At the Northamptonshire Chamber of Commerce we are dedicated to helping businesses make sense of Brexit. Below you will find some answers to commonly asked questions and the latest intelligence on Brexit developments on trade.
Will my business have to pay tariffs on imports from the EU?
As the UK is currently a member of the European Union, this means that UK businesses are able to import goods from EU member states without being subject to import duty.
If the UK Government reaches a Withdrawal Agreement with the European Union then the status quo is expected to continue until the end of the transition/implementation period on the 31st December 2020.
Once the UK leaves the EU, the level of import duty will depend upon the future trading relationship agreed between the UK Government and the EU which is still subject to negotiation.
The Political Deceleration released by the UK and EU in November 2018 sets out the frame work for the future relationship between the EU and the UK. It proposed zero tariffs, no fees, charges or quantitative restrictions across all goods sectors. However, this remains subject to negotiation.
In this scenario, from the 29th March 2019, the UK would revert to World Trade Organisation Rules (WTO) which means that UK businesses would have to apply the same customs procedures to imports from the EU, that are currently used when importing goods from countries with which the EU has no trade deals/preferential market access. This means that ‘Most Favoured Nation’ tariffs would apply to imports from the EU and an import declaration will be required for goods entering the UK from the EU.
From this point onwards, the UK Government would set the rate of customs duty required for goods imported from the EU. The Government has said that it will establish a UK Trade Tariff which will contain the import duty rates applicable to each good. This will replace the current EU Common Customs Tariff.
Click here for more information from the UK Government on trading with the EU if there is no Brexit Deal.