THE BUSINESS OF INTERNATIONAL TRADE
THE BUSINESS OF INTERNATIONAL TRADE
The UK has set out the new independent tariff suspension scheme to support UK businesses. UK companies can apply from 1st June 2021 for the removal of import customs duties on goods where there is a genuine case that paying these duties put the UK business industry in a negative position. The new scheme will allocate suspensions based on the needs of firms in the UK and the wider economy, on any import that satisfies the selection criteria set out on GOV.UK.
Duty suspensions for products which previously existed in the UK under the EU suspensions regime have been carried over into the UK’s independent regime. They have been retained, provided they came into force before, or as part of, the EU’s July 2020 update to ensure continuity for UK businesses.
A number of EU Autonomous Tariff Quotas (ATQs) have also been transitioned into tariff suspensions in the UK’s independent suspensions regime. This means that there is no volume limit for the reduced rate applied to these goods. This includes some fish products, which previously had ATQs applied to them under the EU regime.
All current duty suspensions rolled over from the EU regime, including EU ATQs changed to duty suspensions, will be extended beyond 31 December 2021. This will not apply where the UK Global Tariff (UKGT) rate is already 0%. As such, there is no need to apply for these during the 2021 application window. All current ATQs – 5 on fish and one on raw cane sugar – will be reviewed separately.
The UK government implemented tariff suspensions on a number of medical items critical in the response to COVID-19 on 1 January 2021. These suspensions apply for an initial period of 12 months subject to review. All products listed by the World Health Organization in June 2020 as COVID-19 critical are able to enter the UK tariff free. These tariff suspensions will be reviewed ahead of their expiry on 31 December 2021 to determine whether they are still required:
The 2021 window to apply for a duty suspension will open on 1 June 2021 and will close on 31 July 2021.
To apply, you should be based in the UK or a Crown Dependency (Jersey, Guernsey, Isle of Man).
Additional application windows will open in 2022. More information will be made available in due course.
To read all additional information, click here.
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