First and foremost, we hope that anyone reading this is keeping healthy and safe amidst everything going on in the world at the moment. The COVID-19 crisis has become all that anyone can think about and it becomes very easy to lose sight of other matters that may affect us on the very near horizon. As it currently stands, all the Brexit dates and deadlines are proceeding as originally planned and The Government has announced the UK’s new MFN tariff regime (The “Most Favoured Nation” or “MFN” rates are the tariffs that countries promise to impose on imports from other members of the World Trade Organisation, unless the country is part of a preferential trade agreement), the UK Global Tariff (UKGT). This will replace the EU’s Common External Tariff on 1 January 2021 at the end of the Transition Period the UK is currently in.

The Government is advising to be taking a “common-sense” approach to the new tariff schedule by streamlining and simplifying nearly 6,000 tariff lines and lowering costs for businesses by reducing administrative burdens. The changes include scrapping unnecessary tariff variations, rounding tariffs down to standardised percentages, and getting rid of all “nuisance tariffs” (those below 2%).

The Government is maintaining tariffs on several products backing UK industries such as the agriculture, automotive, fishing and ceramic industry. Tariffs have been maintained and not changed for a large majority of ceramic products.

Some tariffs are also being maintained to support imports from the world’s developing and emerging economies that benefit from preferential access to the UK market.

For Turkey, the UK’s intention is to continue with zero tariff trade on all goods currently traded in the EU-Turkey Customs Union, by implementing a UK-Turkey Free Trade Agreement by the end of 2020.

As the UK Global Tariff will come into force on 1 January 2021, it is important that businesses can familiarise themselves with the new tariff regime ahead of this date.

Should you require any assistance with any tariff code or any further information please just drop us a line on brexit@banksandlloyd.com and we will be glad to assist.

Contact our Brexit Team