Important update for Transport and Logistics // Manufacturing Businesses
HMRC has taken further steps following recently announced measures that include Transitional Simplified Procedures, to introduce measures to assist businesses in the event of a no deal Brexit.
HMRC has today (as of 13th March 2019) published details of a temporary tariff regime ahead of the vote on a no deal. The temporary regime is intended to apply for 12 months and HMRC would closely monitor the effect of the tariffs on the economy.
What does the new scenario say?
In summary, UK businesses would not pay customs duties on many goods being imported to the UK should a no deal scenario occur. These measures would cover 87% of the UK’s total imports by value. The remaining 13% would still be subject to tariffs and this represents some foods, automotive, ceramics, fertilisers, fuel and goods from developing countries.
These proposed measures, whilst maintaining the Government’s priority is to secure a deal, demonstrate HMRC’s commitment to preparing for all possibilities and to ease the burden on UK businesses. Additionally, it has been confirmed that a temporary approach will be taken to avoid new checks and controls on goods at the Northern Ireland land border. These temporary import tariffs will therefore not apply to goods crossing from the Republic of Ireland into Northern Ireland.
Finally, these tariffs will apply equally to all trading partners, except those that the UK has a free trade agreement in place with, plus around 70 developing countries that will benefit from preferential access to the UK market.
We recommend that steps are now taken to address the above points. Should assistance or further information be required, please contact your Menzies advisor who can provide support.