Clarification on payment of tariffs for product exported to the EU under scope of the Trade Agreement
We have now received clarification from Defra with regards to circumstances in which products exported to the EU under scope of the TCA might still be eligible for tariffs.
Product eligible for export under the organic requirements of the TCA may still be eligible for payment of tariffs because of the requirements of the Rules of Origin. The definitions of processed product in regards organic legislation, (referenced in Annex 14 of the TCA) are different from the Rules of Origin, meaning your certifier could endorse a COI for export to the EU and the COI would be accepted at the border control post, but payment of a tariff would be required before the goods could be released.
Rules of Origin are governed by product specific rules (PSRs) and General Provisions, which determine the level of processing a product needs to undertake in order to be classed as originating under the free trade agreement. If a product does meet the relevant product specific rules (PSR) – it will not be eligible for preferential treatment via the TCA, and the applicable tariff will be due.