A number of common checks should be initiated to ensure the validity and accuracy of SADs. One of the most important checks is related to origin.
The country of origin is relevant when determining the rate of duty applicable on goods originating from a particular country. Incorrect declaration of the country of origin can result in false claims for preferential rates of duty / avoidance of restrictions / avoidance of the application of anti-dumping duty.
GB / UK origin is only applicable to goods that are being dispatched from the UK, that have been manufactured or modified substantially in order to change their origin. For example, a Japanese car being painted in the UK, won’t be able to claim preference because a substantial transformation has not taken place. However if it was an engine that was imported and fitted to a UK vehicle, then preferential origin would be applied to the vehicle as a whole under bilateral accumulation. It is important that the invoice or an accompanying document includes the following statement:
(Period: from___________ to __________ (1)) The exporter of the products covered by this document (Exporter Reference No ... (2)) declares that, except where otherwise clearly indicated, these products are of ...... (3) preferential origin. ……….....… (4) (Place and date)………........ (Name of the exporter)
Code U116 should be used when the above statement is included. U117 should be used in the case of importers knowledge. It is important to note that you must have proof to back up your origin claim or duty may be applicable.
