Guidance

Notes on applying the origin rules

Published 19 June 2023

This document is a general guide that explains the rules of origin, you should always refer to the legislation which takes priority over this content. Check the legislation:

• Customs, VAT and Excise UK transition legislation from 1 January 2021
• The Customs (Origin of Chargeable Goods: Developing Countries Trading Scheme) Regulations 2023
• Notices made under the Customs (Origin of Chargeable Goods: Developing Countries Trading Scheme) Regulations 2023

Developing Countries Trading Scheme origin rules and their corresponding notes

Introductory notes

Note 1 — The structure of the product specific rule lists

1.1. Where the entry is prefixed by ‘ex’, the condition applies only to the part of that Chapter, heading or sub-heading as described in the table.

1.2. Where several headings or sub-headings are grouped together, or a Chapter number is given and the description of a product is therefore given in general terms, the corresponding condition applies to all products which are classified in headings of the Chapter or in any of the headings or sub-headings grouped together in the table.

1.3. Where there are different conditions in the table applying to different products within a heading, each row contains the description of that part of the heading covered by the corresponding condition in the table.

1.4. The conditions for Least Developed Countries and all other qualifying Developing Countries Trading Scheme countries are set out in tables with the exception of Chapters 1 and 2. The conditions applicable to all other qualifying Developing Countries Trading Scheme countries are also applicable to exports from the British Islands, a British overseas territory, the EU, Norway or Switzerland to a qualifying Developing Countries Trading Scheme country for the purposes of bilateral cumulation under regulation 17 of The Customs (Origin of Chargeable Goods Developing Countries Trading Scheme) Regulations 2023.

1.5. Where a condition specifies that a product must be manufactured from a particular material, the condition does not prevent the use also of other materials which, because of their inherent nature, cannot meet the condition.

Note 2 — General provisions concerning certain agricultural goods

2.1. Agricultural goods falling within Chapters 6, 7, 8, 9, 10, 12 and heading 2401 which are grown or harvested in a qualifying Developing Countries Trading Scheme country are to be treated as originating from that country, even if grown from seeds, bulbs, rootstock, cuttings, grafts, shoots, buds, or other live parts of plants imported from another country or territory.

2.2. In cases where the content of non-originating material in a good is sugar and is subject to limitations, the weight of sugars of headings 1701 and 1702 used in the manufacture of the final good and used in the manufacture of the non-originating materials incorporated in the final good is taken into account for the calculation of such limitations.

Note 3 — Terminology used in respect of certain textile goods

3.1. The term ‘natural fibres’ as used in the tables refers to fibres other than artificial or synthetic fibres. It is restricted to the stages before spinning takes place, including waste, and, unless otherwise specified, includes fibres which have been carded, combed or otherwise processed but which have not been spun. The term includes horsehair of heading 0511, silk of headings 5002 and 5003, wool-fibres and fine or coarse animal hair of headings 5101 to 5105, cotton fibres of headings 5201 to 5203 and other vegetable fibres of headings 5301 to 5305.

3.2. The terms ‘textile pulp’, ‘chemical materials’ and ‘paper-making materials’ as used in the tables describe the materials not classified in Chapters 50 to 63 which can be used to manufacture artificial, synthetic or paper fibres or yarns.

3.3. The term ‘man-made staple fibres’ as used in the tables refers to synthetic or artificial filament tow, staple fibres or waste, of headings 5501 to 5507.

Note 4 — Tolerances applicable to goods made of a mixture of textile materials

4.1. Where, in relation to a product, reference is made to this note, the conditions are not required to be applied to any basic textile materials used in the manufacture of the good and which, taken together, represent 10% or less of the total weight of all the basic textile materials used (see also Notes 4.3 and 4.4).

4.2. However, the tolerance mentioned in Note 4.1 may be applied only to mixed goods which have been made from two or more basic textile materials. The following are the basic textile materials:

• silk
• wool
• coarse animal hair
• fine animal hair
• horsehair
• cotton
• paper-making materials and paper
• flax
• true hemp
• jute and other textile bast fibres
• sisal and other textile fibres of the genus Agave
• coconut, abaca, ramie, and other vegetable textile fibres
• synthetic man-made filaments
• artificial man-made filaments
• current-conducting filaments
• synthetic man-made staple fibres of polypropylene
• synthetic man-made staple fibres of polyester
• synthetic man-made staple fibres of polyamide
• synthetic man-made staple fibres of polyacrylonitrile
• synthetic man-made staple fibres of polyimide
• synthetic man-made staple fibres of polytetrafluoroethylene
• synthetic man-made staple fibres of poly(phenylene sulphide)
• synthetic man-made staple fibres of poly(vinyl chloride)
• other synthetic man-made staple fibres
• artificial man-made staple fibres of viscose
• other artificial man-made staple fibres
• yarn made of polyurethane segmented with flexible segments of polyether, whether or not gimped
• yarn made of polyurethane segmented with flexible segments of polyester, whether or not gimped
• goods of heading 5605 incorporating strip consisting of a core of aluminium foil or of a core of plastic film whether or not coated with aluminium powder, of a width not exceeding 5 mm, sandwiched by means of a transparent or coloured adhesive between two layers of plastic film
• other goods of heading 5605
• glass fibres
• metal fibres

Example of a mixed yarn

A yarn, of heading 5205, made from cotton fibres of heading 5203 and synthetic staple fibres of heading 5506, is a mixed yarn. Therefore, non-originating materials which are synthetic staple fibres which do not satisfy the conditions may be used, provided that their total weight does not exceed 10% of the weight of the yarn.

Example of a mixed fabric

A woollen fabric, of heading 5112, made from woollen yarn of heading 5107 and synthetic yarn of staple fibres of heading 5509, is a mixed fabric. Therefore, synthetic yarn which does not satisfy the conditions, or woollen yarn which does not satisfy the conditions, or a combination of the two, may be used, provided that their total weight does not exceed 10% of the weight of the fabric.

4.3. In the case of products incorporating ‘yarn made of polyurethane segmented with flexible segments of polyether, whether or not gimped’, the tolerance is 20% in respect of this yarn.

4.4. In the case of products incorporating ‘strip consisting of a core of aluminium foil or of a core of plastic film whether or not coated with aluminium powder, of a width not exceeding 5 mm, sandwiched by means of a transparent or coloured adhesive between two layers of plastic film’, the tolerance is 30% in respect of this strip.

Note 5 — Other tolerances applicable to certain textile goods

5.1. Where, in the product specific rules lists, reference is made to this note, textile materials which do not satisfy the condition set out in the table for the made-up product concerned, may be used, provided that they are classified in a heading other than that of the good and that their value does not exceed 8% of the ex-works price of the good.

5.2. Without prejudice to Note 5.3, materials which are not classified within Chapters 50 to 63 may be used freely in the manufacture of textile goods, whether or not they contain textiles.

Example of textile items

If a condition provides that, for a particular textile item (such as trousers), yarn must be used, this does not prevent the use of metal items, such as buttons, because buttons are not classified within Chapters 50 to 63. For the same reason, it does not prevent the use of slide-fasteners, even though slide-fasteners normally contain textiles.

5.3. Where a percentage-rule applies, the value of non-originating materials which are not classified within Chapters 50 to 63 must be taken into account when calculating the value of the non-originating materials incorporated.

Note 6 — Definitions of specific processes and simple operations carried out in respect of certain goods of Chapter 27

6.1. For the purposes of headings ex 2707 and 2713, the ‘specific processes’ are the following:

• vacuum-distillation
• redistillation by a very thorough fractionation-process
• cracking
• reforming
• extraction by means of selective solvents
• the process comprising all of the following operations: processing with concentrated sulphuric acid, oleum or sulphuric anhydride; neutralisation with alkaline agents; decolourisation and purification with naturally-active earth, activated earth, activated charcoal or bauxite
• polymerisation
• alkylation
• isomerisation

6.2. For the purposes of headings 2710, 2711 and 2712, the ‘specific processes’ are the following:

• vacuum-distillation
• redistillation by a very thorough fractionation-process
• cracking
• reforming
• extraction by means of selective solvents
• the process comprising all of the following operations: processing with concentrated sulphuric acid, oleum or sulphuric anhydride; neutralisation with alkaline agents; decolourisation and purification with naturally-active earth, activated earth, activated charcoal or bauxite
• polymerisation
• alkylation
• isomerisation
• in respect of heavy oils of heading 2710 only, desulphurisation with hydrogen, resulting in a reduction of at least 85% of the sulphur-content of the goods processed (ASTM D 1266-59 T method ^{[footnote 1]}
• in respect of goods of heading 2710 only, deparaffining by a process other than filtering
• in respect of heavy oils of heading 2710 only, treatment with hydrogen, at a pressure of more than 20 bar and a temperature of more than 250°C, with the use of a catalyst, other than to effect desulphurisation, when the hydrogen constitutes an active element in a chemical reaction — however, the further treatment, with hydrogen, of lubricating oils of heading 2710 (for example, hydrofinishing or decolourisation), in order, more especially, to improve colour or stability is not to be deemed to be a specific process
• in respect of fuel oils of heading 2710 only, atmospheric distillation, on condition that less than 30% of these goods distils, by volume, including losses, at 300 °C, by the ASTM D 86 method ^{[footnote 1]}
• in respect of heavy oils other than gas oils and fuel oils of heading 2710 only, treatment by means of a high-frequency electrical brush-discharge
• in respect of crude products (other than petroleum jelly, ozokerite, lignite wax or peat wax, paraffin wax containing by weight less than 0.75% of oil) of heading 2712 only, de-oiling by fractional crystallisation.

6.3. For the purposes of headings ex 2707 and 2713, simple operations, such as cleaning, decanting, desalting, water-separation, filtering, colouring, marking, obtaining a sulphur-content as a result of mixing products with different sulphur-contents, or any combination of these operations or like operations, do not constitute an important stage of manufacture.

1. A copy can be obtained from the American Society for Testing and Materials (ASTM), 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA, 19428-2959, U.S.A. (email: service@astm.org and website: www.astm.org/contact). A hard copy is available for inspection free of charge at the offices of HMRC at 100 Parliament Street, London SW1A 2BQ. ↩ ↩²