UK joins the CPTPP Free Trade Block

The UK announced that it has joined the Comprehensive and Progressive agreement for Trans Pacific Partnership (CPTPP).  The precise entry date for the UK has yet to be agreed. The CPTPP is a free trade agreement with 11 other countries (Australia, New Zealand, Canada, Japan, Mexico, Singapore, Vietnam, Peru, Malaysia, Chile and Brunei).   Goods moving between members, which originate in those countries, have a reduced, preferential rate of customs duty, which is often but not always nil. CPTPP commenced in late 2018. The population of countries in CPTPP is more than 500 million.  UK exporters will need to obtain a Certificate of Origin (COO) certificate to prove that the goods originated in the UK to claim this preferential rate of customs duty in the CPTPP.  UK importers will need to obtain a COO certificate from the seller to claim the preferential rate of customs duty on arrival in the UK. Imports into the UK from the CPTPP remain subject to import VAT and excise duty, as applicable.

As expected the agreement includes considerable detail about COO rules, the environmental, health and safety standards required for goods to benefit from this arrangement, plus benefits on the sale and purchase of services and investment.

If you have any questions please ask our Indirect tax team.