Rules of Origin and the Irish dilemma

The new Rules of Origin that came into affect on the 1st January 2021 have been what has caused many issues & problems for our clients, especially those that send goods into Ireland.

The TCA (UK/EU trade agreement) was fairly clear.  If goods are of GB origin & then imported into the EU then no import duties will apply and similarly if goods are of EU origin & being shipped to Great Britain.

The ‘grey’ area which most people appear to be struggling with revolves around Ireland.

So if goods are say of French origin, then exported to Great Britain, stored in a GB warehouse and eventually shipped (unaltered) to Ireland then they are unfortunately NOT eligible for GB preferential (nil) duty.   

Duty is often payable on EU goods arriving into Ireland but not on GB goods – ridiculous we know.

So what is the solution I hear everyone screaming?

Well the Revenue Commissioners have issued an update ‘promoting’ the use of RGR (returned goods duty relief) as a possible solution.

By using Customs Procedure Code (CPC) 6110F01 if the goods were initially a permanent EU export and are now being re-imported or 6123F01 if the initial EU export was temporary. 

Note: ‘returned goods’ does NOT mean ‘returned to sender’ but rather that the goods are being returned to the customs territory that they initially came from (in this scenario the EU).  The goods must be in their original state having not been processed whilst in GB and you only have 3 years currently in which to return goods.

Proof of initial EU export is required.  The MRN number for the export declaration will normally suffice, although additional evidence may be required in some cases. 

To view the full text from the Irish Revenue Commissioners, please click HERE 

We hope that you found this article informative and it helps to resolve any Irish duty issues you might be having right now.

Source: Customs Clearance Consortium