EU-UK TCA for Tariff Heading 2710 - Refinery operations
1 Product Scope
Tariff Heading 2710 covers:
Petroleum oils and oils obtained from bituminous minerals (other than crude); preparations not elsewhere specified or included, containing by weight 70% or more of petroleum oils or of oils obtained from bituminous minerals.
2 Relevant Agreement and Annex
Applicable legal reference:
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EU-UK Trade and Cooperation Agreement (TCA), Title I - Rules of Origin (Part Two, Heading One, Chapter 2).
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Annex ORIG-2 - Product-Specific Rules of Origin.
3 Product-Specific Rule (PSR) for HS 2710
From Annex ORIG-2, the rule for heading 2710 reads:
"Manufacture from materials of any heading, except that of the product, provided that the value of all non-originating materials used does not exceed 40% of the ex-works price of the product."
4 Interpretation
Non-originating materials under the same heading (2710) may not be used.
Materials classified under other headings (e.g. 2709 crude petroleum) may be used, provided the value of all non-originating inputs does not exceed 40% of the ex-works price.
The product must undergo a Change in Tariff Heading (CTH) as part of the transformation.
5 Cumulation
The EU-UK TCA allows bilateral cumulation only.
Materials originating in the UK are treated as originating in the EU and vice versa.
Inputs from third countries cannot be cumulated.
6 Sufficient Working or Processing
Processing that qualifies:
Refining crude petroleum (heading 2709) into petroleum products (heading 2710);
Chemical transformation changing the essential character of the product.
Processing that does not qualify (as per Article ORIG.7):
Simple mixing of products;
Simple dilution;
Simple packaging or relabelling;
Any process that does not alter the tariff classification or essential character.
7 Origin Verification Process
Classify the product under CN 2710.
List all inputs with tariff headings and origin status.
Calculate the ex-works price of the finished product.
Determine total value of non-originating inputs.
If ≤ 40% of ex-works price = condition satisfied.
Ensure that no non-originating material of heading 2710 is used.
Confirm that the transformation changes the tariff heading (CTH achieved).
If all criteria are met, the product acquires EU or UK originating status.
8 Proof of Origin
The exporter must issue a Statement on Origin (Annex ORIG-4 wording) on the invoice or other commercial document.
Key requirements:
The exporter must have knowledge or proof of origin status;
Alternatively, the importer may claim preference based on importer's knowledge;
Statement must contain:
Specific wording from Annex ORIG-4;
Exporter's identification details;
Date and place of issue;
Origin of goods (EU or UK).
9 Record-Keeping
All origin documentation must be retained for at least three years. Documents include:
Bills of materials;
Supplier origin statements;
Cost/value breakdowns;
Proof of processing (refining records, blending recipes, etc.);
Customs export declarations.
10 Customs Verification
Upon request, customs authorities may:
Conduct administrative cooperation with the partner customs authority;
Request production of evidence supporting the originating status;
Deny preference if evidence is insufficient or non-compliant.
11. Responsibilities
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12. Summary Table - Tariff Heading 2710 under EU-UK TCA
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14. Conclusion
Preferential origin is a cornerstone of modern trade facilitation. Under the EU-UK TCA, it ensures that goods genuinely produced or sufficiently transformed within the EU or the UK benefit from duty-free access.
For petroleum oils (heading 2710), origin determination hinges on a change in tariff heading and a maximum 40% limit on non-originating inputs.
Strict adherence to these rules, proper documentation, and accurate origin statements are essential for maintaining compliance and securing preferential treatment.
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