Contact us now for all your importing and exporting questions international@chamberelancs.co.uk 01254 356454.

A new era in UK customs regulation begins as exporters face penalties for errors on Preference Documents, for example EUR1, Long Term Supplier Declarations, Statement of origin used on commercial invoice’s etc. What do businesses need to know to stay compliant?

The United Kingdom has introduced the Customs (Preferential Trade Arrangements: Error in Evidence of Origin) Regulations 2024, setting a new precedent in customs law by requiring exporters to notify their customers of any material errors on Preference Documents. Applicable from 13 March 2024, these regulations target exports under specific trade agreements and impose penalties for non-compliance. This entry outlines the scope, implications, and strategic responses to these regulations.

In an era of increasing global trade scrutiny, the UK has taken a significant step to enhance the integrity of its export processes. The newly enacted Regulations represent a crucial development for exporters, especially those operating under the specified trade agreements with Canada, Turkey, New Zealand, Iceland, Liechtenstein, Norway, and the members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Historically, the responsibility for ensuring the accuracy of export documentation, including Preference Documents, rested largely with exporters. However, with the advent of these Regulations, there is now a formalized requirement for notification of any material errors, reflecting the UK’s commitment to uphold the obligations of its international trade agreements.

Scope of the Regulations: The Regulations apply exclusively to exports made under specific UK trade agreements, emphasizing the need for accuracy on Preference Documents.

Notification Requirement: Exporters are mandated to notify their customers upon discovering any material errors on Preference Documents, detailing how these errors may impact the validity of the evidence of origin.

Penalties: for Non-compliance: Failure to adhere to the notification requirement can result in a penalty of up to £1,000, signalling the seriousness with which the UK views the integrity of trade documentation.

Guidance from HMRC: The HM Revenue & Customs (HMRC) has provided detailed guidance on the notification process, ensuring exporters have the information needed to comply with these regulations.

How do you verify the accuracy of on Preference Documents?

Verifying the accuracy on Preference Documents is a critical step in ensuring compliance with the new UK customs regulations. Exporters must meticulously review the information contained within the certificate, including details such as the origin of the goods, the manufacturing process, and any applicable trade agreements.

This verification process may involve cross-referencing information with supporting documentation, such as invoices, bills of lading, and product specifications. Additionally, exporters should stay updated on the specific requirements outlined in the relevant trade agreements to ensure alignment with regulatory standards.

Implementing robust internal controls and quality assurance measures can further enhance the accuracy on Preference Documents, mitigating the risk of errors and potential penalties. Ultimately, thorough verification procedures are essential to maintain integrity and credibility in international trade transactions.

What do you need to notify?

• When an error is detected, you need to notify the exporters, and this should contain the following key details:
• Name and EORI Number: Provide the name and Economic Operator Registration and Identification (EORI) number of the notifying party, along with any individuals or entities they represent.
• Identification of Material Errors: Clearly outline each material error found in the evidence of origin, including:
• The date when the evidence was initially provided to the recipient and the identity of the provider.
• Correct information to rectify the error.
• Description of goods affected by the error under the relevant trade arrangement.
• Explanation of how the error could impact the accuracy or validity of the evidence.
• Name of Preferential Trade Arrangement: Specify the name of the preferential trade arrangement listed in the Schedule to which the notification pertains.

Ensuring comprehensive notifications with these details will aid in addressing material errors effectively and maintaining compliance with regulatory requirements.

Notifications need to be promptly provided in writing and dated when a material error is detected. They can be sent via post or email. If HMRC is the recipient of the notification, it should be sent specifically through post.

Conclusion

The Customs (Preferential Trade Arrangements: Error in Evidence of Origin) Regulations 2024 mark a significant shift in the UK’s approach to customs compliance, with a clear focus on transparency and accountability in export documentation. By introducing penalties for errors on Preference Documents, the UK government underscores its commitment to fair and accurate trade practices.

Exporters should urgently review and strengthen their internal processes to ensure compliance with these new regulations. Implementing robust checks and balances within the export documentation process will be crucial in avoiding potential penalties and maintaining smooth operations under the specified trade agreements – source: www.customsmanager.org

Our Recommendations

A good start for businesses is to update their knowledge of UK Trade Preference, Origin and Agreements and attend the nationally accredited training course on 8 October 2024 – other dates available too.  At the time of publishing this article the UK has agreed over 70 Trade Agreements around the world and these frameworks enhance the competitiveness of UK origin goods overseas.

We also urge businesses to contact your certification team at the East Lancashire Chamber of Commerce who can support and assist you in completing Preference documents either by phone 01254 356447 or email info@ecert.co.uk

For more news, click here.