Understanding Rules of Origin (RoO) is essential if you want to benefit from reduced or zero tariffs when trading with the European Union, especially under the EU-UK Trade and Cooperation Agreement (TCA).
At Scanlon Freight, we regularly support our clients with origin assessments to help them remain compliant and maximise duty savings. Here’s a practical guide to help you do the same.
What Are Rules of Origin?
Rules of Origin determine where a product was “made” or “substantially transformed”, which is vital when claiming preferential tariff treatment under trade agreements like the EU-UK TCA.
In simple terms:
• They confirm the economic nationality of your goods.
• They allow you to claim zero or reduced customs duties—but only if your goods qualify.
Step-by-Step: How to Assess Rules of Origin
Step 1: Identify the Product’s HS Code
Start by finding the correct Harmonised System (HS) code for your product. This 6- to 10-digit classification is used globally and is critical for finding the correct origin criteria.
We can help verify your HS codes to ensure accuracy this is the foundation of your origin claim.
Step 2: Check the Product-Specific Rule of Origin
Each product (based on its HS code) has its own origin rule under the EU-UK agreement. These typically fall into three categories:
- Wholly obtained: e.g., agricultural goods or minerals extracted from the ground
- Change in tariff heading (CTH): substantial transformation must result in a new HS code
- Value-added rules: a percentage of the product’s value must come from originating materials or processing
Example: If you’re exporting electronics with components sourced globally, you’ll need to prove that enough manufacturing took place in the UK to meet the rule.
Step 3: Determine Whether Your Goods Meet the Origin Criteria
This involves checking your supply chain and production processes:
• Where are raw materials and components sourced?
• How is the product manufactured or assembled?
• Are non-originating materials within the permitted thresholds?
Complex origin assessments can be daunting, especially with mixed or global supply chains. Our team can help you map this clearly and ensure documentation is in place.
Step 4: Gather Proof of Origin
To claim preference under the EU-UK deal, you must declare origin and keep records.
There are two main ways to prove origin:
Statement on Origin: Added to your invoice by an approved exporter (including specific wording)
Importer’s Knowledge: The importer has enough documentation to prove the origin
Keep all supporting documents (e.g., supplier declarations, bills of materials, production records) for at least four years in case of customs audits.
Step 5: Claim Preferential Tariffs at Customs
When submitting your customs declaration, declare the origin status and ensure the correct paperwork (including the Statement on Origin) is provided.
Tip from Scanlon Freight: Missing or incorrect origin claims can result in backdated duties, fines, or delays. Let us check your declarations before submission.
Common Pitfalls to Avoid
Assuming UK-manufactured goods automatically qualify
Using the wrong HS code
Not retaining sufficient documentary evidence
Not understanding cumulation rules (where goods include materials from multiple countries)
Final Thoughts from Scanlon Freight
Rules of Origin can feel like a maze, but they’re also a golden opportunity to avoid tariffs and improve competitiveness when exporting to or importing from the EU.
At Scanlon Freight, we help businesses like yours assess origin compliance, manage documentation, and secure preferential duty treatment with confidence. Need help navigating your product’s origin status?
Let’s take ACTION and make sure your supply chain is set up for success.
