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 misunderstanding is that if something is produced in a country, it automatically takes that country’s origin for trade purposes. If that were the case, everyone would route their goods through countries with zero-tariff deals, do a bit of processing, and send them in duty-free.
Trade agreements like the TCA were written with that loophole in mind, so the rules of origin are deliberately strict. For most processed seafood, the fish itself has to be wholly obtained in the EU or UK to get preferential status.
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
Much of the tinned fish sold by EU suppliers starts its journey far from EU waters. Italian plants work with tuna from the Indian Ocean, Portuguese factories can mackerel from West Africa, and Spanish producers jar anchovies caught off the coasts of Morocco.
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
Where the quota won’t help
When the quota runs out Once the annual quota is used up (3 million tonnes for 160414 and 4 million tonnes for qualifying 160420) the relaxed rule no longer applies. At that point, the standard product-specific rules kick in, meaning you must meet the wholly obtained requirement to claim preference. If not, the shipment is hit with the full MFN duty rate.
Why supplier declarations are not bulletproof
Many importers accept supplier declarations at face value; if the supplier claims the goods qualify, they assume it must be true. The problem is that suppliers aren’t always accurate. Some don’t fully grasp the PSRs in detail, and others provide broad declarations that apply to every item on an invoice, even if only a portion qualifies. After all, an import that claims preference will look far more financially attractive than one that doesn’t; at least initially, before HMRC turn up for an unexpected audit.
The problem? HMRC won’t just take the declaration as proof. They can and will ask for supporting evidence such as catch certificates, landing records, evidence of the catch location. If your supplier can’t produce it, the declaration is worthless, and you’re on the hook for the duty.
How HMRC spots non-qualifying imports
HMRC uses a mix of paperwork checks and trade intelligence. They can request documents showing catch areas, vessel flags, and processing steps. 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
The TCA gives UK importers a way to keep seafood duty-free but only if the origin rules are followed to the letter. The safest route is to know exactly where your fish comes from, understand the PSRs (and the limited quota exceptions), and keep every scrap of documentation.
Because when HMRC comes calling, “the supplier told me it was fine” isn’t a defence and an invalid origin claim can turn your catch of the day into an expensive mistake.
Next month, we’ll explore PEM or the Pan-Mediterranean Convention, a trade framework that can make claiming preferential origin a lot simpler. By recognising a broader network of partner countries and allowing materials from PEM members to count as originating, this convention can ease some of the headaches importers face when sourcing raw material from outside of the EU. If you’ve struggled with TCA rules of origin, then the PEM Convention may offer a welcome lifeline.