Open Consultation on UK Global Tariff – deadline to reply is 5 March 2020
25 Feb 2020
A Government consultation was launched on 6 February 2020 on the UK’s external tariff schedule when the transition period ends in December 2020. The closing date for input into the consultation is 5 March 2020.
The UK will be adopting the EU applied tariff schedule as a starting point but the changes being explored by the Government may impact your company. To clarify there is no intention to introduce the Zero-rated Temporary Tariff Schedule that was mooted for “no deal” last year.
Some of the mooted proposals in the consultation include:
- Removal of nuisance tariffs (under 2.5% – which will make a large number of products zero rated)
- Standardising tariff bandings (essentially rounding down tariff rates to bands)
- Removing tariffs on goods where there is no UK production
- Removing tariffs on all intermediate goods (if not alleviated by “nuisance tariffs”).
While there are clear economic input cost benefits to this for a number of UK Sectors, 2050 ambitions etc. and some manufacturers, there are obvious conflicts here to consider as well. Will removal of low tariffs impact competition and imports? and the relationship between these measures and FDI.
This will not apply to trade with the EU if the UK secures a Zero tariff FTA by December.
Please visit the website below for more information and to input into the consultation: