Preferential Origin

Question 1

Who determines the rules of origin, importing or exporting country?

Answer 1

Rules of origin are those of the importing country.

Question 2

Purpose of preferential origin?

Answer 2

To provide duty benefits through free trade agreements

Question 3

Do you have to us preferential origin?

Answer 3

No, but if you do you have to ensure you comply with all rules

Question 4

Technical RoO x 5 types?

Answer 4

Tariff shift,
Value percentage,
Specific Process,
Alternative rule,
General Tolerance,

Question 5

BOM - name and purpose?

Answer 5

Bill Of Materials - Product is broken down into its parts, materials or ingredients to determine preferential eligibility.

Question 6

Out of 5 origin rules. Main 3 for determining preferential origin.

Answer 6

Tariff shift,
Value-percentage,
Specific Process,

Question 7

Previous guidance on RoO name?

Answer 7

Notice 828

Question 8

Main points of Notice 828

Answer 8

Importers - establish if goods met rule for Pref treatment

Exporters/Manufacturers - Find rules which must be satisfied for export under Pref

Question 9

Substantially/Sufficiently transformed Identified by three methods

Answer 9

Value added,
Tariff change
Qualifying manufacturing process.

Question 10

UK gov guidelines for Pref Origin 3 step process

Answer 10

Step One - Find 4 digit tariff heading

Step Two - Check if good are Wholly Produced. If yes they are originating products.

Step Three - Identify relevant tariff heading rule. Refer to FTA text for origin rule.

Question 11

Percentage of Value criterion example.

Answer 11

A certain value specified by the UK trade tariff must be added locally. I.E 60% of final value added locally, so no more than 40% of final value added with non-origination inputs.

Question 12

General Tolerance Rule - Purpose

Answer 12

Pre-defined maximum percentage of non originating goods.
Some product categories have a more specific tolerance and are not included.
General Tolerance tested first.

Question 13

Other origin rules: Principal of territory meaning

Answer 13

During manufacture, process needs to be completed uninterrupted within country claiming origin.

Question 14

Other origin rule: Direct transport rule

Answer 14

Originating product MUST go directly form origin country to destination. If traveling through third country not included in cumulation zone, transit document will be required!

No splitting, re-packing or processing in other counters. Can only be unloaded to preserve condition.

Question 15

Other Origin Rule: No-drawback rule

Answer 15

Used in certain FTA’s
As manufacture, you cannot import goods under customs suspension regime, then export under preference.

Either

1/ Claim reduced duty on imports for manufacture,
or
2/ Pay duties and allow customer to claim preference.

Question 16

Additional provisions: Cumulation - Explain

Answer 16

A type of flexibility withing Free Trade Agreements allowing products sourced from other countries to be classed as “Originating” as not to negate preferential origin status.

Question 17

Four types of Cumulation?

Answer 17

Bilateral
Diagonal
Regional
Full

Question 18

Bilateral Cumulation Explained

Answer 18

Operates between 2 counties
FTA must contain provision for cumulative origin
If Value added rule - Value of goods excluded from percentage threshold
If change tariff rule - no Verification of tariff change for either country goods needed
IF manufacture rule - no verification of materials from either country required.

Question 19

Diagonal Cumulation

Answer 19

Materials with originating status in a contracting country, used in manufacture in other contracting country will not lose status if then exporting to third contracting country.
All countries must follow same RoO and FTA principals

Question 20

Regional cumulation

Answer 20

Same as diagonal cumulation, but only exists und the GSP scheme.
Goods can be use form other contracting countries without affecting origin at export.
Origin of finished product = country goods last processed or based on customs value.

Question 21

Full Cumulation

Answer 21

As with other cumulation rule plus:
Goods worked or processed in a county not part of the FTA can be ignored in either Value added rule or Processing rule.

Question 22

Cumulation in a nut shell

Answer 22

When using cumulation, you expand the origination zone to include materials from partner countries.

Question 23

Origin of spare parts, tools and sets.

Answer 23

If normal equipment used along with the main product, and invoices at the same time, they can be called a set, and will share origin of the main product.

EXW price of the set must not exceed 15% from non-originating parts

Question 24

Six main elements to determine origin

Answer 24

Principal of territoriality,
Direct Transport Rule,
No-Drawback Rule,
Cumulation,
Accounting segregation,
Product Sets,

Question 25

Certificate of origin, How are they processed

Answer 25

Chamber of commons have multiple electronic systems in place.
You have to apply to use the system,
You must submit, formal undertaking and specimen signature,
You can use any chamber of commerce.

Question 26

Preference documents. What can be used x 4

Answer 26

GSP -Generalised System of preferences - Form A
EUR1 movement certificate
Suppliers declaration

Question 27

EUR 1 : 2 x types

Answer 27

EUR1 C1299 - For preference with countries within the EU
EUR-MED C1300 for pref with other participating countries

Question 28

How long can customs authorities check origin status

Answer 28

Up to three years after import. If there is not sufficient evidence, duty may be recovered

Question 29

What is an invoice declaration?

Answer 29

A declaration from exporter, on commercial invoice confirming the good are originating.
Used on low value goods, usually under £5500

Question 30

Invoice declaration deadline

Answer 30

usually 2 years,

Question 31

Supplier declaration?

Answer 31

Made by the supplier/Manufacture to confirm goods are originating

Question 32

Approved Exporter Status

Answer 32

An exporter who has met certain customs authority conditions. It can be removed if the exporter abuses authorisation.

Question 33

Applying for Approved Exporter Status

Answer 33

Export on regular basis,
Preference requirements met if required,
Docs will be completed carefully and taken care of.
Apply online with C1454 form.

Question 34

GSP full name

Answer 34

Generalised System of Preferences

Question 35

GSP, three frameworks

Answer 35

Lease Developed countries,
General framework,
Enhanced framework

Question 36

GPS - Last developed countries framework explained?

Answer 36

UN-Classed as least developed,
Imports are quote free and nil duty
does not apply to arms and ammunition

Question 37

GPS, General framework explained?

Answer 37

World back classed as low to low-middle income,
reduced import duty on certain goods.

Question 38

GPS, Enhanced framework explained?

Answer 38

World bank classed as Low and Lower-middle income.
countries with lack of export diversity and integration with international trading system