The Customs (Origin of Chargeable Goods: Trade Preference Scheme) (EU Exit) Regulations 2020

Intra-regional cumulation: beneficiary countries in the same regional group U.K.

16.—(1) A beneficiary country (in this paragraph, “the cumulating GSP country”) may regard qualifying goods which under regulation 3 are to be regarded as originating from another beneficiary country in the same regional group as goods originating from the cumulating GSP country if—

(a) the materials used in the goods are further processed in, or incorporated into, goods manufactured in the cumulating GSP country;

(b) the materials used in the goods are not excluded under paragraph (3); and

(c) the conditions set out in paragraph (4) are met.

(2) For the purposes of paragraph (1), goods exported from one beneficiary country to another for the purpose of intra-regional cumulation are to be regarded as originating from the last beneficiary country in which substantial processing of the goods has taken place, determined on the basis of the condition specified in the table in Part 2 of Schedule 1 that would apply if the goods were being exported to the United Kingdom.

(3) The materials listed in the second column of the table in Schedule 2 are to be excluded from intra-regional cumulation within a regional group marked “X” in the corresponding entry in the third or fourth column, or, as the case may be, in each of those columns, of that table if—

(a) the GSP rate applicable in the United Kingdom under Part 6 of the TPS Regulations is not the same for all the countries or territories concerned, and

(b) the materials concerned would benefit, through intra-regional cumulation, from a tariff treatment more favourable than the one from which they would benefit if directly exported to the United Kingdom.

(4) The conditions mentioned in paragraph (1)(c) are that—

(a) each beneficiary country must comply with the conditions relating to customs cooperation and verification of proof of origin provided for by regulation 20 of the TPS Regulations;

(b) the processing carried out in the beneficiary country where the materials are further processed or incorporated must go beyond the processing described in regulation 7(2); and

(c) in the case of textile goods, in addition to meeting the condition set out in sub-paragraph (b), the processing carried out in the beneficiary country where the materials are further processed must go beyond one or more of the following—

(i) fitting of buttons or other types of fastenings;

(ii) making of button-holes;

(iii) finishing off the ends of trouser legs and sleeves or the bottom hemming of skirts and dresses and other apparel;

(iv) hemming of handkerchiefs, table linen and other textile articles;

(v) fitting of trimmings and accessories including pockets, labels and badges;

(vi) ironing and other preparations of garments for sale ready-made.

(5) Where the condition set out in paragraph (4)(b) is not met or, in the case of textile goods, where the conditions set out in paragraph (4)(b) and (c) are not met, the goods are to be regarded as originating from the beneficiary country participating in the intra-regional cumulation from which the largest share of the value of the materials used in the manufacture of the final goods originates.

(6) For the purposes of intra-regional cumulation, these Regulations apply to exports from one beneficiary country to another.

(7) In this regulation—

“intra-regional cumulation” refers to the system whereby a beneficiary country (“C”) may regard qualifying goods from another beneficiary country in the same regional group as goods originating from C in the circumstances described in paragraph (1);

“GSP rate” has the meaning given in regulation 2(1) of the TPS Regulations.

Commencement Information

I1 Reg. 16 not in force at made date, see reg. 1

I2 Reg. 16 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.