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

Inter-regional cumulation: beneficiary countries in different regional groups

17.—(1) A beneficiary country (in this regulation, “the cumulating GSP country”) may regard qualifying goods which under regulation 5 are to be regarded as originating from a beneficiary country in another 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 conditions set out in paragraph (2) are met; and

(c) the Secretary of State has published a notice under paragraph (3).

(2) The conditions mentioned in paragraph (1)(b) 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);

(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 or incorporated 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;

(d) the cumulating GSP country must have submitted a written request for the purpose, and provided evidence, to the Secretary of State of trade benefits of allowing the inter-regional cumulation; and

(e) the Secretary of State, after taking that evidence into account, is satisfied that there would be trade benefits in allowing the inter-regional cumulation.

(3) The Secretary of State may publish a notice specifying—

(a) the beneficiary countries and goods in respect of which paragraph (1) applies;

(b) the date from which the inter-regional cumulation may take effect; and

(c) if the Secretary of State considers it appropriate, the materials in respect of which the inter-regional cumulation may apply.

(4) Where the condition set out in paragraph (2)(b) is not met or, in the case of textile goods, where the conditions set out in paragraph (2)(b) and (c) are not met, the goods are to be regarded as originating from the beneficiary country participating in the inter-regional cumulation from which the largest share of the value of the materials used in the manufacture or the final goods originates.

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

(6) In this regulation, “inter-regional cumulation” refers to the system whereby a beneficiary country (“C”) in a regional group may regard qualifying goods originating from a beneficiary country in another regional group as goods originating from C in the circumstances described in paragraph (1).