UK Tariff Changes announced from 1st January 2021

The UK Global Tariff will apply to goods imported into the UK from 1 January 2021, at the end of the transition period, unless an exception such as a preferential arrangement or tariff suspension applies. For example, it will not apply to goods coming from developing countries that benefit under the Generalised Scheme of Preferences (GSP), or to goods originating from countries with which the UK has negotiated a Free Trade Agreement (FTA). The Northern Ireland / Ireland Protocol in the Withdrawal Agreement provides for certain specific arrangements as regards Northern Ireland.

The UKGT was designed following engagement with businesses and individuals across the UK. This included over 1,300 responses to a public consultation that are summarised here. The public consultation demonstrated the UK’s intention to simplify and tailor our tariff regime. It offered respondents the opportunity to provide views on how we create a tariff schedule that reflects the needs of UK business.

I. Removing tariffs on goods with particularly low tariffs currently (less than 2.5%)

III. Taking steps towards agricultural tariffs that are applied as single percentages

B. Removing tariffs on key inputs used in the production of other goods;

C. Removing tariffs where the UK has limited or zero domestic production.

UK consumers will also benefit from more choice and lower costs on numerous goods thanks to zero tariffs. These include, for example:

Dishwashers (down from 2.7%).

Freezers (down from 2.5%).

Sanitary products and tampons (down from 6.3%).

Paints (down from 6.5%) and screwdrivers (down from 2.7%).

Mirrors (down from 4%).

Scissors and garden shears (down from 4.7%).

Padlocks (down from 2.7%).

Cooking products such as baking powder (down from 6.1%), yeast (down from 12%), bay leaves (down from 7%), ground thyme (down from 8.5%) and cocoa powder (down from 8%).

Christmas trees (down from 2.5%).

COVID-19 maintain a tariff. To ensure those working on the front line 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. This will be reviewed throughout 2020 and will continue to apply in 2021 if necessary. Pay no import duty and VAT on medical supplies, equipment and protective garments (COVID-19) click here to find out more.

1. least developed countries framework (LDCF)
2. general framework
3. enhanced framework

These frameworks will replicate the same market access as the EU’s GSP.

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