UK global tariff
The UK Global Tariff (UKGT) will apply from January 2021 and, if no Free Trade Agreement is reached with the EU, these are the tariffs that will apply to EU goods imported into the UK.
During the Brexit transition period, until 31 December 2020, the EU Common External tariff continues to be applied to goods imported into the UK.
Once the transition period is over, the UKGT will apply to goods imported into the UK from countries which the UK does not have a Free Trade Agreement and not covered by any other exemption.
Analysts reviewing the Border Operating Model released in July have uncovered indications that May’s UKGT may not be the final operational version.
The Border Operating Model confirms that “The tariffs applicable to UK importers will be published…when they are finalised and before implementation”. Which suggests, perhaps unsurprisingly, that the UK’s tariffs are part of the negotiation tactics and are unlikely to be the final version, until the outcome of the trade negotiations are known.
It is still critical that businesses work with the best information available to prepare their Brexit modelling and understand the impact of the new UK Global Tariff on goods imported into the UK from 1 January 2021.
The UKGT includes a UK applied Most Favoured Nation tariff schedule that is intended to apply to all countries by default, although this may change with respect to EU countries depending on the deal reached by the UK with the EU.
The UKGT will not apply to:
– Countries that the UK has a trade deal with
– Countries that are part of the UK Generalised Scheme of Preferences (more information on this can be found HERE)
– Where an exception applies, such as relief or tariff suspension.
Check the tariffs that will apply to goods you import when the UK Global Tariff takes effect on 1 January 2021 – https://www.gov.uk/guidance/uk-tariffs-from-1-january-2021
For further information and advice on our Brexit brokerage solutions, please contact Grant Liddell or Chris Carlile for assistance.