Claim preferential origin under a UK trade agreement

Step-by-step guide for claiming a reduced or zero tariff rate on goods imported into Great Britain under a UK free trade agreement (FTA). Covers identifying the relevant FTA, determining the product-specific rule of origin, obtaining a valid proof of origin, entering the preference code on your CDS declaration, and keeping records for the four-year retention period.

UK-wide
Guide summary

Check if your imported goods qualify for lower tariffs under a UK trade agreement. Get proof of origin from your supplier, enter the correct code on your customs declaration, and keep records for 4 years. Wrong claims risk penalties of up to £2,500 per error.

  • Identify the correct free trade agreement (FTA) for your goods' country of origin
  • Check the product-specific rules of origin in the FTA
  • Obtain proof of origin from your supplier (invoice statement or EUR1 certificate)
  • Enter the preference code 300 for EU goods on your customs declaration
  • Keep all origin records for 4 years from import date
  • Verify commodity codes using the UK Trade Tariff tool
  • Penalties apply for incorrect claims (up to £2,500 per error)
  • Different FTAs have different rules - check each one separately
On this page
UK-wide

Related guides in International Trade

If you import goods into Great Britain from a country that has a free trade agreement (FTA) with the UK, you may be able to claim a reduced or zero rate of import duty. This is called claiming preferential origin. The duty saving can be substantial, but the claim is only valid if you can prove the goods meet the FTA's rules of origin and you hold the correct documentation at the time you make your customs declaration.

This guide explains how to claim preferential origin under any UK FTA in force, with the UK-EU Trade and Cooperation Agreement (TCA) used as the worked example. The same five-step process applies to claims under the CPTPP, UK-Japan CEPA, UK-Australia, UK-New Zealand, UK-South Korea and other bilateral agreements, although the product-specific rules and proof-of-origin formats differ in each case.

Preferential origin is a separate concept from non-preferential origin. Non-preferential origin determines the country of origin for trade-defence purposes such as anti-dumping duties or quotas. Preferential origin determines whether your goods qualify for a lower tariff under an FTA. A customs declaration may need both.

Before you start

Make sure you have:

  • your GB EORI number;
  • the 10-digit commodity code for the goods (from the UK Integrated Online Tariff);
  • the country of origin and country of dispatch;
  • a commercial invoice and packing list;
  • any production records, supplier declarations, or bills of materials needed to evidence the rule of origin.
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    1. Identify the FTA in force for the country of origin

    Use the UK Trade Tariff to look up your commodity code and the goods' country of origin. The Tariff shows the default UK Global Tariff (UKGT) rate alongside any preferential rates available under FTAs. If a preferential rate is shown for the country of origin, an FTA is in force. Common FTAs for GB importers include the UK-EU TCA (EU member states), the CPTPP, the UK-Japan CEPA, UK-Australia, UK-New Zealand, UK-South Korea, and the EEA EFTA agreement. Note that country of origin is not the same as country of dispatch: goods shipped from a hub country (for example the Netherlands) may have a different origin (for example China), in which case the EU TCA does not apply.

  2. 2

    2. Determine the product-specific rule of origin

    Each FTA contains an annex of product-specific rules (PSRs) setting out what processing or transformation must take place in the FTA partner country for the goods to qualify as originating. PSRs are organised by HS chapter and heading, so you need your commodity code first. Typical PSRs require the goods to be wholly obtained (such as minerals extracted in the partner country), or to undergo a change of tariff heading, or to meet a value-added threshold (for example, no more than 50 per cent non-originating materials by ex-works price). Check whether cumulation rules apply: under the TCA, EU and UK content can be cumulated, but inputs from outside the UK or EU must satisfy the PSR through processing. Do not assume the goods are wholly obtained without checking the PSR — a processed product almost never is.

  3. 3

    3. Obtain valid proof of origin

    An importer claim must be supported by one of two proofs: a <strong>statement on origin</strong> made out by the exporter, or <strong>importer's knowledge</strong>. A statement on origin under the TCA is a prescribed-text declaration on a commercial document (invoice, delivery note, or other) signed or referenced by the exporter. For EU exports to GB the exporter must be registered in the REX system if the consignment value exceeds €6,000. A TCA statement on origin can cover a single shipment or multiple shipments over a period of up to 12 months and remains valid for 12 months from the date of issue. Importer's knowledge means you, the importer, hold documentary evidence (production records, supplier declarations, bills of materials) sufficient to prove the PSR is met. CPTPP and other FTAs use different formats and rules — for example a self-certified origin declaration with a defined data set. Check the relevant FTA's origin protocol before relying on a particular proof.

  4. 4

    4. Enter the preference code on your CDS declaration

    On your Customs Declaration Service (CDS) import declaration, enter the appropriate preference code in Data Element 4/17 and the correct origin country code in Data Element 5/15. For TCA preference, the preference code is "300" combined with the EU country of origin. For other FTAs, consult HMRC's CDS Volume 3 declaration completion guide for the correct code. Hold the proof of origin at the time of declaration: a claim made without holding the proof is invalid even if a proof is later obtained. If you use a customs intermediary, brief them on the preference claim and provide them with the proof reference. Under indirect representation the intermediary is jointly and severally liable for any incorrect claim.

  5. 5

    5. Retain the proof of origin and supporting evidence for four years

    Under regulation 18 of SI 2018/1248 you must keep records relating to a customs declaration for four years from the end of the year of importation. For preference claims the records include the proof of origin (statement, REX reference, or importer's-knowledge evidence file), the commercial invoice, transport documents, and any supplier declarations or production records that underpin the claim. HMRC may request these on a post-clearance audit and will recover duty plus interest, and may apply civil penalties, if the claim cannot be substantiated. If you relied on importer's knowledge, your evidence file must be capable of proving the PSR is met without reference to the exporter.

  6. 6

    6. Verify and renew long-term proofs before they expire

    A TCA statement on origin covering multiple shipments is valid for up to 12 months. Diary the expiry date and obtain a fresh statement before relying on it for any shipment after that date. Continuing to claim TCA preference under an expired statement is one of the most common reasons HMRC denies a claim on audit and assesses underpaid duty.

Five common errors that invalidate a preference claim

Most preference claims that fail on audit fail for one of these reasons. Check each before submitting your declaration.

  1. Missing PSR check. Assuming the goods are wholly obtained without consulting the FTA annex. Manufactured and processed goods are almost never wholly obtained — they must satisfy the change-of-tariff or value-added test in the PSR for that commodity code.
  2. Expired statement on origin. A TCA statement on origin is valid for 12 months from the date of issue. Long-term suppliers often issue an annual statement; if the renewal slips, every claim made under the lapsed statement is invalid.
  3. Wrong preference code on the declaration. Entering a preference code for a different FTA, or the wrong origin country code, voids the claim even if the goods do qualify. Check Data Element 4/17 and 5/15 before submission.
  4. Lacking an importer's-knowledge file. Claiming on importer's knowledge without holding the evidence at the time of declaration. The exporter does not have to provide the file — you must obtain and retain it yourself.
  5. Failing the cumulation test. Counting third-country inputs as originating where the FTA does not allow it. The TCA permits bilateral cumulation between the UK and EU; CPTPP allows full cumulation between all parties. Material from a non-FTA country must satisfy the PSR through processing in the partner country — it does not become originating simply by being shipped from there.
Penalty risk

Incorrect preference claims trigger duty repayment and civil penalties

Penalty:
<p>If HMRC determines on audit or post-clearance check that
a preference claim was incorrect, you must repay the
underpaid duty with interest from the date of importation.
HMRC may also issue a civil penalty under Schedule 1 of the
Customs (Import Duty) (EU Exit) Regulations 2018
(SI 2018/1248) and sections 25 to 28 of the Finance Act
2003. Penalties are tiered at £1,000 for less serious
contraventions and £2,500 for more serious contraventions
such as failing to keep records, with a reasonable-excuse
defence available.</p>
<p>An unprompted voluntary disclosure made before HMRC
opens an enquiry significantly reduces penalty exposure
and, in many cases, eliminates the civil penalty. If you
discover a historic preference error, disclose it through
the C2001 amendment route or by writing to the National
Clearance Hub before HMRC contacts you.</p>
IMPORT & EXPORT Requirement

Relevant if you import or export under an FTA

This guide covers import claims into Great Britain. If you are an exporter making out statements on origin for customers in an FTA partner country, you must hold equivalent supporting evidence and may need to register in the UK Exporter system (or the REX system for EU-bound goods of EU-origin content). The same product-specific rules apply in either direction.

Look up your commodity code and tariff rate on the UK Trade Tariff (opens in a new tab)

Official guidance on GOV.UK

Authoritative HMRC guidance on rules of origin and FTA preference claims.

What to do next

Once you have confirmed your goods qualify and you hold the proof of origin, the next step is to submit your CDS declaration with the preference code entered correctly. See Make a customs declaration on CDS for an import into Great Britain for the full declaration walkthrough.

If you have discovered a historic preference error on previous imports, see the guidance on correcting a customs declaration error and making a voluntary disclosure to HMRC before any enquiry is opened.