Post Brexit import tariffs published

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The Government has published its tariffs for the import of goods into the UK from 1 January 2021. The new regime aims to reduce costs and simplify the current system of import tariffs, whilst protecting some key UK sectors such as farming and car manufacturing.

With many tariffs set to be reduced or even zero rated from 1 January 2021, businesses and consumers could see a fall in the cost of certain goods – in particular, sustainable and environmentally friendly products.

Examples:

Commodity code 85399090 (Parts of electric filament or discharge lamps, sealed beam lamp units, ultraviolet or infra-red lamps, arc lamps and LED lamps, n.e.s.) currently has a EU import duty rate of 2.7%. Under the UK tariff from 1 January 2021, this has been “liberalised” and reduced to 0% duty.

Commodity Code 87042131 (Motor vehicles for the transport of goods, with compression-ignition internal combustion piston engine “diesel or semi-diesel engine” of a gross vehicle weight <= 5 t, of a cylinder capacity > 2.500 cm³, new (excl. dumpers for off-highway use of subheading 8704.10, special purpose motor vehicles of heading 8705 and special motor vehicles for the transport of highly radioactive materials) currently has an EU import duty of 22%, which will be reduced to 10% under the new UK tariff

Commodity code 94019030 (Parts of seats, of wood, n.e.s.) currently has a EU import duty rate of 2.7%, which will be simplified to 2%  under the new UK tariff.

Guidance on the new regime and a link to the full list of the tariffs can be found on the government website https://www.gov.uk/guidance/uk-tariffs-from-1-january-2021.

Businesses will need to get ready for the new regime, including understanding the impact of any cost changes and the new documentation requirements. Our Indirect Tax experts are here to help you manage the transition and have run a number of workshops on this topic. Please contact Ruth Corkin on ruth.corkin@hhllp.co.uk or 01908 713860.

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Ruth Corkin

Ruth has been involved with VAT for over 30 years. She started her VAT career as a Customs and Excise Officer in Essex and then moved into consultancy with a variety of well-known accountancy firms. She is well known in the VAT world and is the proud author of many articles and technical works.

Contact Ruth at ruth.corkin@hhllp.co.uk or on 01908 713 860