UK govt announces post-Brexit MFN tariff regime

"For the first time in 50 years we are able to set our own tariff regime that is tailored to the UK economy," UK international trade secretary Elizabeth Truss said while announcing UK Global Tariff.

"Our new tariff is tailored to the needs of the UK economy. It will support the economy by making it easier and cheaper for businesses to import goods from overseas. It is a simpler, easier to use and lower tariff regime than the EU’s CET and will be in pounds (£), not euros. It will scrap red tape and other unnecessary barriers to trade, reduce cost pressures and increase choice for consumers and back UK industries to compete on the global stage," UK's department of international trade said in a statement.

"The Government is taking a common-sense approach to our 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%).

"We are also getting rid of the EU’s complex Meursing table, allowing us to scrap thousands of unnecessary tariff variations on products - including over 13,000 tariff variations on products like biscuits, waffles, pizzas, quiches, confectionery, and spreads," the official statement said.

The UKGT also expands tariff free trade by eliminating tariffs on a wide range of products. The UKGT ensures that 60 per cent of trade will come into the UK tariff free on WTO terms or through existing preferential access from January 2021, and successful FTA negotiations will increase this. In the process, costs for businesses will be lowered, ensuring they can compete on fair terms with the rest of the world, as well as keeping prices down and increasing choice for consumers.

The Government is maintaining tariffs on a number of products backing UK industries such as agriculture, automotive and fishing. This will help to support businesses in every region and nation of the UK to thrive. Some tariffs are also being maintained to support imports from the world’s poorest countries that benefit from preferential access to the UK market.

In the UKGT, almost all pharmaceuticals and most medical devices (including ventilators) are tariff free. However, some products used to fight COVID-19 maintain a tariff. To ensure those working on the frontline can access vital equipment easily, the UK has introduced a temporary zero tariff rate on these products. This relief waives the tariff and VAT for personal protective equipment (PPE), medical devices, disinfectant and medical supplies from non-EU countries. "The Government is committed to continuing to waive the tariffs on key COVID-19 items should this be necessary upon implementation of the UKGT in 2021," the statement said.

The UKGT was designed following widespread engagement with businesses across the UK.

Fibre2Fashion News Desk (RKS)