One of those measures is HMRC’s recently published new UK Global Tariff (UKGT) regime. This Tariff will replace the EU’s Common External Tariff (EU CET) at the end of the Transition Period on 1st January 2021.
The UKGT has been tailored to the needs of the UK economy, making it easier and cheaper for businesses here to import goods from overseas. You will not only benefit from a lower tax regime, but also from reduced red tape and barriers to trade.
The UK Global Tariff will apply for any goods being imported into the UK from any country, with the exception of those that have concluded Free Trade Agreements with the UK already, provided that the products meet the relevant rules of origin and qualify for preferential duty rates.
Certain products will be completely tariff-free under the new regime, whilst others will be subject to a reduced tariff.
So what does this mean for you? What do you need to do next?
We’re almost halfway through the year, and the 1st January 2021 will be here before we know it. There are a number of proactive steps you can take to ensure your business is ready to capitalise on the opportunities presented by the new Tariff:
- Review your current commodity codes
- Prepare for a system update where your ERP system holds classification information
- Check your commodity codes still exist in the new Tariff
- Check which codes are most applicable to your products
- Review the duty rate for the goods
- Consider contractual obligations in relation to price
- Do you need to consider a BTI if your products have gone from a positive rate of duty to a potential nil rate of duty?
- Consider if your CCG is accurately positioned to reflect these changes
- Review any HMRC Authorisations held whereby the classification forms part of the approval (such as Customs Warehouse).
If you’d like to discuss these changes, and how they may affect your business, we’d be happy to have a chat. You can get in touch with us at: email@example.com.