UK Releases Details for New MFN Tariff Regime
The U.K.’s Department for International Trade released its Most Favored Nation tariff regime, which will replace the European Union’s Common External Tariff after the Brexit transition period ends, the U.K. said May 19. The regime, the U.K. Global Tariff (UKGT), will be “simpler” and “easier” to use than the EU’s system, the U.K. said, adding that it will “scrap red tape and other unnecessary barriers to trade.” The UKGT will simplify nearly 6,000 tariff lines and eliminate “thousands of unnecessary tariff variations on products” by abandoning the EU’s “complex” Meursing table, the U.K. said. Other changes include “scrapping unnecessary tariff variations, rounding tariffs down to standardised percentages, and getting rid of all ‘nuisance tariffs’ (those below 2%).”
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The UKGT will ensure that 60% of imports will enter the U.K. tariff-free, but will also maintain tariffs on a range of agriculture, automotive and fishing goods, the DIT said. The U.K. will maintain a 10% tariff on cars, keep the “vast majority” of tariffs on ceramic imports and maintain tariffs on lamb, beef and poultry. The U.K. said it will likely continue to eliminate tariffs on medical goods if the COVID-19 pandemic persists past the transition period.
In a separate notice, the U.K. released the public responses it received from its consultation period for the UKGT. The DIT said it received about 1,400 comments, according to a May 19 notice, and aims to use the comments to “create a tariff schedule that reflects the needs of UK business,” Trade Secretary Elizabeth Truss said in a statement.