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Rules of Origin

From January 1st 2021, the UK moved to trading based on a new Free Trade Agreement (FTA) – the ‘Trade and Cooperation Agreement’ (TCA), between the UK and the EU.

To export tariff-free under the TCA, goods must meet the UK-EU preferential rules of origin. This means that there must be a qualifying level of processing in the country of export to access zero tariffs. This applies to EU origin goods imported and moving through the UK from a EU Member State to another EU Member State, as well as goods imported from the Rest of World.

These rules are set out in the TCA and determine the origin of goods based on where the products or materials (or inputs), used in their production, come from. Their purpose is to ensure that preferential tariffs are only given to goods that originate in the UK or EU and not from third countries (those apart from UK and the EU Member States).

The HMRC has published the following useful video Rules of Origin recorded webinar – YouTube which also has some helpful links to assist in understanding the Rules of Origin.



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