Understanding Statements on Origin

How to Ensure Your Business Does Not Overpay Customs Duties

Many businesses involved in international trade unknowingly overpay customs duties on imported goods. In some cases, these overpayments can amount to hundreds or even thousands of euros each month.

A common issue affects businesses importing goods from the UK into the European Union. Importers may assume that goods of UK origin automatically qualify for duty-free treatment under the EU-UK Trade and Cooperation Agreement. However, customs authorities will only grant preferential tariff treatment when the exporter provides the correct Statement on Origin on the commercial invoice.

Even when products genuinely originate in the UK, failure to include the required declaration can result in customs duties being incorrectly charged. This omission may be due to an administrative oversight or a lack of awareness on the exporter's part, but the financial impact for the importer can be significant.

Because duty payments are often automatically deducted from a trader's TAN account or included within invoices issued by freight forwarders and customs agents, these charges can go unnoticed. Many businesses trust that customs clearances have been completed correctly and may not identify the issue until an internal review or audit is conducted.

Once discovered, correcting historical entries can involve substantial administrative work. Import records, invoices, and customs declarations may need to be reviewed to determine which entries qualify for preferential treatment. Fortunately, customs regulations generally allow traders to submit retrospective claims and supporting documentation for eligible imports, often for up to three years after the original import date.

How BlueportAP Can Help

BlueportAP can assist businesses by:

• Auditing historical customs entries to identify potential duty overpayments.

• Reviewing import documentation for compliance with preferential origin requirements.

• Supporting applications to recover overpaid customs duties.

• Working with customs agents and authorities to resolve discrepancies.

• Implementing processes to ensure future shipments remain fully compliant and benefit from all available duty reliefs.

By ensuring the correct origin documentation is provided before goods are imported, businesses can avoid unnecessary costs, improve compliance, and protect their margins.

Example of the Required Declaration

A typical Statement on Origin may include wording similar to:

"The exporter of the products covered by this document declares that, except where otherwise clearly indicated, these products are of UK preferential origin."

This seemingly small statement can be the difference between paying customs duty and receiving duty-free treatment on qualifying goods.

While the Statement of Origin may appear to be a minor administrative detail, its impact on landed costs can be significant. Businesses that understand and manage preferential origin requirements effectively are better positioned to reduce costs, maintain compliance, and protect margins across international supply chains.