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Posted Fri, 20 Jan 2023 18:21:04 GMT by rich007a
If I were to import a component that was cast in the US, but machined (finished) in Canada, what would be the country of origin? Additional info: say cost of casting in US was £30k and cost of machining in Canada was £20k. Finished goods of this category attract 2% duty when imported from US, but 0% duty when imported from Canada. How do I calculate how much duty will be payable? Finally, would it make a difference if the parts were shipped from the US or from Canada?
Posted Wed, 25 Jan 2023 12:39:55 GMT by Customs oldtimer
Hi rich007a With the information you have it’s not possible to advise whether the goods would qualify as Canadian origin. To get the lower duty rate it is not sufficient for the goods to just be consigned from Canada. You and your supplier will need to look at the UK - Canada trade agreement to see what the origin criteria is for your goods and work out if the process is sufficient to qualify as Canadian. If the goods qualify as Canadian preferential origin the your supplier must provide the proof of origin. This is a specific statement set out in the agreement. At import you will also need to advise your customs agent so the lower duty can be claimed. It can make a difference where the goods are shipped from when claiming reduced duties under a trade agreement. In short if the goods are not kept under customs control whilst they are in transit through another country they lose their preferential origin status and will be subject to the standard any country duty rate
Posted Wed, 25 Jan 2023 17:51:38 GMT by HMRC Admin 10
I would advise contacting the Customs and International trade helpline on 0300 322 9434.

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