Why am I still paying import duties despite the Brexit deal?

You do not pay import duties on trade between the EU and the UK if your product meets the preferential origin rule and you can prove this with the right papers. If you cannot do so, you will still have to pay import duties. In this article, you can read about import duties between the EU and the UK, and how to avoid paying them.

Are there import duties between the EU and the UK?

Yes. This is because the UK is not an EU member state. That is why you pay import duties on trade between the EU and the UK. However, both parties have set out arrangements on this in a Trade and Cooperation Agreement. This states, for example, that products of preferential origin are exempt from import duties. You can check the preferential rules of origin to see whether your product meets the requirements.

Preferential origin

Preferential origin shows the country where a product was made, grown, extracted, or caught. A product gets preferential origin if it was made fully in that country or if it went through enough work there, as the preferential rules of origin say.

Specific rules apply to each product. These rules depend on the product’s commodity code.

Product resold via the UK only

Does the product originally come from a country outside the UK and the EU? And does your UK supplier resell it to you? If so, this product does not automatically qualify for UK preferential origin status.

Example

You import coats from the UK. The coats are made in China. Your UK supplier sends them to you. They have not undergone any further processing in the UK. The coats do not have UK preferential origin status and remain of Chinese origin. You will therefore have to pay import duties as normal.

This also applies if you import products yourself from countries outside the EU and export them to your UK customer. In that case too, the product will not be granted EU preferential origin status.

Avoid import duties when you import from the UK

The EU levies import duties on many products. However, some products are exempt from these. You should therefore first find out exactly what you will be paying. To do this, use the Dutch Customs Tariff database. If import duties apply to your product, ask your UK supplier for a Certificate of Origin. This is an invoice declaration with which your supplier proves the product’s preferential UK origin. Please note the following points:

1. Does the product meet the criteria for UK preferential origin?
   Ask your UK supplier whether the product is of UK preferential origin. The rules for this are set out in the Trade and Cooperation Agreement between the EU and the UK. You can also use the ROSA tool from Access2Markets.
2. Is your supplier using the standard text?
   The Certificate of Origin must contain standard text. Your supplier must not deviate from this. You can find the correct text in the sample texts for invoice declarations.
3. Does your supplier state the UK EORI number?
   The Certificate of Origin must include your UK supplier’s EORI number. You can check this number on the UK government website.

Make sure your UK customer does not pay import duties

Some products are exempt from import duties in the UK. First, find out whether there are any import duties on your product. You can check this in Access2Markets’ My Trade Assistant. Does your customer pay import duties in the UK? If so, you can use a Certificate of Origin to prove your product’s preferential EU origin. Keep these 3 points in mind:

1. Is your product of preferential EU origin?
   Check whether your product meets the preferential rules of origin. Look up the rules of origin your product must meet in the EU–UK Trade and Cooperation Agreement. Use your product’s commodity code for this. You can also use the ROSA tool from Access2Markets.
2. Are you using the standard text for the Certificate of Origin?
   If you add the Certificate of Origin to your invoice, you must use the standard text. You can find the text for the UK in the sample texts for invoice declarations.
3. Do you have a REX registration?
   If the value of your shipment is more than €6,000, you must be a Registered Exporter (REX). You apply for REX with the Customs Administration of the Netherlands. They will give you a registration number that you must put in the Certificate of Origin. If the value of your shipment is less than €6,000, you do not need REX and may use the Certificate of Origin without this number.

How to avoid double import duties

Find out what the deals between the UK and the EU mean for import duties, the transport of your goods, and logistics. With a list of all extra costs and admin tasks, you will know what choices are open to you.

For example, do you have clothing delivered from China? In that case, it may be cheaper to have the order sent directly to the UK, without declaring the clothing for import to the Customs Administration of the Netherlands. This way, you avoid paying double import duties.