FCA Incoterm (Free Carrier) Explained: A UK Guide
09/07/2026
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What is FCA? FCA, Free Carrier, is an Incoterm where the seller delivers goods to a carrier nominated by the buyer, at a named place.
What is an EUR1 certificate?
An EUR1 movement certificate is an official document that proves goods originate in the UK to claiming preferential tariff treatment under the UK-EU Trade and Cooperation Agreement (TCA). When your EU customer presents a valid EUR1 to their customs authority, they can import your goods at 0% duty instead of the standard MFN rate, saving real money on every shipment.
If you are new to shipping UK goods into the EU, the EUR1 is one of the first trade documents you need to understand. Get it right and your buyer avoids import duty. Get it wrong, or skip it entirely, and your buyer pays full tariffs, which will very quickly become your commercial problem.
An EUR1 is a movement certificate, not a general certificate of origin. The distinction matters. A standard certificate of origin tells an importer where goods were made. An EUR1 goes further: it proves the goods meet the specific origin rules set out in a trade agreement, which is what qualifies them for a preferential (reduced or zero) duty rate.
In UK-EU trade, the relevant agreement is the Trade and Cooperation Agreement (TCA), which came into force on the 1st of January 2021. Under the TCA, qualifying UK-origin goods can enter the EU at 0% import duty. The EUR1 is one of the documents an EU buyer can use to claim that preference at their customs authority.
HMRC issues EUR1 certificates for UK exporters. You complete the form, HMRC endorses it, and it travels with your goods to the EU. The EU customs authority accepts it as evidence of UK origin.
The certificate is a standardised green-and-white form recognised across all EU member states.
You need an EUR1 when all three of the following apply:
If your goods do not qualify as UK-origin under the TCA, you cannot get a valid EUR1. And if your buyer is not claiming preferential treatment, the EUR1 is not needed, though they will pay the standard MFN rate. There are alternatives covered below, but when an EUR1 is needed, only HMRC can issue one.
Before Brexit, UK businesses traded within the EU single market. There were no tariffs on intra-EU trade and no need for movement certificates between UK and EU countries. The EUR1 existed for UK exports to third countries: for example, under EU trade agreements with countries like Algeria, Morocco, or Turkey, but not for UK-EU trade itself.
That changed on the 1st of January 2021. The UK left the EU customs union and single market. From that date, goods moving from the UK to the EU became subject to EU import procedures and, without the right documentation, standard MFN tariffs.
The TCA prevents that for qualifying goods. It sets a zero-tariff arrangement between the UK and EU, but only for goods that genuinely originate in the UK. The EUR1 is the document that proves it.
Without a valid origin document, your goods are assessed at the standard MFN tariff rate, 3–6% for many categories, and majorly higher for some agricultural, textile, and processed goods.
New shipping coordinators often confuse these two. They serve different purposes.
| EUR1 Movement Certificate | Standard Certificate of Origin | |
|---|---|---|
| Purpose | Claims preferential tariff treatment under a specific trade agreement | Declares the country of manufacture for general import/export purposes |
| Issued by | HMRC (endorsed) — official government document | Chamber of Commerce — often self-declared or certified |
| Triggers duty reduction | Yes — 0% under the TCA for qualifying UK goods | No — does not trigger any preferential rate on its own |
| Tied to a specific agreement | Yes — TCA (or other named agreement) | No — general statement of origin |
| Required for | EU buyers claiming TCA preference | Various trade, legal, and procurement purposes |
| Format | Standard EUR1 form, HMRC-endorsed | Varies by chamber and destination |
A standard certificate of origin does not give your buyer any reduction in import duty. Only a document that proves TCA origin, the EUR1 or an approved alternative like a REX statement, does that. If your buyer asks for a “certificate of origin” and wants a duty saving, clarify which document they actually need.
The EUR1 is not the only way to prove preferential origin under the TCA. There are three main options, and the right one depends on your shipment value and how often you export.
EUR1 Movement Certificate
The most formal option. HMRC issues and endorses it. Best for large or high-value shipments, or when the buyer’s customs authority specifically requires it. Requires HMRC involvement for each certificate.
Statement on Origin (low value)
A declaration made by the exporter on the commercial invoice or another commercial document. For shipments valued up to £5,500 (around €6,000), any UK exporter can make this declaration without pre-registration. For shipments above £5,500, you must be a Registered Exporter (REX) to make this statement.
REX, Registered Exporter Scheme
If you regularly export goods above £5,500 in value and those goods qualify as UK-origin, registering with HMRC’s REX scheme lets you make origin statements on your commercial invoice instead of applying for EUR1 certificates individually. REX is free to register and removes the need to go to HMRC every time.
| EUR1 | Statement on Origin (low value) | REX Declaration | |
|---|---|---|---|
| Shipment value | Any | Up to ~£5,500 | Any (once registered) |
| Who issues | HMRC | Exporter | Exporter (REX registered) |
| Pre-registration needed | No | No | Yes — register with HMRC |
| Best for | Large or one-off shipments | Small, low-frequency exports | Regular exporters |
For new exporters, the EUR1 is the safest default. As volumes grow, REX registration is worth considering.
This is the part that catches exporters off guard. You cannot simply apply for an EUR1 because your company is based in the UK. The goods themselves must originate in the UK under the TCA’s specific rules.
There are two main ways goods can qualify as UK-origin under the TCA:
Wholly got
Goods entirely produced or extracted in the UK with no foreign content: for example, honey from UK bees and UK flowers.
enough processing
Goods processed in the UK to a degree that qualifies under TCA product-specific rules. The most common tests are:
If your goods are wholly imported and simply repackaged or relabelled in the UK, they almost certainly do not qualify as UK-origin. HMRC can challenge a EUR1 if the goods do not genuinely meet the rules, and that can lead to back-duty claims on your buyer.
Before applying, check the TCA product-specific rules for your goods’ HS code at trade-tariff.service.gov.uk.
HMRC issues EUR1 certificates. The process involves completing the EUR1 form and submitting it to HMRC, either through your local Chamber of Commerce (which acts as an HMRC-authorised issuing body) or directly through HMRC in certain cases.
Step 1: Confirm your goods qualify
Verify your goods genuinely originate in the UK under TCA rules before anything else. Check your HS code against the product-specific rules. Do not apply if you are not certain, a false declaration can result in penalties for you and a back-duty bill for your buyer.
Step 2: get and complete the form
The EUR1 form is available from your local accredited Chamber of Commerce. Contact HMRC’s Customs and International Trade helpline on 0300 200 3700 if you are unsure of the correct route. You will need details of the exporter and importer, a goods description (including quantity and HS code), the country of origin, and the export declaration reference. The reverse of the form includes a legal declaration that the goods originate as stated, incomplete or inaccurate forms will be rejected.
Step 4: Submit for endorsement
Take the completed form to your Chamber. They will check it and, if satisfied, stamp and sign it. The endorsement is what makes the EUR1 legally valid.
Step 5: Send the original to your buyer
The endorsed EUR1 must be available to the EU customs authority at the point of import. Send the original, keep a copy for your records.
Step 6: Keep records
Keep copies of the EUR1, export declaration, and supporting evidence of origin for at least four years. HMRC and EU customs authorities can audit retrospectively.
Chamber of Commerce fees for EUR1 certificates typically range from £30 to £60.
The EUR1 form has a standard layout. The fields you will complete or check include:
The goods description in Box 8 must be specific. Vague entries like “general merchandise” will be rejected. Use the same wording as on your commercial invoice.
An EUR1 certificate is valid for four months from the date of endorsement. It must be presented to the EU customs authority within that window.
If the certificate expires before the goods arrive at EU customs: for example, because of shipment delays, the buyer will not be able to claim the preferential duty rate using that certificate. You would need to apply for a new one.
A few additional points on timing:
If goods you exported to the EU are later returned to the UK, you will generally need a returned goods relief claim on the UK import declaration, not an EUR1. The EUR1 is an export document, not a re-import document.
However, if the goods are being returned because the buyer could not claim preferential treatment: for example, the EUR1 was missing or expired, contact your customs broker for advice on the correct relief procedure. In some cases, a copy of the original outbound EUR1 may support the claim. Keep copies of all EUR1 certificates you get for this reason.
Not checking rules of origin first
The most serious mistake. If your goods do not genuinely originate in the UK under TCA rules, you cannot legally get an EUR1. Applying anyway is a false declaration, penalties for you, and an unexpected duty bill for your buyer.
Using an expired certificate
EUR1 certificates are valid for four months. If your shipment is delayed, check the expiry date before the goods arrive at EU customs.
Inconsistent document descriptions
The goods description on your EUR1 must match your invoice, packing list, and export declaration. Discrepancies, even minor ones, can cause EU customs to reject the preference claim.
Sending a copy instead of the original
EU customs require the original endorsed EUR1. Make sure the original reaches your buyer with the goods.
Not keeping records
Keep copies of every EUR1 and supporting origin evidence for at least four years. If you cannot show origin when challenged, your buyer faces a back-duty assessment.
Missing the retrospective deadline
You have up to 12 months to apply retrospectively. After that, the opportunity is gone.
Your EU buyer (or their customs agent) presents the EUR1 to the customs authority in their country when filing the import declaration. Here is what happens next:
The customs authority checks the certificate
They verify it is correctly completed, endorsed, within the four-month validity window, and that the goods description matches the accompanying documents.
Preferential duty rate is applied
If accepted, the 0% TCA rate is applied. The buyer pays no import duty on qualifying goods.
If the EUR1 is rejected
If the certificate is incomplete, expired, or inconsistent with the goods, the buyer is assessed at the standard MFN rate. A retroactive preference claim may be possible but is not guaranteed and requires additional paperwork.
Post-clearance audit
EU customs authorities can audit preference claims retrospectively. If an EUR1 is later found to be invalid, the EU authority can issue a back-duty demand to the importer, and that demand will typically find its way back to you.
A small UK manufacturer produces precision-engineered aluminium brackets. They export 500 brackets to a buyer in Germany, total invoice value £18,000.
The brackets are made in the UK from aluminium rod sourced partly from the UK and partly from Norway. The UK processing, cutting, drilling, anodising, changes the tariff classification of the raw material. The finished brackets meet the TCA “change of tariff heading” rule and qualify as UK-origin.
Without an EUR1, the German buyer would pay the EU’s standard MFN rate on aluminium articles of this type (HS heading 7610), around 3%. On £18,000 that is around £540. Across 20 shipments a year, that is more than £10,000 in avoidable duty costs.
The UK exporter contacts their Chamber of Commerce, completes the EUR1 form with the correct goods description, invoice reference, and HS code, and has it endorsed. The original is sent to the German buyer with the shipping documents.
The German customs agent presents the EUR1. The 0% TCA rate is applied. The buyer pays no import duty. The EUR1 cost the exporter around £40 in Chamber fees. The duty saving to the buyer was £540 on that shipment alone.
Do I need an EUR1 for every shipment to the EU?
Not necessarily. If your shipment is below around £5,500 in value, you can make a simple statement on origin on your commercial invoice without going to HMRC or a Chamber. Above that value, you need either an EUR1 or a REX declaration. If your buyer is not claiming preferential treatment, no origin document is needed, but they will pay full MFN duty.
Who issues EUR1 certificates in the UK?
HMRC or accredited Chambers of Commerce acting under HMRC authority. You cannot self-issue an EUR1, you must go through an authorised body.
How long does it take to get an EUR1?
Same-day or next-day processing is common for complete applications through a Chamber of Commerce. Allow more time for first applications or where goods descriptions need clarification. Do not leave it until the day of shipment.
What if I forgot to get an EUR1 before shipping?
You can apply retrospectively up to 12 months after export. Mark the certificate “ISSUED RETROSPECTIVELY.” Your buyer may be able to make a retroactive preference claim, but the process varies by EU member state, act quickly.
What is the difference between EUR1 and REX?
An EUR1 is a paper certificate issued by HMRC or an authorised Chamber for each individual shipment. REX (Registered Exporter) is a scheme that lets regular exporters make origin declarations directly on commercial invoices without a separate certificate. REX requires pre-registration with HMRC but removes the need to get a separate certificate for each shipment. Both show UK origin for TCA preference purposes.
My goods contain some non-UK materials. Can I still get an EUR1?
Yes, if the goods meet the product-specific rule for their HS code. Goods do not need to be 100% UK in content. The most common tests are a change of tariff heading during UK processing, or a maximum non-originating content threshold (MaxNOM). Check the TCA rules for your commodity code before applying.
This article is part of a learning path — return to explore more topics.
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