to this EUR1A'TR Training Course

1
Welcome

• to this EUR1/A.TR Training Course
• on behalf of BCC and
• HM Revenue Customs
• Your trainer for the day is

2
Preferential Trade

• Is carried out under bi-lateral agreements
  between the EC and Partner States
• The agreements are contained in Official Journals
  (OJs) issued by the European Commission

3
EUR1s

• This part of the course relates to EUR1 movement
  certificates, which Chambers are authenticating
  on behalf of HMRC

4
The Aim of Preference for EUR1s

• To give a commercial advantage to indigenous
  products-
• Natural resources
• Grown or wholly produced
• Significant manufacturing process

5
Benefits of Preferential Origin

• Overseas customers may pay a lower rate of duty,
  or none at all, on goods imported from the EC.
• Makes EC originating goods more competitive

6
Preferential Origin does not mean-

• Duty paid status/ free circulation
• Non-Preferential Origin (different rules of
  origin apply to EC certificates of origin)

7
Preference Conditions

• Exported goods must meet the rule of origin
• Direct Transportation conditions must be met
• Production must go beyond minimal processing

8
Export Preferences

• Rules of origin are detailed in Customs notices
  828 832
• Procedures are found in Customs notice 827

9
How exporters can work out if goods Originate

• Confirm Tariff Heading - advise exporters where
  to obtain this information Tariff
  Classification Helpline 01702 366077

10
How exporters can work out if goods Originate

• Confirm that Preference is available (applicable
  to Tariff chapters 1-24) useful website for this
  information http//mkaccdb.eu.int (Applied
  Tariff database)

11
How exporters can work out if goods Originate

• Check Rules of Origin in the appropriate Customs
  Notice 828 or 832

12
ORIGIN RULES - Notes

• When a rule in Customs notices 828 832 refers
  to materials, it means non-originating materials.
• All materials are considered to be non-
  originating, unless proven otherwise
• All non-material costs (e.g. labour, overheads
  profit) are originating.

13
ORIGIN RULES

• The main types of origin rules are-
• 1. Wholly produced Mainly agricultural/
  mineral products
• 2. Change of Tariff Non-originating
  Heading materials to be in different
  TH to finished product
• 3. Stage of production Particularly textiles
• 4. Percentage rule Limits the value of
  non-originating materials Some rules are a
  combination of the above-
• E.g. Change of Tariff Heading, plus a
  percentage rule

14
Wholly Produced
15
Change of Tariff Heading

• Timber TH 4407, imported from outside the EC is
  manufactured into a Chair TH 9403
• This satisfies the rule of origin which requires
  non-originating materials to change TH.
• For preferences purposes, use only the first 4
  digits - only one needs to change, eg 7601 to
  7602.

16
Stages of Production - Textiles

• Fleece - scoured, bleached, carded, combed etc.
  into fibres
• Fibres - spun into yarn
• Yarn - woven or knitted into fabric
• Fabric - CMT (cut make and trim) into garment
• (usually at least 2 stages of production or
  finishing operations in EC)

17
Percentage Rule

• Limits the value of non-originating material
• For example - TH 9102 Manufacture in which the
  value of all the materials used does not exceed
  40 of the Ex-Works price
• (Remember material means non-originating
  material)

18
EX Rule

• If the product does not match the description
  shown against Ex, apply the general rule at the
  beginning of the chapter.
• Ex means the rules listed in columns 3 4
  are exclusive to the goods described in column 2
• EX MEANS EXCLUSIVE

19
Origin Rules Exercise 1

• Wristwatch, TH 9102 manufactured in the EC as
  follows-
• Case 1 - UK origin
• Movement 4 - Japanese origin
• Strap 2 - Spanish origin
• Battery 50p - Chinese origin
• Labour/Profit 1.50
• -------
• Total 9.00 (Ex-Works Price)
• Does the wristwatch qualify for preferential
  origin for
• export to Israel?

20
Origin Rules Exercise 2

• Electronically Ignited Flashbulbs of TH 9006,
  manufactured in the EC -
•  
•  Which rule is applied when the goods are
  exported to Norway?

21
Origin Rules Exercise 3

• A motor car of TH 8705 is manufactured in the EC
  as follows-
• Engine (US) 1800
• Labour 1000
• Chassis (Malaysia) 1900
• Sundries (Various Non-EC) 400
• Profit 1300
• Tyres (France) 300
• Overheads 1800
• Upholstery/Trim (Spain) 1500
• EX-WORKS PRICE
  10,000
• Does the car qualify for preferential origin
  when exported to South Africa?

22
Completion of the Form

• EUR1 form is completed as per Notice 827
• (see example provided)
• HMRC have started to issue a new version of the
  EUR1 form (no page 5 6).
• Still OK to complete old and new forms

23
The Chamber checks

• Details against invoice (or other backup
  document)
• For correct declaration on page 4
• For original signature in box 12 on page 1 and on
  page 4
• If you need to reject the EUR1, form BCC C144
• (incomplete or incorrect movement certificate
• C1299) may be completed.

24
Stamping the EUR1 means

• that the document is destined for a
  preference-giving country (check list in Customs
  tariff and/or see Customs notice 828 etc)
• that the form EUR1 has been correctly completed
  
• There is no indication that the goods do not
  qualify for preference

25
Stamping of EUR1 - Mixed Consignments

• Exporters may be unable to avoid showing
  originating and non-originating items on their
  invoices.
• Exporters must mark the invoice clearly
• (eg with an asterisk ) to show which goods are
  non originating
• Put a statement in Box 8 immediately below the
  goods description Goods marked on the invoice
  are non-originating and are not covered by this
  movement certificate - see notice 827

26
Stamping the EUR1

• If all in order, apply HMRC stamp to
• box 11, page 1 3 and sign
• By stamping the EUR1 you are not saying you have
  verified that the goods meet the rule of origin
  and thus qualify for preference
• Chambers staff must not add to or amend EUR1 (or
  A.TR) documents on behalf of applicants - under
  any circumstances

27
Stamping the EUR1

• Verification takes place on request to HMRC by
  overseas customs by completion of page 2 of the
  EUR1
• No other Chamber stamp must be applied to this
  document, ie the alteration approved stamp. The
  Customs stamp should be used for any alterations.

28
Retrospective EUR1s

• If the goods have left the country before
  application for EUR1 is made issued
  retrospectively is stated in Box 7
• Detail of place and date of exportation must be
  provided (copy of bill of lading, airway bill,
  etc)
• Full details of procedure see Notice 827,
  section 3.11

29
Additional Information

• Notice 827 also gives information to exporters
  on
• Suppliers declarations Exporters may need to
  obtain them if they buy EC materials or finished
  goods
• Simplified procedures regular exporters may
  apply to HMRC for approved exporter status to
  avoid completion of EUR1 forms

30
Additional Information

• If EUR1 is signed by a forwarding agent, ensure
  there is written authorisation from the exporter
  (see Notice 827, section 3.3)
• Application copies must be kept for 3 years
  minimum
• Double checking procedures should apply as with
  EC documents