In terms of goods, the greatest benefit arising from the TCA is the potential for continued tariff and quota free trade between the EU and UK \u2013 but it comes with conditions.\u00a0 Imported goods will only qualify for tariff and quota free access where the respective EU-UK producer or exporter of the goods can prove that the goods \u201coriginate\u201d from whichever side exported them \u2013 proving origin is all about the qualification and application of product-specific rules of origin.\u00a0<\/p>\n
These rules ensure that preference under the TCA can only be claimed on goods that originate and are sufficiently processed in either party to meet the relevant product-specific rules of origin.\u00a0 Where the rules of origin cannot be satisfied (and in certain areas there are \u201cback stop\u201d or tolerance rules that can be used), the full rate of EU or UK duty will apply at the time of importation. However, rules of origin are notoriously difficult \u2013 a difficulty which is multiplied by the highly integrated nature of EU-UK supply chains, distribution networks and confusion arising from the transitional arrangements between the EU and UK.\u00a0<\/p>\n
One key impact from the TCA, which is affecting integrated EU-UK supply chains \u2013 in unpredictable ways \u2013 is its inability to \u201cretain\u201d origin on re-exports. Practically, if a UK company imports a product from the EU under EU origin (paying zero duty under the TCA) and stores, breaks bulk and subsequently delivers some of the product back to the EU, the UK company cannot declare UK origin (as they have not done enough to the goods) and there is no ability under the TCA to claim EU origin for redelivered goods to the EU.\u00a0 The resulting impact means that businesses \u2013 that once traded freely between UK and EU markets \u2013 could see their goods exposed to new and additional duty costs each time they cross the Channel, unless alternative customs reliefs and duty optimisation strategies are implemented.<\/p>\n
Where the publicity machine for the TCA states \u201cduty and quota free\u201d trade, the reality for some commodities may be entirely different \u2013 as certain goods under the EU-UK TCA may be subject to interim rules of origin and special rules of origin, that allow for relaxations on certain requirements.\u00a0 For example, aluminium imports into the UK from the EU that would otherwise be required to meet reasonably stringent rules of origin under the TCA, may still meet the rule of origin requirements where only one part of the rule can be satisfied.\u00a0 The \u2018catch\u2019 with this special rule however is that it will only apply for a limited volume in the form of quotas (e.g. 95,000 tonnes per year) and where exhausted, the standard rule of origin will apply.<\/p>\n","protected":false},"excerpt":{"rendered":"In terms of goods, the greatest benefit arising from the TCA is the potential for continued tariff and…\n","protected":false},"author":2,"featured_media":423802,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5226],"tags":[802,748,144779,2000,299,5187,1699,4884,16,15],"class_list":{"0":"post-423801","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-brexit","8":"tag-brexit","9":"tag-britain","10":"tag-cross-border-tradecustoms-dutiesimports","11":"tag-eu","12":"tag-europe","13":"tag-european","14":"tag-european-union","15":"tag-great-britain","16":"tag-uk","17":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115202937564007523","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/423801","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=423801"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/423801\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/423802"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=423801"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=423801"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=423801"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}