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Brexit Potential Change in Import Duties | AJF

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BREXIT

Brexit Potential Change in Import Duties

Originally the UK government intended to reduce the majority of customs duties to zero.  However the UK government is now consulting on replacing the current import tariffs with 4 bands to cover the majority of goods.  The consultation will run from the 5th March 2020 and the government is wanting to hear from all business importing goods into the UK on how they feel the new tariff system should be implemented. Overall the UK government wishes to simplify the current complex tariff which it still shares with the EU until 31st December 2020.

The new import duties are expected to be consolidated around four bands.

  • 0% for items with duty rates previously below 2.5%
  • 2.5% for items with duty rates previously below 5%
  • 5% for items with duty rates previously below 10%
  • 10% for items with duty rates previously above 10%

As with the previous plan, certain products would be exempt and have their own custom import duty system. Currently there is no list available of what these products will be.

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