Understanding TCA Rules of Origin for Processed Seafood Imports

Navigating TCA Rules of Origin for Processed Seafood Imports 

When the UK–EU Trade and Cooperation Agreement (TCA) kicked in back in January 2021, it kept the route open for tariff-free trade between the UK and EU. But there’s a catch: you only get that 0% duty if you can prove your goods meet the preferential origin rules. For tinned fish, those rules are a lot tighter than many UK importers realise. 

In the last year, HMRC has been sending out post-clearance duty demands to importers who claimed preference on seafood products that didn’t actually qualify under the TCA’s product-specific rules (PSRs). Some of these bills have been eye-watering and enough to put many smaller firms out of business. These duty demands range from a few hundred pounds to nearly a quarter of a million in some cases. 

Preferential vs. Non-Preferential Origin  

A common misconception is that goods automatically acquire the origin of the country in which they are produced or processed. However, if this were the case, businesses could simply route products through countries with preferential or zero-tariff trade agreements, carry out minimal processing, and then export them duty-free. This is why rules of origin exist, ensuring that a product has undergone sufficient transformation before it can benefit from preferential tariff treatment.

Trade agreements such as the TCA were specifically designed to prevent this type of circumvention, which is why the rules of origin are intentionally robust. For most processed seafood products, preferential tariff treatment is only available where the fish itself is considered wholly obtained in either the UK or the EU. Simply carrying out processing activities in the UK or EU is generally not sufficient to confer originating status if the underlying raw material originates from a third country.

That means sardines (030243) caught in Moroccan waters or anchovies (030242) landed by an Algerian vessel, even if processed and canned in Italy, don’t make the cut. The product can still be classed as Italian origin but of non-preferential Italian origin and you’ll be paying the full duty rate. 

A Substantial Proportion of EU-Processed Fish Isn’t EU-Originating 

A significant proportion of the tinned fish supplied by EU producers originates from waters outside the EU. Italian processors often source tuna from the Indian Ocean, Portuguese canneries regularly use mackerel caught off the coast of West Africa, and Spanish manufacturers commonly prepare anchovies harvested from waters near Morocco. The fact that these products are processed within the EU does not confer preferential origin status under trade agreements, as the origin of the raw fish remains a key determining factor.

It doesn’t matter how much processing takes place in the EU; filleting, smoking, marinating, or canning. If the raw fish doesn’t meet the wholly obtained rule, the finished product won’t qualify under the TCA. 

The TCA Quota For Certain Prepared Or Preserved Fish 

There is, however, a narrow but important exception. The TCA includes an annual quota with relaxed rules of origin for specific processed fish products under HS codes 160414 and 160420. This allows preference to be claimed without meeting the wholly obtained requirement, provided there’s a change in tariff heading during processing (“CC” – change of chapter). 

Where The Quota Can Help 

Tuna caught in the Indian Ocean by a non-EU vessel, landed in Thailand, and shipped to Italy for canning and transform into HS code 160414. If quota space is available, this product can still claim preference because the tariff heading changes during EU processing. 

Where The Quota Won’t Help 

• Sardines, anchovies, mackerel, or any other fish outside HS 160414 and the specific 160420 tuna subheading, they simply aren’t covered.
• Tuna products that don’t change tariff heading during processing, if they’re already classed under 160414 or 160420 before entering the EU then they haven’t changed chapter.  
• “Other prepared or preserved fish” under 160420 that aren’t tuna, skipjack, or other Euthynnus species (e.g., canned salmon).  

When The Quota Runs Out 

Once the annual quota has been exhausted, the relaxed origin provisions cease to apply. At that point, the standard product-specific rules of origin take effect, requiring the product to satisfy the wholly obtained criterion in order to qualify for preferential tariff treatment. Where this requirement is not met, the goods lose eligibility for preference and become subject to the full Most Favoured Nation (MFN) customs duty rate.

Why Supplier Declarations Are Not Bulletproof 

Many importers accept supplier declarations at face value. If a supplier states that goods qualify for preferential origin, it is often assumed that the claim is valid. However, this can be a risky approach. Suppliers do not always apply the rules correctly. Some may not fully understand the applicable Product-Specific Rules (PSRs), while others issue blanket declarations covering all products on an invoice, even when only certain items genuinely qualify.

This can create a false sense of security. After all, goods that qualify for preferential treatment are typically more commercially attractive than those subject to full customs duties. The financial benefit can appear significant at the point of import, but that advantage can quickly disappear if HMRC later scrutinises the claim.

The key issue is that HMRC will not accept a supplier declaration as conclusive evidence on its own. Customs authorities may request supporting documentation demonstrating that the origin requirements have been met. Depending on the product, this may include catch certificates, landing records, vessel information, processing records, and evidence of where the fish was caught or harvested.

If the supplier cannot provide the necessary evidence, the declaration has little value. In such circumstances, HMRC may reject the preferential origin claim, resulting in the importer becoming liable for the unpaid customs duty, together with any applicable interest and potential penalties. Ultimately, the responsibility for substantiating a claim for preferential treatment rests with the importer, not the supplier.

How HMRC Spots Non-Qualifying Imports 

HMRC uses a mix of paperwork checks and trade intelligence. They can request documents confirming catch certificates, vessel registry, and process statements. They also compare your claims with known production patterns if a country isn’t a big producer of a species, large volumes of “wholly obtained” goods will raise eyebrows. 

The sting in the tail is that these checks often happen a year or more after import. By then, the goods are long sold, and you’re left with a surprise bill for duty plus interest! 

Common Mistakes Importers Make 

1. Assuming EU production equals EU origin – It doesn’t. 
2. Not confirming the raw material source – Without catch details, you can’t check eligibility. 
3. Blindly trusting supplier declarations – They’re only as good as the evidence behind them. 
4. Claiming preference on mixed invoices – If non-qualifying goods are present, then error-prone customs agents can mistakenly claim preference on everything. 
5. Poor record-keeping – You need to hold origin evidence for at least four years.

The TCA offers a valuable route to duty-free seafood imports, but only for businesses that can prove compliance with the rules of origin. Know your supply chain, understand the PSRs, keep your records in order, and verify every claim. Because when HMRC comes knocking, “the supplier said it was fine” is not a defence, and an invalid origin claim can quickly turn the catch of the day into a costly lesson.