As explained in our previous blog post (see here), the UK Government announced its intention in 2019 to introduce a temporary tariff regime that would come into force in the event of a no deal Brexit. The regime was intended to apply for up to 12 months post the transitional period while the UK Government undertook a full consultation on a permanent approach to its Most Favoured Nation (MFN) tariff regime.
Following the ratification of the Withdrawal Agreement by both the EU and the UK, the UK Government announced on 6 February 2020 that this temporary tariff regime is no longer relevant.
Instead, the UK Government is now planning to develop a new MFN tariff schedule which will enter into force on 1 January 2021, and will be known as the “UK Global Tariff” (UKGT). The UKGT will replace the EU’s Common External Tariff and will apply to imports into the UK where the goods are not eligible for preferential treatment (e.g., under a Free Trade Agreement or UK GSP country).
As part of the UK Government’s planning to develop its post-Brexit tariff regime, the Department for International Trade has launched a four-week public consultation and will be holding a series of events across the UK to engage with businesses, business associations, consumers and other interested parties. As part of the consultation, the UK Government is seeking views in particular on the following areas: simplifying and tailoring the tariff to suit UK businesses and households, such as removing tariffs of less than 2.5% and rounding tariffs down to the nearest 2.5%, 5% or 10% band;
- simplifying and tailoring the tariff to suit UK businesses and households, such as removing tariffs of less than 2.5% and rounding tariffs down to the nearest 2.5%, 5% or 10% band;
- removing tariffs on key inputs to production in order to reduce costs for UK manufacturers; and
- removing tariffs where the UK has zero or limited domestic production in order to help to lower prices for consumers.
This consultation is currently open and will close on 5 March 2020 at 23:59 GMT.
Should you wish to review and consider a formal response, the consultation documents are available here.
Authors: Ross L. Denton, Sunny Mann and Kevin Nordin.
