In our previous learning module, we talked about Certificates of Origin and what they are used for; on this occasion, it is the turn of their preferential duties’ counterpart, the ‘UK EUR1 Movement Certificate’.
What are EUR1 Movement Certificates?
EUR1 Movement Certificates are documents used in International Trade to support claims for preferential (usually zero) rates of duty in the country of importation.
EUR1s were initially introduced to the UK as part of the Trade Agreements the EU had in place with several countries all over the world. Eventually, as the UK departed from the European Community, and to ensure business continuation with all these trading countries, the UK rolled over the EUR1 Certificate and renamed it as UK EUR1 Movement Certificate. As the UK continues to ratify Trade Agreements with these countries, different requirements will potentially come into place and replace UK EUR1s.
EUR1s are directly related to the preferential rules of origin established in the Trade Agreement between the UK and the importing countries and therefore have very strict and specific requirements for goods and shipments to qualify for this document.
What are these requirements?
1 – EUR1s will only cover goods with UK originating status - in other words, goods that have been manufactured in the UK and comply with preferential rules of origin.
EUR1s can be issued for mixed consignments, meaning that exporters can declare goods of both preferential and non-preferential origin in the EUR1, but the importer will only benefit from reduced or nil import duty rates for the goods that are of UK origin. For mixed consignments, the EUR1 must hold the below declaration and the goods of non-preferential origin be clearly marked in the Invoice:
“The goods marked (*) in the Invoice are non-originating and not covered by this UK EUR1 Movement Certificate”.
2 – The goods must be shipped directly from the UK to the country of final destination.
The only instance where indirect shipments will be accepted is where the goods have entered into another customs territory en-route but stayed under customs supervision (i.e., into customs bonded warehouse) and were at no point released into free circulation.
3 – The goods must have been sold by a UK company and the EUR1 applied for by the UK exporter or a UK representative.
There is however an exception where EUR1s can be issued for a foreign company and that is when the UK subsidiary of the foreign company applies for this document on their behalf.
These are the three main conditions that exporters must comply with in order to successfully apply for an EUR1 in the UK.
How and where can you obtain this type of certificate?
In the UK, HMRC, Chambers of Commerce and some members of the Institute of Chartered Shipbrokers (on behalf of HMRC) are the sole bodies authorised to endorse EUR1 Movement Certificates.
To apply for an EUR1 with the London Chamber, exporters need to register to our free Community Network and complete and email back a Formal Undertaking, which will be used to set up their account in the Chamber’s online application platform. There exporters will be able to submit live applications.
The system will provide applicants with clear processing instructions, but these are the primary documents they will need to submit as back up:
- Commercial invoice
- Packing list
- Evidence of shipment, such as a Bill of Lading for goods that have already left the UK (issued retrospectively)
- Letter of authorisation, for agents applying on behalf of the exporter.
Although evidence of origin will not be required as back up, exporters will need to make an origin declaration in the application and should be prepared to present the corresponding origin evidence to the issuing body or to customs authorities should they require it. Please note, HMRC remains responsible for the verification of the originating status and they are within their right to challenge exporters at any time to ensure they remain customs compliant.
The origin declarations cover two different scenarios and exporters should make the declaration that applies to their exported goods:
- Exporters who have manufactured/produced the exported goods.
- Exporters who have bought in goods for export in the same state (goods manufactured/produced in the UK)
Most countries for which EUR1s can be produced for accept electronic signatures, however there are still some countries that will require the EUR1 to hold a wet signature from both the exporter/applicant and the issuing body. As you go through your application the system will produce a notification message to let you know if the country you are applying for requires wet stamps and signatures, in which case you will need to obtain a blank official UK EUR1 (you can email us to request it), sign it and post it back, and then our documentation officers will use this pre-signed EUR1 to print your application once it has been approved.
For countries that accept electronic signatures, applicants can select our DIY option and print their approved application in their office, given that they have an official blank UK EUR1 form in-hand.
Exporters will only be able to apply for one EUR1 per shipment. This is regardless of the number of invoices a shipment covers. Duplicate EUR1s can only be issued for those cases where the original EUR1 has been lost or destroyed.
Would you like to learn more about our Trade Documentation services or apply for your documents with us? Please reach out or visit our website for more information. The London Chamber of Commerce is the largest issuer of UK EUR1 Movement Certificates in the UK, and we are here to support your business.
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