87% of Companies Don't Fully Use Their FTA Entitlements — Here's How to Find Your Savings
The EU's own data shows that average FTA preference utilisation is just 67%. That means one in three shipments that could enter at a reduced rate is paying full duty instead.
For a company importing £500K of goods per year at 10% MFN, that's £50K in duty that could be £0 — if they claimed the preference.
Why Companies Don't Claim FTA Preferences
- They don't know a preference exists — there are 60+ active trade agreements globally. Most importers know about 2-3 that affect their main routes.
- They think it's too complicated — Rules of Origin can be complex, but for manufactured goods, the test is usually straightforward.
- Their supplier doesn't provide the certificate — the exporter needs to issue a Statement on Origin or Form A. Many don't bother unless the buyer asks.
- The saving seems too small per shipment — 3% on a £2,000 shipment is £60. But multiply by 200 shipments/year = £12,000.
Real FTA Savings Examples
| Route | Product | MFN Rate | FTA Rate | Agreement | Saving per £10K |
|---|---|---|---|---|---|
| EU → UK | Car parts | 4.5% | 0% | UK-EU TCA | £450 |
| India → UK | Textiles | 12% | 0% | UK-India FTA | £1,200 |
| Vietnam → EU | Footwear | 17% | 0% | EVFTA | £1,700 |
| Japan → UK | Electronics | 0% | 0% | UK-Japan CEPA | None (already free) |
| Australia → UK | Wine | £26/hl | 0% | UK-Australia FTA | ~£300/hl |
| South Africa → UK | Citrus fruit | 16% | 0% | UK-SADC EPA | £1,600 |
| Chile → EU | Wine | €32/hl | 0% | EU-Chile | ~€400/hl |
How to Check If You Qualify
- Enter your HS code and route in our calculator — it automatically checks all 60+ trade agreements
- Look at the Rules of Origin — usually one of:
- Wholly obtained: the product was entirely grown/mined/produced in the exporting country
- Change in Tariff Heading (CTH): the product's HS heading changed during manufacturing
- Regional Value Content (RVC): a minimum % of the product's value was added in the FTA country (usually 40-55%)
- Ask your supplier for the origin certificate — they self-certify on the commercial invoice (most modern FTAs)
- Declare the preference on your customs declaration — cite the agreement code and attach the origin document
We scan 60+ trade agreements automatically. Enter your product and route — if a preferential rate exists, we show you the saving, the agreement, and what origin document you need. Takes 5 seconds.
653,000+ preferential rates across 60+ trade agreements. customs-compliance.ai