The Government announced on 19 May the UK’s new MFN tariff regime, the UK Global Tariff (UKGT). This will replace the EU’s Common External Tariff on 1 January 2021 at the end of the Transition Period.
The new tariff is tailored to the needs of the UK economy supporting the economy by making it easier and cheaper for businesses to import goods from overseas. It is a simpler, easier to use and lower tariff regime than the EU’s Common External Tariff (EU CET) and will be in pounds (£), not euros. It will scrap red tape and other unnecessary barriers to trade, reduce cost pressures and increase choice for consumers and back UK industries to compete on the global stage.
The Government is streamlining and simplifying nearly 6,000 tariff lines, and lowering costs for businesses by reducing administrative burdens. It is also getting rid of the EU’s complex Meursing table, allowing the UK to scrap thousands of unnecessary tariff variations on products – including over 13,000 tariff variations on products like biscuits, waffles, pizzas, quiches, confectionery, and spreads. The UKGT also expands tariff free trade by eliminating tariffs on a wide range of products.
The Government is maintaining tariffs on a number of products backing UK industries such as agriculture, automotive and fishing. This will help to support businesses in every region and nation of the UK to thrive.
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