Claiming Preference & Tariff Rate Quotas

Preferential origin allows eligible goods to benefit from reduced or zero customs duty when imported from countries that have a Free Trade Agreement (FTA) with the UK. To qualify goods must meet specific origin rules agreed between the UK and the exporting country.

To determine whether your goods qualify, you need to check the rules of origin within the relevant Free Trade Agreement. These rules can vary depending on commodity code, the country of export and the type of goods being imported. You can also check the applicable origin requirements by checking the UK Trade Tariff, which provides details of the rules of origin that apply to different goods and trade agreements.

Goods may qualify if they are;

• Wholly obtained in the exporting country (for example, agricultural products grown or harvested there)
• Sufficiently processed or manufactured in that country according to the agreement’s product-specific rules.

The supplier should be able to confirm whether the goods meet the origin requirements and provide supporting information if needed.

A statement on origin, also referred to as a preference statement or origin declaration, is a declaration made by an exporter confirming that goods meet the preferential rules of origin requirements under the relevant Free Trade Agreement.

The statement allows the importer to claim preferential duty rates when completing their customs declaration. The required wording, format, and whether an exporter authorisation number is needed depends on the Free Trade Agreement being used.

To claim a preferential rate of customs duty under a UK Free Trade Agreement or preference scheme, importers must be able to demonstrate that the goods meet the relevant rules of origin. The country of origin is not always the same as the country from which the goods are shipped, so these should not be confused.

The type of proof required depends on the trade agreement or preference scheme being used.

Common forms of proof include:

• A Statement on Origin (sometimes referred to as an origin declaration)
• Importer's Knowledge
• A movement certificate (such as an EUR1), where permitted by the relevant agreement
• Other origin evidence specified within the applicable trade agreement.

Importers should always check the specific rules of the relevant UK trade agreement, as the acceptable proof of origin, wording requirements and supporting evidence differ between agreements.

A Free Trade Agreement doesn’t automatically mean all goods imported from that country will be duty-free

To benefit from preferential rates:

• The goods must meet the agreement’s rules of origin
• Valid proof of origin must be available
• A valid preference claim must be made on the customs declaration

It's important to remember that the country the goods are shipped from does not necessarily determine whether they qualify for preferential origin. For example, fish products processed or packed in the EU may not qualify for EU preferential origin if the raw materials used do not meet the agreement's origin requirements.

If the goods do not qualify for preferential origin or the required evidence is unavailable, standard third-country duty may apply.

The importer is responsible for ensuring that a preference claim made on their customs declaration is valid. This includes ensuring that the goods qualify for preferential origin and that the required supporting evidence is available.

If a preference claim is found to be incorrect, HMRC may seek to recover any unpaid duty and, depending on the circumstances, additional charges or penalties may apply.

Importers should therefore regularly review their customs declarations and preference claims to ensure they remain accurate. If an incorrect claim is identified, it's important to notify HMRC and correct the error by submitting a duty underpayment. Taking action voluntarily is preferable to HMRC identifying errors during an audit or compliance check.

Yes you can, but you must abide by the direct transport rule.The direct transport rule requires goods claiming preferential origin under a trade agreement to be transported directly from the exporting country to the importing country. The purpose is to ensure the goods remain the same originating products throughout the journey.

Goods can usually pass through or be temporarily stored in a third country, provided they:

• Remain under customs control.
• Are not released into free circulation there.
• Undergo no processing other than unloading, reloading, splitting consignments, or operations necessary to preserve their condition.

How it works in practise: Goods originating in Morocco are shipped to Great Britain via France. The goods can still qualify for Moroccan preference in GB if they remain under customs control in France and are not altered or processed there.

The exact requirements vary by trade agreement, but the principle is to prevent non-originating goods from being substituted or modified during transit.

A Tariff Rate Quota (TRQ) is a customs measure that allows a set quantity of a specified product to be imported at a reduced or zero rate of customs duty. Once the quota has been exhausted any further imports of the same product are subject to the standard rate of duty until the quota renews.

Eligibility for a tariff quota depends on factors such as

• The commodity code used
• The country of origin
• The specific quota conditions
• Whether any additional requirements are met.

Not all goods are covered by tariff quotas; you can check the products covered by quotas here: UK tariff rate quotas 2026

When a tariff quota is exhausted, the reduced or zero duty rate is no longer available for further imports under that quota. Imports of those goods may then be subject to the standard customs duty rate unless another relief or preference arrangement applies.

Some quotas are renewed periodically, meaning the reduced or zero duty rate may become available again once the quota is re-opened or a new quota period begins. Importers can check the UK Trade Tariff for the current available quotas, their status, and any applicable conditions before importing.

Most quotas are allocated on a first-come, first-served basis, meaning valid claims are processed in the order they are accepted until the available quantity has been used.

Some agricultural quotas are managed through an import licensing system instead. You can check how a specific quota is managed, along with any licence or documentary requirements, on the UK Trade Tariff before importing.

Once you've identified a tariff quota that applies to your goods, you can check the current quota balance by using the 'Search for quotas' function within the UK Trade Tariff. This lets you view the current available balance, quota period, any applicable conditions, and any required supporting documentation.

Because quota availability can change throughout the day as claims are processed, it's worth checking before you import your goods. If the quota has been exhausted, the standard customs duty rate may apply instead.