The temporary tariff announced yesterday, which would go into place after 29th March if there is a no-deal Brexit, includes increases to ‘sensitive’ products, to protect selected UK sectors.
Goods from the EU are currently tariff-free, but in the case of a no-deal Brexit, World Trade Organization taxes would have been the default position without this intervention.
If we leave without a deal, the majority of import tariffs will be set to zero, whilst maintaining tariffs for the most sensitive industries, confirmed the government in a statement.
This ‘balanced’ approach is intended to support British jobs and avoid potential price spikes.
Tariffs on finished vehicles would be retained, though car makers (and other manufacturing sectors) relying on EU supply chains would not face additional tariffs on parts imported from the EU to prevent disruption to supply chains.
These temporary tariff guidelines could stay in place for as long as a year as Parliament figures out a tariff structure it is willing to approve.
The guidelines would not apply to goods passing from Ireland into Northern Ireland. The U.K. said it will “not introduce any new checks or controls on goods” moving between these two countries. The U.K. will work with the EU and Ireland on longer-term plans to avoid a hard border.
We would recommend following this link to the Gov.UK site – Customs duty on imports after EU Brexit – and check the classification codes for your imports, so you can see what the prevailing rates of duty will apply if no-deal Brexit prevails.
Please contact us directly if you think you may be impacted by these development and have concerns or questions.