UK to roll out independent tariff suspension scheme

Tariffs on some imported goods will be partially or wholly suspended to help UK firms become “more globally competitive”, it has been revealed.

The new scheme, announced this week by the Department for International Trade (DIT), will allow companies to ask for duties to be withdrawn for a set period – effectively lowering overall production costs.

As the UK is no longer a part of the EU, the Government said it now has the power to establish an independent tariff regime and the authority to decide how duties should be applied.

Tariffs could be suspended under previous trading arrangements, but only if agreed upon by all 27 EU Member States.

The guidance confirms that once a suspension has been introduced, all UK importers will be able to benefit from the reduced rate.

The duty suspensions will apply to unlimited quantities of a wide range of goods imported to the UK, but not chargeable duties such as VAT or the anti-dumping duty.

As part of the launch of this scheme, the Government also confirmed that existing duty suspensions rolled over from the EU will be extended beyond 31 December 2021 to “ensure business certainty”.

Commenting on the report, Greg Hands, Minister for Trade Policy, said: “Now we have left the EU we can use suspensions to give UK firms the maximum possible benefit.

“This suspensions scheme will be accessible to importers across the country, and those that are granted will benefit entire sectors.

“They will lower costs and help our superb producers pack even more of a punch when they compete on the global stage.”

For help and advice on related matters, please get in touch with our Partner Heather Bright on 01775 711333 or at heather@mooret.co.uk.

Posted in Blog, Economy.