless of a deal or not the UK will issue UK Certificates of Origin from the 1st January 2021.
Will I be able to raise EC/EU certs of origin after the 31st December 2020?
No. Under no circumstances will you be able to raise EC certs of origin.
What happens if we need to cancel & replace an EC certificate of origin after we leave the EU?
A UK Certificate of Origin would be issued with details of the EC Certificate in Box 5 as normal.
What happens when a Letter of Credit or contract asks for an EC Certificate of origin after we leave the EU?
The Letter of Credit would need to be amended.
Do we know which markets currently requiring EU Certs of Origin will require UK Certs of Origin in the event of a no deal Brexit so as to access preferential tariff rates based on EU FTA’s?
Non-preference certificates of origin do not grant access to preferential tariff rates. We expect all countries that previously accepted EC Certificates of Origin to still require and accept UK Certificates of Origin.
Will the Arab Indemnity letter change?
Yes. A new version of the Arab Indemnity letter will be available
How do we dispose of unused EC Certificates of Origin?
Certificates of Origin held are to be shredded.
Do we know if markets with FTA’s with the EU will accept Invoices with EU Declaration and/or EC Cert of Origin and/or EUR1 for orders that had already been dispatched prior to the exit date but arrive after the exit date, or if amended documents will be required?
Both the EU and the UK have said that documents issued for goods leaving the UK before we leave the EU are legal and should be honoured.
How is origin declared?
Origin determination in the main will not change for non-preference certificates of origin. However, declaring origin in box 3 on a UK certificate of origin UK origin can no longer be declared under European Community, it will need to be shown United Kingdom origin, then followed any other individual countries of origin in alphabetical order.
For the new UK preference EUR1 the rules as set out in the individual trade agreements are to be followed.
Can UK certificate of Origin be raised with an EC multinational in the Consignor Box?
UK company in the Consignor Box – it cannot have just an EC multinational address
Can an UK certificate of Origin be raised for goods being shipped from the EU?
A UK Certificate of Origin can be issued if the following criteria are met:
- UK Establishment is head office or main logistics/supply chain hub
- Formal undertakings/ signature lists held for UK addresses
- Chambers can support the origin claim with evidence in the normal way
Will the format of the UK EUR1 be different to the EC EUR1?
As far as we know the format will be the same.
Will HMRC be printing new EUR1’s?
Yes. HMRC have printed new UK-EUR1’s and will send them directly to Chambers.
Will we be able to issue replacement, duplicate or retrospective EUR1’s and ATR’s post Brexit?
We have asked HMRC for a ruling on this and will let you know once they have replied.
Will the direct shipment rule apply to UK-EUR1’s?
As far as we know yes.
Will we issue ATR’s after the transition period ends?
We will stop issuing ATR’s on the 31st December 2020 as these documents confirm that the goods are in free circulation within the EU single market. As we leave the EU single market on the 31st December, we will be unable to issue them. If a rollover deal is agreed with Turkey, it is expected that a UK-EUR1 will be used to claim preference.