# EU-UK TCA for Tariff Heading 2710 - Refinery operations

#### 1 Product Scope

Tariff Heading **2710** covers:

<div id="bkmrk-%E2%80%8Bpetroleum-oils-and-"><p class="callout info">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.</p>

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</div>#### **2 Relevant Agreement and Annex**

Applicable legal reference:

- **EU-UK Trade and Cooperation Agreement (TCA)**, Title I - *Rules of Origin* (Part Two, Heading One, Chapter 2).
- **Annex ORIG-2** - *Product-Specific Rules of Origin.*

<div id="bkmrk-">  
</div><div id="bkmrk-3-product-specific-r">#### **3 Product-Specific Rule (PSR) for HS 2710**

From Annex ORIG-2, the rule for heading 2710 reads:

<div style=" padding: 0px; margin: 0px 0px 10px; color: rgb(51, 51, 51); font-family: Roboto, "Segoe UI", GeezaPro, "DejaVu Serif", "sans-serif", -apple-system, "system-ui"; font-size: 14px; font-style: normal; font-weight: 400; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; background-color: rgb(255, 255, 255);"><div><p class="callout info">"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."</p>

</div></div><div id="bkmrk-4-interpretation-non">####   


#### **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.

<div>  
</div><div>#### **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.

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</div><div>#### **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.

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</div><div>#### **7 Origin Verification Process**

1. **Classify the product** under CN 2710.
2. **List all inputs** with tariff headings and origin status.
3. **Calculate the ex-works price** of the finished product.
4. **Determine total value of non-originating inputs**.
    
    
    - If ≤ 40% of ex-works price = condition satisfied.
5. **Ensure that no non-originating material of heading 2710 is used**.
6. **Confirm that the transformation changes the tariff heading** (CTH achieved).

If all criteria are met, the product acquires **EU or UK originating status**.

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</div><div>#### **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).

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</div><div>#### **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.

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</div><div>#### **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.

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</div>#### 11. Responsibilities

<table class="e-rte-table" style="width: 100%; min-width: 0px;"><tbody><tr><td class="" style="width: 50%;"><table class="e-rte-paste-table"><thead><tr><th>**Role**</th><th>**Responsibility**</th></tr></thead><tbody><tr><td class="">**Customer / Customer Services**</td><td>Classify goods, verify origin, and issue Statements on Origin.</td></tr><tr><td class="">**Customer Services**</td><td>Obtain supplier origin statements and maintain material origin database.</td></tr><tr><td class="">**Customer**</td><td>Provide ex-works price and input value data for origin calculations.</td></tr><tr><td>**Customs Compliance**</td><td>Maintain origin records, monitor cumulation use, and conduct internal audits.</td></tr><tr><td>**Management**</td><td>Ensure compliance with TCA requirements and training of staff.</td></tr></tbody></table>

  
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#### 12. Summary Table - Tariff Heading 2710 under EU-UK TCA

<table class="e-rte-table" style="width: 100%; min-width: 0px; height: 329px;"><tbody><tr style="height: 99.696%;"><td style="width: 33.3333%;"><table class="e-rte-paste-table"><thead style="height: 7.90274%;"><tr style="height: 7.90274%;"><th>**Element**</th><th>**Requirement**</th></tr></thead><tbody><tr style="height: 7.90274%;"><td>**Tariff Heading**</td><td>2710</td></tr><tr style="height: 7.90274%;"><td>**Rule Type**</td><td>Value rule + Exclusion rule</td></tr><tr style="height: 7.90274%;"><td>**PSR Requirement**</td><td class="">Non-originating materials ≤ 40% of ex-works price; no non-originating 2710 inputs</td></tr><tr style="height: 7.90274%;"><td>**Cumulation**</td><td class="">Bilateral (EU-UK)</td></tr><tr style="height: 7.90274%;"><td>**Sufficient Processing Example**</td><td>Refining crude oil (2709 -&gt; 2710)</td></tr><tr style="height: 7.90274%;"><td>**Minimal Operations (Excluded)**</td><td>Simple mixing, blending, dilution, packaging</td></tr><tr style="height: 7.90274%;"><td>**Proof of Origin**</td><td>Statement on Origin (Annex ORIG-4)</td></tr><tr style="height: 7.90274%;"><td>**Retention Period**</td><td>Minimum 3 years</td></tr><tr style="height: 7.90274%;"><td>**Main Reference**</td><td class="">Annex ORIG-2 of EU-UK TCA</td></tr></tbody></table>

  
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### **14. Conclusion**

<div>  
</div>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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