Tariff suspension scheme
Following Brexit, the UK is now free to decide for itself how duty should be applied to goods that arrive in the UK from abroad. Armed with this ability, the Department for International Trade (DIT) in conjunction with HMRC have just announced that the UK is to launch its own tariff suspension scheme, designed to help UK businesses to be more competitive.
The aim of the suspension is to relieve Duty on goods which are needed for a production process in the UK but are either not produced in the UK and there is no suitable substitute or if they are produced in the UK, they are not produced in sufficient quantities for the business (either temporarily or permanently) and as such need to be imported and therefore incur Duty (where applicable). This will be welcome news for businesses that import goods which are currently subject to Customs Duty and where those goods are not produced in the UK. If a business can demonstrate that they would have saved more than £10,000 Duty if the suspension had been in place in 2020 (or 2019 if there was limited trading due to Covid 19 in that year) it can apply for full or partial suspension of duty where the criteria set down are met.
Further information can be found here.
- application forms must be submitted between 1 June and 31 July 2021
- suspensions are only available to UK based businesses (or Crown Dependencies)
- other businesses will have the opportunity to object to the suspension as part of the process although this may not impact the decision
- once applications meeting the criteria have been approved the suspension will apply from early 2022 until summer 2024, with the potential for reapplications thereafter.
Clearly, this measure could assist in making a UK business more competitive in its market sector and result in a worthwhile saving, hence you should look into the possibilities here and seek assistance from a duty specialist to maximise the opportunity.
Kreston Reeves have specialists who can advise on Duty and other Customs and VAT issues you may have. Contact us here.
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