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In 2023, the UK signed new trade agreements with several nations; however, while trade agreements may share structural similarities, noting the details within them is crucial to ensuring you provide the correct information on your commercial documentation.
When exporting goods under preference to Australia or New Zealand, the UK exporter must provide the correct origin statement in the prescribed format for the importer to claim preference.
A "statement of origin" is a document or declaration often required in trade agreements to prove the origin of a product. In the context of the UK-Australia Free Trade Agreement, it would determine whether a product qualifies for the preferential tariff treatment granted under the agreement.
Under both the Australian and the New Zealand agreements, the statement of origin format initially caused some confusion with UK exporters when they were asked for further details from their Australian or New Zealand counterparts.
While a specific format does not constrain the statement of origin and may be integrated into a commercial document, it exclusively pertains to UK-origin goods. Therefore, if your invoice encompasses both preferential and non-preferential goods, you must provide further detail, such as a separate origin declaration. The template for this can be downloaded from gov.uk here.
It's worth noting that this agreement only permits the use of the prescribed statements within each agreement. Unlike other agreements, for example, the UK EU TCA that allow for additional clauses like "unless otherwise clearly stated," this one does not provide that flexibility for goods of different origins.
Link to UK Guidance for the UK-New Zealand Free Trade Agreement - https://www.gov.uk/government/collections/uk-new-zealand-free-trade-agreement
Link to UK Guidance for the UK-Australia Free Trade Agreement - https://www.gov.uk/government/collections/uk-australia-free-trade-agreement
If you are interested in exploring this topic further, you might find it worthwhile to consider the training courses and live clinics offered by Strong & Herd LLP:
Focus On: Understanding Free Trade Agreements
With the UK developing new independent trade arrangements both to encourage the export and import of goods and services from affiliated markets, this session is a must. Some knowledge of customs regulations is recommended or attendance on courses introducing this topic. This course looks at the structure of new and old UK international trade agreements, the key rules of origin and how to understand the whole agreement covering goods, services and other trade issues.
Understanding Origin & Preference
What is the difference between origin and preferential origin? This interactive workshop explains this by using case studies and exercises to help the learner understand when they are important in both export and import scenarios. It examines the documents and statements used to declare origin and preference and how to verify if your goods meet preference rules across different trade agreements. With HMRC audits increasing, you and the business need to be comfortable with this complex area.
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