European Community Preferences: Trade with Turkey

Foreword

This notice cancels and replaces Notice 812 (April 2005). Details of any changes to the previous version can be found in paragraph 1.2 of this notice.

Further help and advice

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Other notices on this or related subjects

827 European Community Preferences: Export Procedures

828 Tariff Preferences: Rules of origin for:

1. Introduction

1.1 What is this notice about?

This notice explains the rules which must be satisfied if goods are to qualify for tariff preferential tariff treatment under the Customs Union which the EC has concluded with Turkey for a wide range of industrial products, and under the reciprocal traditional preferential trade arrangements which the EC has concluded with Turkey for most agricultural and all coal and steel products.

The countries in the EC are:

Austria, Belgium, Bulgaria, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, the Republic of Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom.

1.2 What's changed

This notice has been amended to include some minor textual amendments to the notice and inclusion of Romania and Bulgaria into the European Community from 1st January 2007. It takes account of the change of procedure for disagreeing with a Customs decision and the change of name of Department of Trade and Industry (DTI) from Business Enterprise and Regulatory Reform (BERR) to Department for Business Innovation and Skills (BIS).

It includes guidance on EC Wide Approvals and on Pan Euro-Med Cumulation and shows changes to the specimen invoice declaration, suppliers declaration and long term suppliers declaration to include Pan-Euro-Med.

It gives advice on the Customs procedure code (CPC) to be used for goods covered by an A.TR and on the inclusion of mixed consignments in Box 10 of the A.TR.

Section 9, the list of origin rules for agricultural and marine products covered by Decision 1/98 has been deleted and these rules can be found in Notice 828. Section 15 Tariff Headings for coal and steel products which must originate in the EC or Turkey in accordance with normal preferential rules of origin has also been deleted and these products can be found in Notice 828.

Any changes to this notice after July 2009, may be accessed on our website at www.hmrc.gov.uk or by phoning the Helpline on 0845 010 9000.

1.3 Who can tell me more about preference given abroad?

If you want to know about:

• which goods are eligible for preference
• preference rates of duty abroad, or
• quota limits

ask either your overseas customer or the Department for Business Innovation Skills: (BIS) (formerly the Business Enterprise Regulatory Reform (BERR)) 1 Victoria Street, London, SW1H OET, (Phone 020 7215 5000).

1.4 Do you check my records?

Yes. The Customs authorities abroad may ask us to check preference documents up to three years from issue.

You must therefore:

• keep and produce (if required) all necessary supporting evidence, including supplier's declaration where appropriate, and
• keep any relevant commercial documentation for at least three years.

If you cannot prove your claim to preference, your customer may have to pay full duty rates and possibly a penalty as well. The customer may then look to you to recover these charges.

As well as these checks, we may make our own enquiries.

1.5 What is the law relating to preference arrangements?

The law on preference arrangements is contained in European (EC) Regulations which are law in the UK through the European Communities Act 1972.

Relevant provisions include:

• Decision 1/95 of the EC-Turkey Association Council -which established a Customs Union between the EC and Turkey for industrial products.
• Decision 1/2006 of the EC-Turkey Customs Co-operation Committee – which lays down the administrative and documentary requirements for the operation of the Customs Union.
• A list of extant regulations is shown in the Revenue and Customs Tariff – Volume 1 Part 7 Section 6.

This notice aims to guide you, but it is not law; it only explains what we understand the law to say.

Anyone making a false declaration in respect of the preferential origin of goods or failing to comply with other legal provisions may be liable to penalties.

In addition an incorrect declaration may mean an overseas customer having to pay the full rate of customs duty. The customer may then look to you to recover the charges.

1.6 What do I do if I disagree with a Customs decision?

If you do not agree with any decision issued to you there are three options available. Within 30 days of the date of the decision you can either:

send new information or arguments to the decision maker, request a review of the decision by someone not involved in making the disputed decision. Your request must be in writing and should set out the reasons why you do not agree with the decision. Please write to:

Customs and International
Review and Appeals Team
7th Floor South West
Alexander House
21 Victoria Avenue
Essex
SS99 1AA,

or

• appeal direct to the Tribunal who are independent of HMRC.

If you opt to have your case reviewed you will still be able to appeal to the tribunal if you disagree with the outcome.

Further information relating to reviews and appeals is contained in leaflet HMRC1 which can be obtained from our website or by phoning the Helpline on 0845 900 0404.

2. Goods entitled to preferential treatment

2.1 Industrial products

These goods are covered by the Customs Union between the EC and Turkey and they can normally qualify for preference if they:

(a) originate in, or

(b) are in free circulation in either the Community or Turkey.

2.2 What goods are considered to be in free circulation?

The following are considered to be in free circulation:

(a) Imports from outside the Community or Turkey on which:

• all import formalities have been completed, and
• any customs duties or equivalent charges have been paid and not repaid in whole or in part.

(b) Goods manufactured in the Community and/or Turkey wholly or partly from materials or parts originating outside the Community or Turkey, provided that:

• all import formalities for the materials or parts have been completed, and
• any customs duties or equivalent charges have been paid and not repaid in whole or in part.

2.3 What goods are NOT eligible for preferential treatment?

IPR and End Use goods are not eligible for preference as these goods are not in free circulation with all the duties or other charges paid and therefore DO NOT qualify for preferential treatment.

2.4 Agricultural products

Most agricultural products are covered by the traditional preferential arrangements described in notices 826, 827 and 828 and qualify for preference only if they originate in the Community or Turkey in accordance with specific rules of origin.

Paragraph 4 of this notice provides information about the proof of origin which must be produced to support a claim to preference.

2.5 Coal and Steel products

The coal and steel products (ores, slags, ash, mineral fuels, base metals and articles of base metal and articles of iron and steel) are covered by traditional preferential arrangements and qualify for preference only if they originate in the Community or Turkey in accordance with the preferential rules of origin contained in Notice 828: Tariff Preferences: Rules of Origin.

Paragraph 4.7 of this notice provides information about the proof of origin which must be produced in support of a claim to preference.

3. Imports

3.1 What form must I use to support my claim?

If you claim preference for Turkish imports an EUR1/EUR-MED Movement certificate or an invoice declaration (see paragraph 5.2) is required for most agricultural and all coal and steel products. An A.TR Movement certificate is required for all other industrial products. Proof of direct transport between Turkey and the EC is required in all cases.

The EUR1/EUR-MED or A.TR document must be:

• completed and signed by the exporter or agent
• stamped and signed by the Customs officer before exportation, and
• presented to the importer's customs within four months of the date of authentication by Customs.

3.2 What is direct transport

• Goods transported without passing through countries outside either the Community or Turkey, and
• goods transported through countries outside the Community or Turkey, or transhipped in those countries, provided they are not delivered for home use in the country of transit; they remain under customs control in the country of transit; and they do not undergo any operation there other than unloading, reloading or any operation designed to keep them in good condition.

3.3 How do I prove goods were directly transported?

As well as the Movement certificate or invoice declaration we require a single transport document covering the passage of the goods for Turkey. It may be one of the following:

For goods by sea

The bill of lading either from:

• Turkey to the UK, or
• another Community port, plus the Community transit documents from that port to the UK.

For goods by air

A through air waybill from Turkey to the UK or, if the goods have completed the journey by road or rail, an air waybill to a Community airport plus Community transit documents.

For goods by road

A copy of the International Carriage of Goods by Road – (CMR) document or a TIR carnet.

For goods by rail

A copy of the International Consignment Note (CIM).

3.4 How should I enter my imports to Customs?

Follow the normal requirements for entry of imported goods set out in the Tariff, Volume 1. The necessary supporting documents, including a valid preference document (and, if appropriate, the evidence of direct transport) must normally be presented with the entry. For goods covered by a tariff quota there are additional procedures which are set out in the Tariff, Volume 1, Part 8.

3.5 What if no satisfactory evidence is available?

If we have no reason to doubt that the goods are entitled to preference we will accept a provisional claim to preference and release the goods subject to you or your agent giving security for the full customs charges due if the claim is eventually rejected. You must produce valid documentary evidence to support the claim within four months from the date the entry is accepted.

If at the time you produce the evidence, the preference is no longer available (for example, because a tariff quota has been exhausted or a ceiling reached) you will have to pay the full duty.

3.6 What sort of security will you accept?

You can give security either:

• by a deposit sufficient to cover the full customs charges due if the claim fails
• by a guarantee (form C&E 250) endorsed by a bank or other financial institution approved by Customs for such purpose. If you wish to provide security in the form of a guarantee you should apply in writing to

Guarantee Seat
HM Revenue & Customs
National Import Duty Adjustment Centre
Custom House
Furness Quay
Salford
M5 2XX
(Phone: 0161 261 5508),

or

• if you wish to avoid having to provide security for the full rate of duty you can enter the goods to warehouse while you are waiting for the evidence to arrive.

Further details on warehousing can be found at Section 7 of Notice 826 Tariff preferences Imports.

3.7 Are preference documents checked?

Yes. All preference imports are liable to be checked before you take delivery of the goods.

A Turkish A.TR/EUR1/EUR-MED document might not always satisfy us that there is proper entitlement to preference. We would then ask the Turkish Customs to verify the document. In these cases, duty must be paid on deposit at the full rate.

We can also ask those authorities to check on goods which have already been released at the preferential rate.

Where any of these checks fail to show that the goods qualify you will have to pay duty at the full (non-preferential) rate.

Note: Community legislation allows for the collection of back duty for a period of up to three years after the goods have been imported. To insure against this possibility many importers include in their contracts a clause allowing them to recover duty from the supplier where checks reveal that the certificate was invalid.

In your own interest therefore you should check as far as possible that any preference document you present to us is valid and that the goods covered are properly entitled to preference.

Note: Anyone making a false declaration in respect of the preferential origin of goods or failing to comply with other legal provisions may be liable to penalties.

3.8 Can information on preference documents be kept confidential?

Yes. You may hold a Turkish supplier's A.TR/EUR1/EUR-MED and have sold the goods to the importer, but wish to keep the certificate's details from the importer or his agent. To do this, you can send the certificate direct to us at the National Clearance Hub, Custom House, Furness Quay, Salford, Manchester, M50 3XN (Salford only accept documents by post), and ask for the information to be treated as confidential. We will keep the certificate, give it a Customs number, and advise you of this number. The importer would then quote this number at entry, adding to the preference claim:

"Certificate A.TR/EUR1/EUR-MED already presented – Customs registered number ...................... refers".

3.9 Do tariff quotas affect imports from Turkey?

Yes. Tariff quotas still apply on some commodity codes, mainly agricultural products.

3.10 Does postal traffic have different procedures?

Yes. Movement certificates are not used. Goods sent by post between the Community and Turkey qualify for preference unless a yellow label (form C1130) indicating that the goods are not in free circulation in the EC-Turkey Customs Union is attached to the parcel or the accompanying documents. Any declaration required under postal regulations must still be made.

4. Exports

4.1 How do I complete the documents?

The law requires that the issue of the form A.TR must be linked to an actual export procedure which demonstrates that the rules on free circulation (see paragraph 2.2) have been met. Before the documents are completed either you, or your agent must be sure the goods are eligible for a preferential rate of duty. Completion of form A.TR is covered in Section 8. For completion of form EUR1/EUR-MED please refer to Notice 827 European Community Preferences: Export procedures.

4.2 What is direct transport?

The direct transport (consignment) rules are shown at 3.2 and 3.3 of this notice.

4.3 Customs Procedure Code (CPC)

Customs Procedure Code 10-00-001 must be declared on the export customs declaration for goods covered by Certificate A.TR.

4.4 What procedure must I follow?

Present the completed A.TR Movement Certificate to a Customs office of Export together with:

• a pre-lodged New Export System (NES) export declaration or plain paper C88 customs export declaration (both of which can be obtained from your agent/forwarder) showing that the goods are in free circulation and that they are not being exported from a Customs procedure in which all import formalities have not been completed and in which all customs duties or equivalent charges have not been paid or have been repaid in whole or in part, and
• supporting evidence such as an invoice or packing list.

Please Note that A.TR Movement Certificates can only be stamped by:

• the Customs office at Salford which will only accept postal applications accompanied by the above documents. Its address is:

The National Clearance Hub
Customs House
Furness Quay
Salford
Manchester
M50 3XN

Phone: 0161 261 7000

or

• local Chambers of Commerce or local Offices of the Chartered Institute of Shipbrokers who may authenticate the documents under the authority delegated by Customs. They will again need to see the documents referred to above.

Once satisfied the issuing office (or Chamber) will endorse the A.TR. You must then send the original document to your importer and keep a copy for your records.

Details of simplified procedures which dispense with the normal requirement for Forms A.TR to be presented for stamping are provided in Section 6.

4.5 Why is my declaration on the document important?

By signing and presenting a completed document, you are declaring that the goods are eligible for preference. So, as the exporter, you must be able, if asked, to prove that the goods covered by an A.TR or EUR1/EUR-MED are entitled to preference.

If a declaration is made to one of our officers which is found to be untrue in any material particular, we may impose a penalty.

4.6 Who is responsible for deciding whether preference is appropriate?

As the exporter you are responsible for deciding if the document is to be completed in any particular case. Whilst we may refuse to authenticate a document which appears to be incorrect, you must accept responsibility for the consequences of an incorrect document.

4.7 Can A.TR documents be used for Coal and steel products?

No. These goods are excluded from the ‘free circulation’ rule for preferential tariff treatment explained in paragraph 2.2, so A.TR documents must not be used. To qualify for preferential treatment the goods must originate in the EC or Turkey in accordance with normal preferential rules of origin. The Form EUR1/EUR-MED Movement Certificate or invoice declaration must be used to support a claim to preference.

Any exporter in the Community or Turkey can issue an invoice declaration (the format of which is shown in Section 9) where the value of the consignment is below £4,830. Exporters who have been approved by the customs authorities to do so can issue invoice declarations for consignments with a value in excess of that amount. If you are interested in becoming an ‘approved’ exporter you should contact your local Revenue and Customs Business Centre. To establish the relevant centre contact our Helpline on 0845 010 9000 with your postcode and they will advise you of the appropriate centre.

4.8 Can A.TR certificates be used for agricultural products?

No. As with coal and steel products an EUR1/EUR-MED movement certificate or invoice declaration must be used for most agricultural products. Details are in Section 5.

4.9 Can preference certificates be issued retrospectively?

Goods may be exported to Turkey before a supporting Movement Certificate A.TR or EUR1/EUR-MED is presented for authentication. If so, the form should be sent to the Customs office at Salford or presented to the local Chambers of Commerce or institute of Chartered Shipbrokers for stamping where they will exceptionally consider issuing the document retrospectively, as long as the following are produced:

• a satisfactory written explanation of why the document was not presented before the goods were shipped, together with full details of:
  – the goods concerned, including their marks and numbers
  – how they were packed
  – the means of transport
  – the date on which they were exported
• the trader's copy of the pre-shipment document, for example, C88 copy 3, used in connection with the goods, quoting the export consignment identifier (ECI) where appropriate
• a properly completed Movement certificate marked ‘ISSUED RETROSPECTIVELY’ in the Remarks box, and
• any other information that the Customs officer may ask for.

An invoice Declaration can be issued retrospectively so long as it is presented in the importing country no longer than two years after the export of the products to which it relates.

4.10 Can a duplicate be issued?

Yes. You can be issued with a duplicate A.TR or EUR1/EUR-MED if the original has been lost, stolen or destroyed. You, as the exporter, or your agent should apply for the issue of a duplicate at the Customs office where the original was issued, and must provide the following:

• a satisfactory statement of why a duplicate is required, stating when and where the original movement certificate was issued
• supply copies of export documents in your possession
• a properly completed Movement certificate; marked ‘DUPLICATE’ and with the serial number and date of issue of the original certificate inserted in the Remarks box
• a written declaration that the goods are the same as those covered by the previous document, and
• an undertaking to surrender the original if it is ever recovered.

We will date the duplicate certificate with the date of issue of the original certificate and it will therefore be valid for the same period.

4.11 When can replacement movement certificates be issued?

(a) Goods consigned to Turkey

In some cases, an A.TR/EUR1/EUR-MED issued by another Community country's Customs authority may become invalid because of a change in consignment arrangements, for example, when part of EU consignment remains in the UK and the remainder is sent to Turkey. A replacement certificate can be requested by applying in writing to the customs office at Salford (address shown in paragraph 4.4 or the Local Chambers of Commerce or local office of the Institute of Chartered Shipbrokers and send/take:

• a completed certificate (see paragraph 4.1) marked in the Remarks box with the appropriate one of the following:

Replacement of A.TR/EUR1/EUR-MED No ..........
dated................................ issued in ......................................." (stating the country where the certificate to be replaced was issued)

OR

If the Remarks space of the certificate being replaced bears the word "DUPLICATE" or its equivalent in one of the other official EEC languages, that is, "DUPLIKAT", "SWEITAUSFERTIGUNG", "DUPLICATA", "DUPLICATO", "DUPLICAAT", the statement "Replacement of duplicate A.TR/EUR1/EUR-MED
No.............................. dated..........................issued in ..........................................." (stating the country where the duplicate movement certificate to be replaced was issued)

OR

If the Remarks space of the certificate being replaced bears the words "ISSUED RETROSPECTIVELY" or the equivalent in one of the other official EC languages, that is, "UDSTEDT EFTEROFLGENDE", "NACHTRAGLICH ERTEILT", "DELIVRE A POSTERIORI", "RILASCIATO A POSTERIORI", "AFGEGEVEN A POSTERIORI", the statement "Replacement of retrospective A.TR/EUR1

No. ......................................................................... dated...........................

issued in .................................................." (stating the country where the retrospective certificate to be replaced was issued)

• the A.TR/EUR1/EUR-MED which is to be replaced, and
• a declaration that the goods are the same goods, or formed part of the consignment, for which the previous certificate was issued.

(b) Goods consigned from Turkey

If goods, which are eligible for a preferential rate of duty are imported into the UK from Turkey and are being sent on to other Community countries, we may issue a replacement certificate for full or part consignments subject to the conditions given below. The completed document (see paragraph 4.1) is to be accompanied by:

• if available, the certificate authenticated by Turkish Customs, or
• if not available, by details of the original shipment (import entry number and date, port of importation, name of importing vessel etc.), and
• a declaration by the exporter to the effect that the goods for which the replacement document is being requested are the same goods, or formed part of the consignment, for which the Turkish document was originally issued.

(c) Split or consolidated consignments

A replacement certificate may cover one, or a number of documents, of the same type. Instead, several documents of the same type may replace a single document. Any statement in the original document's Remarks box must be repeated in the Remarks box of the replacement document(s).

4.12 Where can I get movement certificates and yellow labels?

These can be obtained by contacting the National Advice Service. Please use the following form numbers when applying:

• EUR1 Form C1299
• EUR-MED Form C1300
• A.TR Form C1232
• Yellow label Form C1130.

5. Certain agricultural and marine products

5.1 Agricultural products

Decision 1/98 of the EC-Turkey Association Council 1998 consolidates in a single document the traditional preferential trade arrangements between the Community and Turkey for most agricultural products.

5.2 Product list/documentation

The products covered by Decision 1/98 fall within Customs Tariff, Chapters 1–24, 45 and 53. The origin rules for the products can be found in Notice 828 and a movement certificate EUR1 must be used as the proof of preferential origin. An Invoice Declaration may be used in lieu of a Movement certificate by approved exporters. The existence of an origin rule does not necessarily mean that a preferential rate of duty is available for the product concerned. You can access the TARIC website to check whether your goods are entitled to preference. If it shows ‘Customs Union Duty (TR)’ an A.TR should be used. If it shows ‘Tariff preference (TR)’ an EUR1/invoice Declaration should be used.

Any exporter in the EC or Turkey can use an invoice declaration (the proof of origin) if the value of any consignment is below £4,830. If you wish to use such declarations for consignments above £4,830, then you must apply to the Customs Helpline on 0845 010 9000 to become an approved exporter.

5.3 Rye imported from Turkey

Rye, under commodity code 1002 0000, can be imported at a reduced rate of duty if:

• it is produced in Turkey
• it is transported direct to the EU
• it is accompanied by an EUR1 certificate, and
• a special export tax has been paid in Turkey.

The duty will be reduced by the amount of the tax paid, up to a limit of 11.68 Euro per tonne. This will be indicated in the ‘remarks’ box of the EUR1 certificate in one of the official languages of the Community as follows:

• "Special export tax in accordance with EEC Regulation 1180/77 discharged to amount of ............. Euro", or
• "Taxe speciale a l'exportation selon reglement (CEE) No 1180/77 acquittee pour un montante de ............. Euro", or
• "Besondere Ausfubrabgabe gemass Verordnung (EWG) Nr 1180/77 in Hone von .............. Euro entrichtet",or
• "Tassa speciale per l'esportazione pagata, secondo regolamento (CEE) No 1180/77 per un importo di ..................... Euro", or
• "Speciale effing bij uitvoer bedoeld in Verordening (EEC) Nr 1180/77 ten bedrage van ....................... Euro voldaan".

6. Simplified procedures

6.1 What simplifications are available?

Exporters who frequently send goods to Turkey may apply for permission to become an approved exporter to:

• issue pre-endorsed A.TRs, (see paragraph 6.4)
• use an invoice declaration instead of a movement certificate EUR1/EUR-MED, (see paragraph 6.6).

This avoids the need to comply with normal authentication procedures at an office of departure for each consignment.

6.2 Which traders may use pre-authenticated A.TR certificates/invoice declarations?

We will consider an application for authorisation from a trader who:

• exports goods which qualify for an A.TR certificate/invoice declaration, and
• is able to maintain records sufficient to relate the pre-endorsed certificate to the goods dispatched.

6.3 How do I apply for authorisation?

Written or telephone application for authorisation must be made to your local Revenue and Customs Business Centre. To establish the correct Business Centre for your postcode contact the Revenue and Customs Helpline on 0845 010 9000.

If records of transactions are kept at more than one address, a separate application is to be made for each set of premises.

When completing the Movement Certificate A.TR ensure that ‘Simplified Procedure’ is inserted in Box 8 of the certificate.

6.4 Supply of pre-endorsed forms

When Traders are approved an initial supply of blank pre-endorsed certificates will be supplied to each trader authorised to use these certificates. If you need further supplies of blank forms you need to order them from your local Revenue and Customs Business Centre.

6.5 EC Wide Approvals

UK exporters who frequently export goods direct from other Member States, but who wish to issues pre-authenticated A.TR’s in the UK for the products concerned can apply to their local Business Centre for a new or extended authorisation to enable this to happen.

It should be noted that exporters already approved for ‘UK exports’ are not automatically able to use this facility. They must apply to have their existing approval extended.

UK Customs is obliged to refer any such applications to the relevant authorities in the Member States from which such exports would be made.

Once an authorisation is granted, a copy of the authorisation letter will be sent to the HMRC Preference Policy Team in Southend who in turn will copy it to the relevant authorities in the other Member States(s) concerned.

There will be occasions when checks will be required of companies who are exporting goods direct from the UK, on behalf of commercial operators in other Member States, who have applied to their own Customs authorities to issue pre-authenticated A.TR’s for the directly exported goods concerned.

6.6 Invoice declarations

An invoice declaration, (see Section 9) may be used instead of a movement certificate EUR1 by approved exporters. A separate approval would need to be made to use this facility, please refer to Notice 827 European Community Preferences: Export procedures. The approved exporter has to insert a statement of origin on the invoice delivery note or other commercial documents.

7. Pan European Cumulation/Euro-Med Cumulation

7.1 Pan European Cumulation

Under the Europe agreements between the EC and, Iceland, Norway and Switzerland (including Liechtenstein) most products originating in Turkey in accordance with preferential rules of origin can be considered as originating in the EC or one of those countries when they are incorporated into finished products for export under preference.

You can find out more about Pan-European diagonal cumulation in Section 2 of Notice 828.

7.2 Allocation of origin

Materials originating in Turkey can be considered as originating when incorporated into finished products exported under preference.

You should note that it is also possible to re-export such materials under preference to the partner countries listed in paragraph 7.1 without additional processing so long as the proof of origin (EUR1 or invoice declaration) clearly shows the goods as being of Turkish origin.

For example: Turkish fabric is imported into the EC under A.TR procedure but also covered by a Supplier's Declaration to prove preferential origin. If this fabric is then exported to Norway without further processing, the EUR1 issued must indicate Turkish origin.

7.3 What documents must I use?

If you are importing goods from Turkey for re-export under cover of a form EUR1 or invoice declaration (in either the same state or after further processing) to Iceland, Norway or Switzerland, you will need to obtain from your Turkish supplier a Suppliers Declaration or a long term suppliers declaration (the format of these declarations can be found in Section 11) confirming that the goods have originated in Turkey in accordance with preferential rules of origin. The same applies in reverse – if you are an exporter your customer in Turkey may ask you to provide a Suppliers Declaration for goods which will subsequently be exported under preference (in the same state or after further processing) to one of the partner countries noted above.

7.4 Pan Euro-Med Cumulation

This is the extension of the diagonal cumulation arrangements (described in Notice 828) that are currently available for the Pan-European countries (EC, Norway, Iceland, Switzerland (including Liechtenstein) and Turkey to the Faroe Islands and to its Mediterranean partners (Algeria, Morocco, Tunisia, Egypt, Jordan, Lebanon, Syria, West Bank/Gaza and Israel). It also allows agricultural products originating in Turkey (which were excluded from the Pan European cumulation system) to participate in the arrangement.

7.5 Free Trade Agreements (FTA’s) and Variable Geometry

Full implementation of the system of Pan-Euro-Med cumulation is dependant on all countries within the Pan-Euro-Med zone having concluded Free Trade Agreements with each other which contain identical rules of origin.

Variable Geometry recognises that it could be some time before there is a complete network of FTA’s in place, and that in the meantime those countries who have concluded the necessary agreements with each other should be able to benefit from cumulation arrangements.

Under the variable geometry Pan-Euro-Med cumulation can only be applied if the countries of final manufacture and of final destination have concluded Free Trade Agreements with all of the countries in the zone which have participated in the acquisition of originating status – that is, with all of the countries which have supplied originating (in accordance with preferential rules of origin) materials, components or parts.

Materials originating in a country in the zone which has not yet concluded a Free Trade Agreement with the countries of final manufacture/final destination must be treated as non-originating.

A MATRIX has been published on our website showing which countries have concluded agreements with which other countries in the Pan-Euro-Med zone.

You will need to check the Matrix before you issue a Pan-Euro-Med proof of origin. If your product incorporates materials, components or parts originating in another country in the pan-Euro-Med zone, you must ensure the country that provided the materials etc has concluded the necessary Free Trade Agreement (FTA) with the country in the zone to which the goods are being exported. If the necessary agreement is not in place you cannot export the goods under the Pan-Euro Med cumulation arrangements or under cover of a EUR-MED proof of origin.

For further information on Pan-Euro-Med cumulation please refer to Section 4 of Notice 827.

7.6 What documents must I use?

EUR-MED Movement Certificates

A new Certificate – form C1300 (EUR-MED) – has been produced as the basic proof of origin under the new arrangements. It can be ordered from our Helpline on 0845 010 9000 in the normal way.

Invoice Declarations

There is also a new EUR-MED Invoice Declaration for use with these new cumulation provisions (see Section 9).

For further Information on Euro-Med Documentation please refer to Section 4 of Notice 827.

8. How to complete A.TR

9. Specimen invoice declarations

a) Specimen Invoice Declaration (Standard)

A specimen invoice declaration is shown below. You should refer to the notes below when completing this declaration.

The exporter of the products covered by this document, (Customs Authorisation No ....................... (1) declares that, except where otherwise clearly indicated, these products are of ............................... preferential origin (2).................................................. (Place and date) (3) .................................................. (signature – this must be followed by the name of the signatory in clear script) (4)

You should include the information shown below. The numbers shown correspond to the numbers on the invoice declaration. Insert the details at the corresponding numbers on the invoice declaration.

Notes:

(1) This only needs to be filled in by Approved Exporters. When a declaration is made out by an exporter who is not approved, then the words in brackets should be omitted or the space left blank.

(2) Origin of products to be shown.

(3) This may be left blank if the information is already contained on the document.

(4) A declaration made out by an approved exporter need not be signed.

Note: When an invoice includes any non-originating goods, then these must be clearly indicated.

b) Specimen Invoice Declaration (EUR-MED)

The exporter of the products covered by this document, ……………… (Customs Authorisation No ............................... (1) declares that, except where otherwise clearly indicated, these products are of ....................................................................... preferential origin (2). Cumulation applied with .................................................. (name of country/countries) .......... No Cumulation applied (3) ………………………………. (Place and Date) (4) .................................................. (signature of the exporter. In addition the name of the person signing the Declaration has to be indicated in clear script) (5).

Important: The footnotes do not have to be reproduced on the invoice

Notes:

(1) When the Invoice Declaration is made out by an Approved Exporter, the authorisation number of the Approved Exporter must be entered in this space. When the Invoice Declaration is not made out by an Approved Exporter, the words in brackets should be omitted or the space left blank.

(2) Origin of products to be shown indicated.

(3) Complete/Delete where necessary

(4) These indications may be omitted if the information is contained in the document itself.

(5) In cases where the exporter is not required to sign, the exemption of signature also implies the exemption of the name of the signatory

NB. You should be aware that when an invoice clearly includes any non-originating goods, then these must be clearly indicated.

10. ‘Wholly obtained products’

The following agricultural products will be regarded as of Turkish origin:

(a) vegetable products harvested in Turkey

(b) live animals born and raised in Turkey

(c) products derived from live animals born and raised in Turkey

(d) products of hunting and fishing carried on in Turkey

(e) marine products taken from the sea by Turkish ships

(f) products made on board Turkish factory ships exclusively from products referred to in subparagraph (e) above, and

(g) goods obtained in Turkey by working or processing the products listed at (a) to (f), even if other products are used in their manufacture, on condition that products obtained outside Turkey or the Community are only used on an accessory basis in the manufacture.

Notes:

• The expression ‘in Turkey’ covers territorial waters.
• The origin of power, fuel, plant, equipment and machinery used in the production of goods, and of packaging is to be disregarded when establishing Turkish origin in accordance with this section.
• For the purpose of subparagraphs (e) and (f) above, the terms ‘Turkish ships’ and ‘Turkish factory ships’ apply only to ships:
  – which are registered in Turkey
  – which fly the Turkish flag
  – of which at least half are owned by Turkish nationals or by a company whose head office is situated in Turkey and whose manager or managers, chairman of the board of directors or of the supervisory board and the majority of the members of those boards are Turkish nationals and of which, in addition, as regards companies, whether or not with limited liability, at least half the capital belongs to Turkey, to bodies governed by public law, or to Turkish nationals
  – whose senior officers are all Turkish nationals; and
  – of which at least 75% of the crew is composed of Turkish nationals.
• The products mentioned in subparagraph (e) include those taken outside Turkish waters.

11. Format of a supplier's declaration (including EUR-MED) for products having preferential origin status

Read the Notes at paragraph 11.2 before you sign this declaration. Make sure the rules of origin as set out in Notice 828 Tariff preferences: Rules of origin for: are met.

11.1 Format for supplier's declaration

DECLARATION FOR GOODS HAVING PREFERENTIAL ORIGIN STATUS

I, the undersigned, declare that the goods listed on this document ………………………………….(1) originate in……………………(2) and satisfy the rules of origin governing preferential trade with ………………………………....(3). I declare that

* Cumulation applied with…………………………….. (name of the country/countries)

* No cumulation applied (4) (* Delete as appropriate)

I undertake to make available to the customs authorities any further supporting documents they require

……………………………………………… (5)

……………………………………………… (6)

……………………………………………… (7)

11.2 Notes on supplier's declaration

Use the wording at paragraph 11.1 as the supplier's declaration for a single transaction covering originating goods and insert:

12 Format of a long term supplier's declaration (including EUR-MED) for products having preferential origin status

12.1 Format for long term declaration

Read the Notes in paragraph 12.2 before you sign this declaration. Make sure the rules of origin as set out in Notice 828 Tariff preferences: Rules of origin for: are met.

LONG TERM DECLARATION FOR GOODS HAVING PREFERENTIAL ORIGIN STATUS

I, the undersigned, declare that the goods described below:

…………………………………. (1)

…………………………………. (2)

………………………………….

…………………………………..

…………………………………..

…………………………………..

which are regularly supplied to ....................................................(3) originate in............................................. (4) and satisfy the rules of origin governing preferential trade with ..............................................................(5) I declare that :

*Cumulation applied with……………………………………..(name of the country/countries) (6)

* No cumulation applied
(* Delete as appropriate)

This declaration is valid for all further supplies of these products despatched From ........................ to ........................(7). I undertake to inform ............................................... immediately if this declaration is no longer valid I undertake to make available to the customs authorities, if required, evidence in support of this declaration.

…………………………………. (8)

…………………………………. (9)

.............................................. (10)

12.2 Notes on long term declaration

Use the wording at paragraph 12.1 as the long-term supplier's declaration covering originating goods and insert:

Do you have any comments or suggestions?

We would be pleased to receive any comments or suggestions you may have about this notice. Please write to:

HM Revenue & Customs
Customs & International
Duty Liability Team
10th Floor South East
Alexander House
Southend-on-Sea
Essex
SS99 1AA

Please note this address is not for general enquiries.

For your general enquiries please phone the Helpline on 0845 010 9000.

If you have a complaint

For further information about our complaints procedures go to www.hmrc.gov.uk and under ‘quick links’ select ‘Complaints’.

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