Many UK manufacturers are unaware that they could legitimately avoid customs duty costs on their imported materials. Where comparable materials are not produced in the UK, manufacturers can apply for a suspension of the customs duty on their imports.
Once in place, a tariff suspension applies to imports of specific materials which are then used in a UK manufacturing operation, and remains in place for at least two years until a review establishes that there is sufficient UK manufacture of comparable products. In this way, UK manufacturing remains competitive by reducing costs on raw materials or components not available from UK or Crown Dependency suppliers.
The opportunity to apply for a tariff suspension opens for around two months every year, and requires a UK applicant to demonstrate that they are unable to source their materials in sufficient quantities from manufacturers in the UK or its Crown Dependencies. Importantly, the applicant must also demonstrate the materials to be imported are then used in a manufacturing or processing activity in the UK, and that there will be a measurable duty saving of at least £10,000 per annum.
Identifying Tariff suspension opportunities
Typically, the biggest beneficiaries of tariff suspensions include:
- Automotive manufacturers and their suppliers
- Food and drink manufacturers
- Textile and garment manufacturers
- Chemicals and pharmaceutical
- Heavy industry using raw or semi-processed metals and plastics
The application process is complex and requires detailed commercial information. If your business currently incurs customs duty on imported materials, now is the time to consider whether you could benefit from a duty suspension.
Menzies’ customs specialists have helped businesses to make significant savings by using tariff suspensions, and would welcome the opportunity to discuss your eligibility – please contact Ian Worth at iworth@menzies.co.uk
Contact Our Experts
