Policy & Compliance
liability under Part 2, Regulation 6 of the Regulation is extended to: (a) The person’s personal representative; (b) The person’s trustee in bankruptcy, or trustee or interim trustee in a sequestration; (c) A receiver or liquidator appointed in relation to the person or any of the person’s property. The regulation in itself is interesting as it clearly connects both trading parties (exporter- importer/seller-buyer) in their joint responsibility to ensure rules and evidence of preferential origin are correct and available under a sanction of financial penalties. What is important is that it is not confined to a specific FTA, although individual FTAs also contain similar provisions albeit usually without a specific sanction regime. Keeping statements For instance, article 59 of the Trade and Cooperation Agreement between the EU and the UK may serve as a case in point. It states that “an exporter who has made out a statement of origin shall, for a minimum of four years after that statement on origin was made out, keep a copy of the statement of origin and all other records demonstrating that the product satisfies the requirements to obtain originating status”. This new legislation is clearly devised to close the circuit of responsibility in a new world of international trade where evidence of origin is increasingly defined by self-certification or the importer’s knowledge, rather than an official document with a wet stamp and signature. Having initially reviewed the regulations, BIFA does not see a direct risk to Members (a personal representative is not equal to a Customs representative) but we will seek further clarity and provide updates if necessary. Members should at the same time liaise with their clients and
New legislation targets abuse of preferential origin declaration An overview of the Customs (Preferential Trade Arrangements: Error in Evidence of Origin) Regulations 2024 – and consideration of whether BIFA Members will be affected “ BIFA does not see a direct risk to Members but we will seek
E vidence of origin, especially in the context of free trade agreements (FTA) and preferential duty rates, is something that is usually regarded as an import-related topic. Freight forwarders and Customs agents do not commonly review or question commercial documentation provided by exporters for accuracy of proof of origin as it is, in most cases, impossible for them to verify whether evidence behind an origin declaration is available and conforms with applicable regulations. Yet BIFA Members should be aware and communicate to their clients that a new regulation focusing solely on accuracy of evidence of origin required for
goods “to be subject to a lower rate of duty in the other country or territory”, where those goods originate from the UK, came into force on the 13 March 2024. Obligation to inform The Customs (Preferential Trade Arrangements: Error in Evidence of Origin) Regulations 2024 places an obligation to inform the recipient (a person in a country or a territory outside the UK) of any material error discovered in the original evidence of origin provided for the purpose of benefiting from a preferential duty rate. The legislation subjects the evidence provider, who fails to comply, to a penalty of up to GBP1,000. In fact, the potential
where possible inform them of this new legislation. Scan the QR code to review the legislation.
further clarity and provide
updates if necessary
April 2024 | 21
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