The experts in our International Team have put together this guide for businesses that trade internationally.
Certificates of Origin
The Chamber is in possession of stocks of United Kingdom (UK) Certificates of Origin (C of O) that shall replace European Community (EC) Certificates of Origin in the event of a no-deal Brexit after 1 November 2019. The team is currently providing exporters with only small quantities of blank EC C of Os to prevent large quantities of obsolete certificates being in circulation after 1 November.
Closer to the withdrawal date (currently 31 October 2019) the export documentation team shall send exporters new United Kingdom (UK) blank C of Os for use after the UK’s exit from the EU. The UK C of O is very similar to the EC one and at this stage instructions for completing the document will remain largely unchanged, with the exception of box six (see below). Full guidance shall be provided closer to the date the of EU exit.
When using the ez-Cert service, the way you access the service shall remain unchanged, the certificate however shall change from an EC C of O to a UK C of O.
Chambers anticipate that countries that currently require an EC C of O for imported shipments will require a UK C of O after the UK leaves the EU.
Letters of Credit
If working to a Letter of Credit and it requests a European Community Certificate of Origin, the LC will need to be amended.
ATA Carnet – Temporary Exports
The service remains largely unchanged. In the event of a no-deal Brexit, EU countries potentially would request an ATA Carnet for temporary exports.
Shipment and Dispatch Time Lag Implications
Both the EU and the UK have said that documents issued for goods leaving the UK before EU exit are legal and should be honoured. This applies to invoices with an EU Declaration, EC C of Os, EUR1 for orders that have been dispatched prior to the exit date but arrive after the exit date.
Rules of Origin
The determination of Origin will not change for UK C of Os (non-preference documents). UK origin will no longer be part of EC origin and therefore when preparing a UK C of O, the exporter is required to state in box six ‘United Kingdom’ if the goods are of UK origin.
If the consignment includes goods of foreign origin, these will need adding in box six in the normal way e.g. European Community – France, or European Community – Spain and Lithuania, China, Taiwan etc.
For the new UK preference EUR1 the rules set out in the individual trade agreements shall need to be followed for determining origin. This is a HMRC document and therefore any changes or replacement blank documents will be at HMRC’s discretion. The Chamber shall keep exporters up to date with details as they are made available.
A list signed UK trade agreements transitioned from the EU can be found here.
Information correct at the time of going to press and is subject to change. Contact the Chamber’s Export Documentation team for current advice on 0333 320 0333, select option four followed by option one.