Colm Burke (Cork North Central, Fine Gael)
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193. To ask the Minister for Finance the steps being taken to resolve the issues being experienced by importers of used cars from the UK in respect of proving the preferential origin of cars manufactured in the UK prior to 2021; and if he will make a statement on the matter. [44950/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that it has been engaged with industry representatives in relation to this matter and that it has provided guidance and advice as to the process by which the necessary proof of origin requirements in relation to the import of used cars from the UK can be satisfied. Importers of second-hand cars from the UK into Ireland can claim a preferential tariff rate under the EU-UK Trade and Cooperation Agreement (TCA) where they can provide proof that the goods they are importing are of UK preferential origin as required by the Rules of Origin in the Agreement.

The proofs required by Revenue include a ‘statement on origin’ from the UK exporter on an invoice or any other document that describes the car in sufficient detail to identify it. Importers requesting the issue of a ‘statement on origin’ by an exporter must satisfy themselves that the exporter will be able to provide supporting documents if requested by UK customs. Alternatively, a claim for a preferential tariff rate may be made on the basis of supporting documents, or records provided by the exporter or manufacturer which are in the importer’s possession. These documents proving the originating status of the car must be available for inspection by Revenue if requested. They must be retained for a period of 3 years from the date of importation.

Under the TCA rules of origin for a UK originating car that is not a hybrid or electric, the value of non-originating material in the production of a car must not exceed 45% of the ex-works price of a car. Alternative product-specific rules of origin apply for electrified and hybrid vehicles with both internal combustion engine and electric motor as motors for propulsion. For these cars, until 31 December 2023, the value of non-originating material used in the production of the car must not exceed 60% of the ex-works price of the car, and from 1 January 2024 until 31 December 2026, the value of non-originating material used in the production of the car must not exceed 55% of the ex-works price of the car.

The proofs required for preferential origin in the TCA are the same as the proofs required in other trade agreements that the EU has entered into, and generally come from the exporter, via the car supplier or manufacturer. Where the supplier/manufacturer provides the exporter with the information necessary to determine the originating status of car, the supplier can do so by means of a ‘supplier's declaration’. Where the information is not provided by the supplier, the exporter can supply other evidence or supporting documents coming from other sources insofar as they contain the necessary information. Such information can include:

- a description of the originating and non-originating materials used in the production process

- the value of the product as well as the value of all the non-originating and/or originating materials used in the production.

I am advised by Revenue that the documentation presented at importation in each instance needs to provide clear assurance as to the origin of a second-hand car being imported. This evidence is assessed by Revenue on a case by case basis and it is not possible to provide approval either on the basis of specific manufacturers or vehicle types.