Rules of Origin have been in the news a lot recently. Businesses up and down the country have been struggling to make sense of the new arrangements for exporting inside and outside of the EU. With new processes and new paperwork, shipments are being held up and there are increasing concerns about the impact on the economy. The problems centre around new rules which describe which goods can be counted as being made in the UK, meaning they benefit financially from these new agreements.
UK exporters from a variety of sectors are actually finding that goods which they thought were classified as being made in the UK, which they could export tariff- and quota- free, don’t actually meet these new origin rules, putting their goods at a disadvantage compared to their EU competitors. The rules vary but in general, if at least 50% of the price of the product is considered as being made in the UK, then the entire product would be considered to be of UK origin. However, with modern supply chains and parts coming from all over the world, some UK exporters are struggling to understand what tariffs are payable, and to even complete the relevant paperwork.
Fortunately the British Chambers of Commerce have put together a guide to help businesses understand these new rules available in full here. Additionally, for further assistance you can contact your local Chamber of Commerce which you can find here.