For more detail on the criteria for classification as a UK or EU vessel see Question 19 or refer to Defra’s Rules of Origin guidance.
b. Bilateral Cumulation: Materials originating from the EU, as well as production carried out within the EU on non-originating materials, may be considered as also originating in the UK (and vice versa). This mechanism is known as bilateral cumulation.
You can only have bilateral cumulation where seafood originating in the EU undergoes production in the UK (and vice versa). See Questions 8-10 for an explanation of what ‘production’ would entail.
c. Meet specific production requirements: The seafood has undergone production as specified in the Product Specific Rules (PSRs) below. PSRs support certain types of production to satisfy the RoO requirement. These rules can confer a change of origin to EU, UK or in some cases seafood from other countries, to that of the country of production In the Seafood PSRs, the conditions needed for seafood to be originating are:
1) For Chapter 3 products (i.e. goods classified under customs commodity code 03), all the Chapter 3 materials used in producing them must be wholly obtained as explained under (a) above.
2) For seafood products with commodity codes from 160411 to 160418, all the materials of Chapters 1, 2, 3 and 16 used in producing these products must be wholly obtained.
For seafood products with commodity codes starting with 160419, non-originating (i.e. non-UK, non-EU) materials other than non-originating Chapter 16 materials may be used in their production.
3) For surimi that has a commodity code starting with 160420, non-originating (i.e. non-UK, non-EU) materials other than non-originating Chapter 16 materials may be used in their production.
4) For all other products with commodity codes from 160420 to 160569, all the materials of Chapters 3 and 16 used in producing them must be wholly obtained.
For the above PSR rules to apply, the production that takes place must go beyond ‘insufficient production’ (Further detail on ‘insufficient production’ (i.e. processing) is given in Question 10).
Once a product has gained originating status, it is considered 100% originating. This means that if that product is incorporated in the production of a further product, its full value is considered originating and no account is taken of non-originating materials within it.
5. Are small amounts of non-originating material allowed?
Yes. A final product is still considered UK originating even if non-originating ingredients are used, up to a limit of 10% of the value (ex-works price). Non-originating ingredients can include fish or non-fish material.
6. Does the TCA apply to European Economic Area (EEA) countries?
No, the TCA only includes the EU27 countries. EEA countries are considered as third countries. Trade with Norway, Iceland and Liechtenstein can continue under World Trade Organisation (WTO) rules or, where applicable, under the terms of those countries’ trade agreements with the UK.
7. If the UK and the EU have a trade agreement with the same third country e.g. Norway, will material from the third country be considered originating in the UK or EU?
No, the TCA only allows bilateral cumulation using materials originating in the EU and the UK. For example, Norway has trade agreements with the EU and the UK with both parties paying zero or reduced tariffs on Norwegian fish. If fish is imported from Norway for production in the UK it will not automatically become UK originating under the terms of the TCA and tariffs may be incurred when exported to the EU. Similarly, fish imported from Norway into the EU will incur tariffs under the TCA if it is then re-exported to GB. The PSRs can provide limited exceptions (see Question 10 below).
8. What production must fish or shellfish of EU origin undergo to become UK origin to secure zero tariffs when re-exported to the EU?
The TCA does not define the production needed, only that insufficient production is not acceptable. Fish and shellfish that are EU originating need to undergo ‘beyond insufficient production’ in the UK to become UK originating. Note that goods that are not EU or UK originating cannot become EU or UK originating except under the conditions described in Question 9.
We are seeking further clarity on how this will apply to seafood production but general examples of ‘insufficient production’ are:
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Simple wrapping, packing and labelling activities
- simple cutting and portioning
simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards and all other simple packaging operations
- affixing or printing marks, labels, logos and other like distinguishing signs on products or their packaging
- simple mixing of products. This can be the same product or different types of product.
- simple addition of water or dilution with water or another substance that does not materially alter the characteristics of the product, or dehydration or denaturation of products
‘Simple’ refers to operations that do not require specialist skills, machines, apparatus, or equipment specifically produced or installed to carry out those operations.
9. Can non-EU/UK seafood be processed in the UK to become UK origin for re-export to the EU with zero tariffs?
There are two instances where the production process converts non-originating product into UK originating product which means it can be exported to the EU tariff free:
Non-EU, non-UK materials are used to produce a product that is classified as 160419 in the customs classification. This would include, for example, coated frozen fish. For example, Norwegian fish block processed in the UK into frozen breaded pieces with commodity code 160419 will acquire UK origin. Similarly, Russian fish block processed in Germany into fish fingers with commodity code 160419 acquires German origin and can be imported into the UK tariff free.
Non-EU and non-UK materials used to produce surimi that is classified under 160420 of the customs classifications will acquire UK or EU origin.
10. Do the non-seafood ingredients in my products also need to be of UK origin?
Non-originating non-seafood ingredients may be allowed in UK-originating products if:
They are allowed under the relevant PSR; or
The value of the added non-originating materials does not exceed 10% of the ex-works price of the product.
I1. If I buy fish in a GB fish market, such as Peterhead or Grimsby for export to the EU, do I need to know the economic origin of the fish?
Yes, you need to be aware of the economic origin of the fish because this determines whether the fish will be subject to duty if the fish is imported into the EU. If the fish is exported without adequate processing i.e. beyond ‘insufficient production’ (see Q9), you will need to ensure the fish you buy is of UK origin to avoid import duties in the EU.
The following categories of fish will not be of UK origin if caught by: (for vessel origin see Q 21)
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EU vessels fishing in EU waters
- EU vessels fishing in international waters
- UK vessels fishing in EU waters
Fish from these vessels can be exported tariff-free if production goes beyond ‘insufficient production’ (see Q9).
Fish bought from third country vessels fishing in international waters will always incur duty on re-export, even with sufficient production, except for production under the product-specific rules (see Q.10). The Table below provides a summary of how this will apply in practice -
Territorial water (out to 12nm) in which the fish was caught Vessel Nationality Fish origin (from columns 1 and 2) Direct landing or import into the UK (tariff Y/N)
Re-export to the EU (tariff Y/N)
UK Any nationality UK N
N*
EU Any nationality EU N*
Y
INT EU EU N* Y
INT UK UK N N*
INT Third country Third country Y Y
*A correct customs declaration may be necessary for the tariff preference to apply.
12. If I buy fish that was originally landed into NI, and then moved to GB under unfettered access, will this attract tariffs if re-exported to the EU?
No. Although fish landed into NI has the benefit of being treated as EU goods for customs purposes, is still ‘UK fish’ so it can be exported to the EU tariff free either from NI directly or via GB.
13. How do I calculate the ex-works price?
The ex-works price is the price of the product paid or payable to the producer responsible for the last working or processing. The price must include the value of all the materials used and all other costs incurred in the production of the product, minus any internal taxes which are, or may be, repaid when the product is exported.
If there is no price paid or payable, or if the price does not reflect the value of the materials and all other costs incurred, you will need to use an alternative method of valuation. You do this by adding together all the costs of the raw materials, all the costs of production, all administrative expenses and profit. Freight, insurance and other costs related to transport do not have to be included.
14. Would non-originating packaging contribute to the ex-works price when checking if non-originating materials exceed the 10% tolerance by value?
Packaging, packing materials and containers can be disregarded when deciding whether or not a product is originating.
15. Does the importer or exporter make the application for preference i.e. zero tariff rates?
The importer will make the claim for preference (i.e. that zero tariffs apply) by completing the relevant part on the customs import declaration. The importer needs to provide proof of origin to prove that the goods qualify as originating and are eligible to claim preference. In the TCA this proof can take the form of:
