The rules of preferential treatment are set out in the trade agreement. Preferential treatment is given to goods originating in the EU or the UK according to 4 key criteria:
- Fully harvested in the UK /EU (applies in particular to agricultural products).
- Change of product (commodity) code. (e.g. processing aluminium into a car engine).
- Change of added value / cumulation (at least 50% increate in value at the last treatment / processing of the product).
- The treatment process on goods must take place in the UK / EU (e.g. for chemicals, the chemical process must take place on the EU or UK territory).