Regulation 19 Inter-regional cumulation: qualifying DCTS countries in different regional groupsI1

United Kingdom

(1)

An exporter may regard the goods in paragraph (2) as goods originating from a qualifying DCTS country (in this regulation, “the cumulating DCTS country”) if—

(a)

the goods are further processed in the cumulating DCTS country,

(b)

the conditions set out in paragraph (3) are met, and

(c)

the Secretary of State has published a notice under paragraph (4).

(2)

The goods mentioned in paragraph (1) are qualifying DCTS goods which under regulation 4 are to be regarded as originating from a qualifying DCTS country in a different regional group to the cumulating DCTS country.

(3)

The conditions mentioned in paragraph (1)(b) are that—

(a)

the cumulating DCTS country complies with the conditions relating to customs cooperation and verification of proof of origin provided for by regulation 16 of the DCTS Regulations;

(b)

the processing carried out in the cumulating DCTS country where the materials are further processed goes beyond the processing described in regulation 8(2) (processing that does not constitute an important stage of manufacture);

(c)

in the case of textile goods, in addition to meeting the condition set out in sub-paragraph (b), the processing carried out in the qualifying DCTS country where the materials are further processed or incorporated goes beyond one or more of the following—

(i)

fitting of buttons or other types of fastenings;

(ii)

making of button-holes;

(iii)

finishing off the ends of trouser legs and sleeves or the bottom hemming of skirts and dresses and other apparel;

(iv)

hemming of handkerchiefs, table linen and other textile articles;

(v)

fitting of trimmings and accessories including pockets, labels and badges;

(vi)

ironing and other preparations of garments for sale ready-made;

(d)

the cumulating DCTS country submits a written request to the Secretary of State, providing evidence of the trade benefits of allowing the inter-regional cumulation;

(e)

the Secretary of State, after taking that evidence into account, is satisfied that there would be trade benefits in allowing the inter-regional cumulation.

(4)

The Secretary of State may publish a notice specifying—

(a)

the qualifying DCTS countries and goods in respect of which paragraph (1) applies;

(b)

the date from which the inter-regional cumulation may take effect;

(c)

if the Secretary of State considers it appropriate, the materials in respect of which the inter-regional cumulation may apply.

(5)

Where the condition set out in paragraph (3)(b) is not met or, in the case of textile goods, where the conditions set out in paragraph (3)(b) and (c) are not met, the final goods are to be regarded as originating from the qualifying DCTS country involved in the inter-regional cumulation from which the largest share of the value of the materials used in the manufacture or the final goods originates.

(6)

For the purposes of paragraph (5), the final good must still meet the conditions specified in regulation 4 to be regarded as originating from that qualifying DCTS country.

(7)

In this regulation, “inter-regional cumulation” refers to the treatment of goods originating from a qualifying DCTS country (“B”) in a regional group as goods originating from another qualifying DCTS country in a regional group (“C”), where C is in a different regional group to B, in the circumstances described in this regulation.

Annotations

Commencement

I1: Reg. 19 in force at 19.6.2023, see reg. 1(1)