It’s a tale as old as Free Trade Agreements - you’re importing goods under preference, your supplier gives you an invoice statement, everyone’s happy – until HMRC comes knocking.  Recently, an importer found itself facing a duty bill, despite having claimed preference. Why? Because the preference statement wasn’t exactly correct. Not wildly off, just... not replicated word for word in line with the FTA, which was mainly the UK-EU Trade Cooperation Agreement (TCA). 

Now, at Strong & Herd LLP, we’ve said it time and again – and we’ll keep saying it until it’s printed on mugs and mouse mats: the preference statement must be used word for word.  No freestyling.  No “close enough.” It’s not karaoke – you don’t get points for improvisation.  And suppose you’re the importer claiming preference. In that case, you are responsible for verifying that the statement is accurate and complete (even if it isn’t printed in English), and that the REX number or other exporter approval number is valid. 

In this case, HMRC took issue with more than just the wording and zoomed in on two particular points: 

1. The REX number was wrong – instead of just “IEREX” for Ireland, for example, the statement read “IE! Only.  A small typo? Sure. But in the eyes of HMRC, it is enough to void the claim. 
2. The statement of origin doesn’t correspond to the trade agreement being used – the statement said, “German preferential origin” instead of the required “EU preferential origin.” Again, not a massive leap, but still incorrect according to the FTA. 



The rules are the rules. But let’s be honest – it probably seems harsh and pedantic to a lot of UK businesses. When you’re trying to do things right and get tripped up by a missing word or a rogue country name, it feels like being penalised for spelling mistakes on a driving test.  So, what can we learn from this? 

Double-check the preference statement. It must match the wording in the agreement exactly. Word. For. Word. 

Check the REX or approved exporter number. Is it valid? Is it formatted correctly? “IEREX” might sound like an airline, but it won’t fly with Customs. 

The preference origin must confirm EU preference, not just the specific member state. Even if you know it originated from Germany, if the statement doesn’t specify “EU,” it’s incorrect and should not be used to claim preferential treatment.  And one more thing: keep your documentation ready and available at the time of import. This proactive approach can prevent potential issues. 

This case serves as a sharp reminder that when it comes to preference claims, the devil is truly in the details. And HMRC, with their meticulous scrutiny, have the magnifying glasses.