How to claim preferences under the Developing Countries Trading Scheme (DCTS)
This guidance outlines the requirements for claiming preferential tariffs under the Developing Countries Trading Scheme (DCTS).
1. How to establish proof of origin as an exporter
Proof of origin
Exporters in countries covered under the DCTS or a trade agreement with the UK must prove the origin of their goods. To prove origin, you must:
- confirm that you can claim preferences for the goods imported into the UK
- give the person receiving the goods evidence of origin so that they can claim preferences
However, you may not need to prove origin if the trade agreement permits it and if you also sent the goods in a small consignment.
Types of proof of origin
There are 2 types of proof of origin, including:
- an origin declaration
- Form A: this can be a template instead of an invoice or commercial document. The UK does not require it to be stamped by the exporting customs authority.
You can read the guidance on understanding proof of origin for more information about these types.
The type of proof of origin you need depends on:
- the types of goods
- where the goods are imported from
Validity of proof of origin
A proof of origin, once made, will remain valid for the length of time stated in the trade agreement between the exporting country and the UK.
Supporting evidence
If the UK government carries out a verification of your proof of origin claim, you will need supporting evidence in the form of:
- production records: exporters must keep production records for 3 years
- invoices
- accounting details
- suppliers’ declarations
Documents to prove compliance with the rules of origin
Countries covered under the Developing Countries Trading Scheme (DCTS) must provide documents showing that goods meet the rules of origin requirements under the DCTS.
These may include documents relating to:
- the processes carried out to produce the goods of the components or materials used in their production
- the purchase, cost, value and payment of the product, or the components or materials used in their production
- the originating status of the goods and components or materials
- evidence to determine the regional value content of the product, where applicable
2. How to make an origin declaration as an exporter
Origin declaration
An origin declaration is also known as an ‘invoice declaration’ or ‘statement of origin’. It is a statement declaring where a product originates from or was manufactured.
As an exporter from a DCTS country, you must make an origin declaration for any consignment. You must fulfil 2 conditions when creating an origin declaration:
- maintain appropriate commercial accounting records for the production and supply of goods that qualify for preferential tariff treatment
- provide the customs authority of the exporting country with supporting documents or written statements from producers demonstrating the origin of the goods
You can make an origin declaration on a commercial document with enough detail to identify the origin of the goods. Examples of these commercial documents include an invoice, a packing list, or a delivery note.
An origin declaration must contain these essential elements:
- exporter’s name and business address
- date of direct shipment to the UK
- other references, for example, purchase order number
- consignee’s name and business
- purchaser’s name and address (if not the consignee)
- country of transhipment
- country of origin of the goods. If the shipment includes goods of different origins, enter details against data element on specification of commodities
- transportation details
- terms of sale
- currency
- number of packages
- specification of commodities
- quantity
- unit price
- total price
- net weight
- gross weight
- invoice total
An origin declaration is valid for 2 years after the exporter provided it. You may present it to HM Revenue & Customs (HMRC) within these 2 years.
Origin declarations submitted after 2 years may be accepted if they were not presented earlier due to exceptional circumstances.
You can read the guidance on origin declaration.
3. How to claim preferential tariffs for importers
Importers must claim preferential tariffs using an origin declaration or Form A.
As an importer, you must include all claims for preferential tariffs in the customs import declaration.
If you did not claim preferential tariffs at the time of importing, HMRC might grant preferential tariff treatment if:
- you claim preferential tariffs no later than 2 years after the date of importation
- you provide a valid origin declaration
- the goods originate from a DCTS country
- you would have met all the requirements for a preferential claim at the time of importation
HMRC will repay and remit any excess customs duty paid if you fulfil these conditions.
You can read the Customs (origin of chargeable goods trade preferences scheme) (EU exit) regulations for more information.
4. Identifying the relevant customs forms for importing into the UK
There are 5 categories of customs forms needed to import goods into the UK:
- guarantee, payment and deferment forms to interact with HMRC
- import and export authorisation and approval forms for requests to HMRC
- clearance of goods forms to request this for goods imported into the UK
- declaration forms for imports and exports for goods entering the UK
- customs Declaration Service forms and guidance with HMRC
These forms are all available on the forms for import and export page.
5. Evidential requirements for cumulation
There are certain documents required to establish cumulation under the DCTS, including:
Type of cumulation | Documents required | |||
---|---|---|---|---|
Bilateral cumulation | An origin declaration provided by the UK exporter | |||
Bilateral cumulation with the European Union, Norway, Switzerland or British Overseas | Proof of origin provided by the exporter, issued in line with the relevant rules of origin | |||
Inter/Intra-Regional cumulation | Evidence confirming the cumulated materials meet the DCTS rules of origin | |||
Extended cumulation for Least Developed Countries (LDCs) | Proof of origin provided by an exporter in the country with which the UK has a trade arrangement, issued in line with the relevant agreement; or evidence that the goods are duty-free and quota-free if imported from the partner country |
This guidance is also available as a PDF:
Updates to this page
Last updated 17 August 2023 + show all updates
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Removed importers knowledge from the list of types of proof of origin.
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First published.