The UK government is developing a new Most Favoured Nation (MFN) tariff schedule intended to enter into force on 1 January 2021. The government has launched a four-week consultation on the UK Global Tariff policy, closing on 5 March 2020.
At the end of transition period, the UK will not be required to apply the EU's tariffs but will be free to employ a new UK Global Tariff schedule. The tariffs will apply to all goods imported into the UK unless they are covered by a preferential arrangement or a tariff suspension. In particular, this tariff will not apply to goods coming from countries that benefit under the Generalised Scheme of Preferences, or to goods originating from countries with which the UK has negotiated a trade agreement.
The consultation on the UK Global Tariff policy can be viewed and responded to here: www.gov.uk/government/consultations/the-uk-global-tariff
Within the consultation, the government is seeking views on:
- simplifying and tailoring the tariff to suit UK businesses and households, such as removing tariffs of less than 2.5% and rounding tariffs down to the nearest 2.5%, 5% or 10% band
- removing tariffs on key inputs to production which could reduce costs for UK manufacturers
- removing tariffs where the UK has zero or limited domestic production which could help lower prices for consumers
The consultation closes on Thursday 5 March 2020.
Note: The temporary tariff schedule developed in March 2019 is no longer relevant. It was intended for use if the UK left the EU without a deal.