A guide for UK businesses
Since the UK left the European Union (EU), UK businesses have had to adjust to new customs regulations, tariffs and export requirements when trading with the continent. The transition has resulted in specific complexities regarding customs declarations, rules of origin and product labelling. We’ve compiled these into a brief guide to give UK businesses an overview of what’s expected of them.
What is the EU Law on customs duty?
The Trade and Cooperation Agreement (TCA) between the UK and the EU gives UK businesses the advantage of tariff-free and quota-free trade for most goods. However, these benefits come with specific requirements that businesses must meet in order to qualify for duty exemptions.
Rules of Origin (RoO) are central in determining whether products can benefit from tariff-free access under the TCA. These rules establish the ‘economic nationality’ of a product to make sure that goods traded between the UK and EU are sufficiently manufactured or processed in one of the parties’ territories.
To meet these requirements, a product must either be manufactured in the UK or the EU or undergo substantial transformation in the territories – with transformation defined as major changes to the product’s character, composition or use. If the goods are only minimally processed, they may not qualify for preferential treatment, and customs duties could apply.
UK and EU Business Customs
While the TCA has streamlined some aspects of UK-EU trade, it has also introduced new procedures, including custom declarations. The UK’s Border Operating Model (BOM) provides a framework for these customs procedures, detailing the specific paperwork, entry processes and checks that need to be followed.
The phased introduction of health and safety checks on high-risk goods is another area that UK businesses need to prepare for. In particular, the UK is now applying the EU’s import safety checks on certain goods entering the country. This includes goods like food products, chemicals and pharmaceuticals, which will require additional documentation such as safety certificates, certificates of origin and lab test results.
Some checks, like those on fruit and vegetables, have been delayed until July 1st 2025. However, it’s advisable for UK businesses to determine their compliance status for the specific products they trade.
EU Labelling Requirements
In addition to customs duties, UK businesses now need to comply with a range of EU labelling standards when exporting to the EU. The labelling requirements are extensive, with specific regulations covering a wide range of goods.
Food products, for example, must include the following information:
Name of the food: The common name of the product, along with any specific descriptions to differentiate it from similar products.
Ingredients list: All ingredients, including additives.
Allergen information: Clear labelling for common allergens such as gluten, dairy, nuts, etc.
Country of origin: Required for certain foods, including meat and fish.
Date marking: Information such as “use by” or “best before” dates, depending on the product’s shelf life.
Net quantity: Information on the volume or weight of the product.
Name and address of the business operator: The company responsible for the product must be clearly identifiable.
For non-food products, the labelling is more complex and includes additional safety and certification requirements. For many products, such as electronics, machinery, toys and medical devices, a CE mark is mandatory. This signals that a product complies with European safety, health and environmental protection standards.
Businesses may also need to comply with specific labelling for hazardous substances. For example, chemicals imported into the EU may be required to display REACH compliance information, confirming that products have been properly tested and meet EU standards.
Beyond this, the European Union’s General Product Safety Directive (GPSD) also plays a role in determining product labelling for safety. GPSD requires that all consumer products sold in the EU be safe for use and that businesses provide proper warnings and instructions on labels to protect consumers from potential risks.
Streamline EU customs and labelling compliance with X2 (UK)
As a leading 4PL logistics provider, X2 (UK) has extensive experience handling the complexities of exporting and importing goods to and from the UK and Europe. Along with delivering the transportation resources needed for efficient cross-border logistics, we have the necessary expertise to advise you on everything from customs requirements to compliant product labelling.
Get in touch with X2 (UK) and discover how to trade more reliably and efficiently with the EU.