Rules of Origin
The next most important trade policy instrument which will affect all UK manufacturers are Rules of Origin. Currently, the movement of goods within the EU Customs Union is not based on where they originate but their compliance with free circulation inside the Single Market. For the customs clearance of goods after the UK exits the EU, specific rules of Origin become necessary to determine the economic nationality of a product entering to and from the EU, and the UK. Given it is not easy to determine where a product comes from when raw materials and parts are sourced and manufactured often in different locations across the world within any one supply chain, a set of rules will need to be agreed between the UK and the EU to determine a single nationality of each product crossing each other’s borders.