Temporary tariff regime for no deal Brexit published

Government has published details of the UK’s temporary tariff regime for no deal, designed to minimise costs to business and consumers while protecting vulnerable industries.

Government has this morning (Wednesday 13 March) published details of the UK’s temporary tariff regime for no deal, designed to minimise costs to business and consumers while protecting vulnerable industries. The government is publishing this approach ahead of the vote in Parliament on No Deal to ensure MPs are fully informed.

This regime is temporary, and the government would closely monitor the effects of these tariffs on the UK economy. It would apply for up to 12 months while a full consultation and review on a permanent approach to tariffs is undertaken.

British businesses would not pay customs duties on the majority of goods when importing into the UK if we leave the European Union without an agreement.

Under the temporary tariff, 87% of total imports to the UK by value would be eligible for tariff free access.

Tariffs would still apply to 13% of goods imported into the UK. This includes:

  • a mixture of tariffs and quotas on beef, lamb, pork, poultry and some dairy to support farmers and producers who have historically been protected through high EU tariffs
  • retaining a number of tariffs on finished vehicles in order to support the automotive sector and in light of broader challenging market conditions. However, car makers relying on EU supply chains would not face additional tariffs on car parts imported from the EU to prevent disruption to supply chains
  • in addition, there are a number of sectors where tariffs help provide support for UK producers against unfair global trading practices, such as dumping and state subsidies. Tariffs would be retained for these products, including certain ceramics, fertiliser and fuel
  • to meet our long-standing commitment to reduce poverty through trade, the government currently offers preferential access to the UK market for developing countries. To ensure that access for developing countries is maintained, we would retain tariffs on a set of goods, including bananas, raw cane sugar, and certain kinds of fish

Trade Policy Minister George Hollingbery said:

Our priority is securing a deal with the European Union as this will avoid disruption to our global trading relationships. However, we must prepare for all eventualities.

If we leave without a deal, we will set the majority of our import tariffs to zero, whilst maintaining tariffs for the most sensitive industries.

This balanced approach will help to support British jobs and avoid potential price increases that would hit the poorest households the hardest.

It represents a modest liberalisation of tariffs and we will be monitoring the economy closely, as well as consulting with businesses, to decide what our tariffs should be after this transitional period.

The government has also confirmed today that it will take a temporary approach to avoid new checks and controls on goods at the Northern Ireland land border if the UK leaves the EU without a deal. The UK’s temporary import tariffs will therefore not apply to goods crossing from Ireland into Northern Ireland.

These tariffs would apply equally to all other trading partners, except for those where we have a free trade agreement in place and around 70 developing countries that will benefit from preferential access to our market.

The government will lay the appropriate legislation in light of the outcome of the vote on no deal today.

Notes for editors

  • It is not possible to leave things as they are:
    • If we maintained our current external tariff regime and applied it to the EU, this would impose new tariffs on EU imports, driving up prices for consumers and disrupting business supply chains.
    • If we fully maintained zero tariffs with the EU, we would also have to extend this to the rest of the world due to WTO rules. This would minimise disruption to EU trade but would open the UK to competition from other countries including those with unfair trading practices.
  • Businesses can find more information about our temporary tariff regime here.
  • The UK’s temporary tariff regime does not affect our ability to implement trade remedies measures to protect UK businesses from unfair trading practices such as ‘dumping’. The UK will retain 43 existing EU trade remedies measures which involves applying additional tariffs to imports from specific countries.
Published 13 March 2019
Last updated 13 March 2019 

Check temporary rates of customs duty on imports after EU Exit

How to find the temporary rates of customs duty on imports if the UK leaves the EU with no deal.

This approach was outlined by the Prime Minister in the House of Commons on 12 March 2019 to ensure MPs are fully informed before the vote on No Deal on 13 March 2019.

This information includes the government’s approach to customs duty, which is a tax you pay when importing goods. The rate of customs duty you pay is known as the ‘tariff’.

If the UK leaves the EU with no deal, you may need to pay different rates of customs duty on imports. These rates would only be applied if the UK were to leave the EU with no deal.

The UK government would set temporary rates which would:

  • apply from 11pm on 29 March 2019 (may also apply to new exit date on 31 December 2020)
  • be in place for up to 12 months from 29 March 2019 (may also apply to new exit date on 31 December 2020)

Check current rates of customs duty

If you import goods before 29 March 2019 (may also apply to new exit date on 31 December 2020) you should use the UK Trade Tariff tool to look up:

  • commodity codes
  • customs duty
  • VAT rates

Commodity codes classify goods for import so you can:

  • fill in declarations and other paperwork
  • check if there’s duty or VAT to pay
  • find out about duty reliefs

Check temporary rates of customs duty if the UK leaves the EU with no deal

The UK Trade Tariff tool would be updated with the new customs duty rates if the UK were to leave the EU without an agreement. These rates would apply from 11pm on 29 March 2019 (may also apply to new exit date on 31 December 2020).

To find out what these rates would be ahead of the tool being updated:

  1. Use the UK Trade Tariff tool to find the commodity codes for your goods.
  2. View the temporary rates of customs duty on imports after EU Exit.
  3. Find out whether a preferential tariff rate, MFN tariff rate or tariff quota rate applies by searching for the good using the commodity code.

If you need to pay customs duty, the rates could vary depending on where you import your goods from.

Preferential tariff rate

A preferential tariff rate would apply if the country:

If a preferential tariff rate applies, this is the rate of customs duty you would pay.

Most-favoured-nation (MFN) tariff rate

If a preferential tariff rate does not apply, this is the rate of customs duty you would pay.

Tariff quota rate (TRQ)

If a tariff quota rate applies, you could apply to import a limited amount at a reduced rate of customs duty. You would need to claim for the tariff rate quota using the TRQ order number.

Find out more about tariff quotas.

Contact HMRC if you still have a question about UK imports after EU Exit.

Published 13 March 2019
Loader Loading...
EAD Logo Taking too long?

Reload Reload document
| Open Open in new tab

Download [20.98 MB]

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/785554/Tariff_Reference_Document_12_March_2019.pdf

Contact McMahon Legal 

    Share this article