Last week HMRC published the UK Global Tariff. This Tariff will replace the EU’s Common External Tariff on 1st January 2021 at the end of the Transition Period.
The UK Global Tariff has been tailored to the needs of the UK economy by making it easier and cheaper for businesses to import goods from overseas. It is a simpler, easier to use and lower tariff regime than the EU’s Common External Tariff (EU CET) and will be in pounds (£), not euros. It will scrap red tape and other unnecessary barriers to trade, reduce cost pressures and increase choice for consumers and back UK industries to compete on the global stage.
The Government is taking a common-sense approach to the new tariff schedule by streamlining and simplifying nearly 6,000 tariff lines, and lowering costs for businesses by reducing administrative burdens. The changes include scrapping unnecessary tariff variations, rounding tariffs down to standardised percentages and getting rid of all “nuisance tariffs” (those below 2%).
The UK Global Tariff Tool can be found at https://www.gov.uk/check-tariffs-1-january-2021
What does this mean for you and what do you need to do?
- Review your current commodity codes
- Prepare for a system update where your system holds classification information
- Check your commodity codes still exist in the new Tariff
- Check which codes are most applicable to your products
- Review the duty rates for goods being imported
- Consider contractual obligations in relation potential duties and price
- Consider if your Customs Comprehensive Guarantee accurately reflects any changes that impact your business
- Review HMRC Authorisations held if classification forms part of the approval (such as Customs Warehouse).
If you need to discuss these changes any further and how they may affect your business please contact your usual Streets contact or email email@example.com