In a recent development surrounding the ever-changing news about the Brexit decision, the UK government announced a possible game-changer in a potential no deal scenario. On Wednesday, March 13, the UK government shared the news that if a no deal Brexit occurs without a transition plan, there is a possibility of a temporary tariff suspension.
The UK’s temporary tariff regime for no deal is designed to minimize costs to business and consumers while protecting vulnerable industries.
As such, British businesses would NOT pay customs duties on the majority of goods when importing to the UK if a no deal Brexit occurs. The regime would be temporary, whereby the UK government would closely monitor the effects of such on the UK’s economy. It would be applicable for up to 12 months while a full consultation and review on a more permanent approach to tariffs are explored.
The UK government would set temporary rates which would:
Under the temporary tariff lift, 87% of total imports to the UK by value would be eligible for tariff-free access and applies to goods from the rest of the world, not just the EU.
Tariffs would still apply to 13% of goods imported into the UK. This includes:
Stay tuned throughout the next several weeks as we all learn more about the changes that will come surrounding Brexit. There are instances where change is good; in this case, we need to wait and see the type of change and the amount of change that awaits us before we can decide. As we have said previously on this topic, “only tomorrow knows.”