These Regulations, made by the Treasury with the recommendation of the Secretary of State under powers granted by the Taxation (Cross-border Trade) Act 2018, amend existing 2020 regulations to update the Republic of Korea Free Trade Agreement documentation.
Specifically, the amendment replaces the reference in Schedule 1 to the applicable origin reference document with version 1.3, dated 31st October 2025, to give effect to an exchange of notes between the UK and South Korea concerning the extension of cumulation of origin and direct transport provisions related to the European Union, and they come into force on 31st December 2025, extending across the whole of the UK.
Arguments For
Facilitates ongoing alignment and technical updates required for the UK-Republic of Korea Free Trade Agreement (FTA).
Ensures that UK customs procedures correctly reflect the currently agreed-upon terms, specifically regarding the cumulation of origin and direct transport provisions that incorporate the European Union's status under the agreement.
Provides legal certainty for businesses engaged in trade between the UK and South Korea by enacting the latest agreed-upon technical documentation (version 1.3 of the Origin Reference Document).
Arguments Against
Modifies existing statutory instruments, potentially creating minor administrative burdens for customs brokers or traders who must update their compliance systems to reference the new document version.
The amendment necessitates scrutiny to confirm that the specified change regarding EU-related cumulation provisions correctly reflects the UK's post-Brexit trade relationship framework with the Republic of Korea.
The use of an Exchange of Notes suggests an administrative adjustment rather than a major legislative overhaul, potentially masking deeper complexities in the updated rules of origin.
These Regulations are made by the Treasury in exercise of the powers conferred by sections 9(1), 17(6) and (7) and 32(7) and (8) of the Taxation (Cross-border Trade) Act 2018 (“the Act”).
The Treasury created these Regulations by using specific powers granted under sections 9(1), 17(6), (7), and 32(7), (8) of the Taxation (Cross-border Trade) Act 2018, which is referred to as 'the Act'.
Further to sections 9(3) and 17(8) of the Act, the Secretary of State recommends that these Regulations be made.
The Secretary of State formally endorsed and advised that these specific Regulations must be established, acting in accordance with procedural requirements detailed in sections 9(3) and 17(8) of the Act.
Further to section 28 of the Act, the Treasury, in exercising the function of making these Regulations and the Secretary of State, in making recommendations about these Regulations, have had regard to the international arrangements to which His Majesty’s government in the United Kingdom is a party that are relevant to the exercise of those functions.
When creating and recommending these Regulations, both the Treasury and the Secretary of State considered relevant international agreements to which the UK government is a signatory, as required by section 28 of the Act.
Citation, commencement and extent
1.
This section provides the official title, the date the rules become effective, and the geographic areas to which these regulatory changes apply.
These Regulations—
The following points detail the specific effects of this statutory instrument regarding its title, start date, and jurisdiction.
may be cited as the Customs Tariff (Preferential Trade Arrangements) (Amendment) Regulations 2025;
The official short title for these legal rules is the Customs Tariff (Preferential Trade Arrangements) (Amendment) Regulations 2025.
come into force on 31st December 2025;
The rules legally take effect on the final day of the year 2025.
extend to England and Wales, Scotland and Northern Ireland.
These regulations apply legally across all constituent countries of the United Kingdom: England, Wales, Scotland, and Northern Ireland.
Amendment of the Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020
2.
This section details the specific changes made to the previous statutory instrument concerning preferential trade arrangements made after leaving the European Union, specifically the 2020 Regulations.
The document modifies the table located in Schedule 1 of the 2020 Customs Tariff Regulations, which lists the trade agreements these rules govern.
The amendment follows in the subsequent text.
In the row relating to the Free Trade Agreement between the United Kingdom of Great Britain and Northern Ireland and the Republic of Korea, for the entry in the third column, substitute—
“The Republic of Korea Origin Reference Document, version 1.3, dated 31st October 2025.”.
The entry in the third column of the relevant table row, which concerns the UK-Republic of Korea Free Trade Agreement, is being replaced.
The new requirement specifies using 'The Republic of Korea Origin Reference Document, version 1.3, dated 31st October 2025'.
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