New Custom tariff consultation by the government

The Department for International Trade (DIT) has launched a public consultation to propose a new UK customs tariff, which will be implemented after the Brexit transition period which is planned to be ending on 31 December 2020. The consultation will be closed on Thursday 5 March 2020 and followed by an announcement sometime after about the new tariff.

DIT has asked participants to propose changes on the existing tariff for the draft of the new tariff which has not yet been published.

UK Global Tariff

The implementation of new proposed tariff “UK Global Tariff” is necessary as the UK is still part of the EU’s tariff which currently applies to all the imports in the EU which includes the UK at the moment. The UK global tariff will set out duty rates which will be applied to goods coming into the UK after the proposed transition period ending on 31 December 2020.

The UK Global Tariff will be UK’s World Trade Organisation (WTO) tariff but the new tariff will have special duty rates for the countries and goods, where the UK has negotiated free-trade agreements or agreed to reduce tariff-quota.

The government is proposing to simplify the tariff which includes rounding duty rates down to the nearest uniform band such as 11.7% will be reduced to 10%. However, the complex system for classification of goods for commodity codes cannot be simplified as it is controlled by the WTO.

What this means for UK businesses

All the businesses who deal with intra-EU transfer of goods know the reality of the UK leaving the EU: the customs controls and checks are not ready to handle the change. However, as a surprise there might be as easement for goods coming from the EU.

Garbutt & Elliott will blog on the changes as and when announced by the government.

If you have any queries about these changes please contact Naveen Sahney (VAT + Custom Duties Advisor) at