The origin of goods: a potential problem that should not be underestimated
Brexit does not only influence UK-related import and export. Indeed, your company’s commercial relations with other countries may also be affected. The reason? Rules determining the origin of goods.
Exporting to EU partner countries
After Brexit, components produced in the UK will no longer be considered as originating in Europe. This will also apply to any processing carried out on British soil. When calculating the overall origin of a product, these components produced or processed outside the EU may prevent your goods from being attributed an “EU” origin. What are the consequences?
Under the EU’s free trade agreements, products of EU origin enjoy preferential access to partner countries. In practical terms, this means that import duties can be reduced or even eliminated altogether. As you can imagine, these benefits are likely to disappear if the European origin of your products is called into question.
Exporting to the UK
Goods imported into the UK are subject to import duties and quotas. Only if your products comply with the preferential rules of origin agreed between the EU and the UK can they avoid these duties and quotas. To find out whether or not a product complies with these rules, please check the agreement or the Access2Markets platform.