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    Britain'S "Off Europe" Or Temporarily Abolition Of 87% Import Tariffs

    2019/3/26 15:44:00 5158

    BritainDeeuropeImportTariffInternational Observation

                                                                         

         

    The British government announced in March 13th that according to its interim plan for the no agreement to remove Europe, the United Kingdom would be exempt from tariffs on 87% of the total imports if there was no agreement to remove Europe.

    At present, 80% of British products are tax-free.

    The UK provisional tariff will take effect at 11 pm on March 29th.

    Interim plan without agreement

    The British government announced on the 13 th that if the United Kingdom could not break away from the EU without reaching an agreement with the European Union, it would temporarily cancel the import tariff of 87% and would not immediately resume the "hard boundary".

    "Hard boundary" means the re establishment of substantive customs and border inspection facilities between the Northern Ireland region of Ireland and the Irish countries of the European Union.

    Britain was originally scheduled for 29 this month officially "off Europe", the lower house of Parliament is scheduled to vote later on the 13 th whether to agree "no agreement to Europe."

    According to the above provisional plan, the UK will still impose tariffs on the remaining 13% of its imports, including tariffs and quotas for beef, mutton, pork, poultry and some dairy products to support farmers and producers who have traditionally been protected by the EU's high tariffs.

    British trade policy minister George Hollingbery said in a statement: "if there is no agreement to depart from Europe, we will set most of the import tariffs to zero, while maintaining the same tariff for the most sensitive industries.

    Such a balanced approach will help to support employment in the UK and avoid potential price spiking that will cause serious impact on poor families.

    Reuters reports that about 82% of EU products will be exempt from import duties, and now the UK is exempt from tariffs on EU products.

    92% products imported from other parts of the world will be exempt from customs duties, substantially higher than the current 56% tax exemption level.

    The new tariff scheme does not apply to countries and regions that have signed free trade agreements with the United Kingdom, and about 70 developing countries with preferential access to the UK market.

    The new tariff scheme also does not apply to imported products across the Anglo American border.

    Several families are unhappy.

    Reuters analyses that cutting import tariffs is expected to ease the impact of sudden price rises on British consumers, but may allow British manufacturers to compete with cheaper imports.

    Low tariffs and even zero tariffs may also lead to a narrowing of the asking price for future trade agreements in the UK.

    Britain's tariff cuts on most other commodities may make it difficult for British industry to survive overseas competition, especially in Northern Ireland.

    Stephen Pison Stephen Phipson, the chief executive of Make UK, said in an interview with the financial times that at present some industries in the UK are protected by the government. This is gratifying, but the trade plan will devastate the entire manufacturing sector in the UK. Meanwhile, the import tariffs and inspections on the Northern Ireland border will lead to the influx of inferior commodities into the British market.

    The British government also acknowledges that the absence of a "hard boundary" may lead to the unregulated flow of some products into the UK, which has become a means for some people to make improper profits.

    The British government said it would negotiate with the European Commission and the Irish government as soon as possible to avoid long-term measures of "hard borders".

    In addition, according to the WTO regulation, the United Kingdom has no agreement to adjust the import tariff policy of EU and other countries in the world. However, other countries have no obligation to reduce their import tariffs on British goods to respond to the adjustment of the British tariff policy.

    Therefore, the trade plan in Britain may have a certain impact on the domestic manufacturing and commodity problems in a short time.

    The European Commission said that the difference in trade treatment between Ireland and other EU countries is indeed worrying.

    But the EU will not abolish most tariffs, like Britain, but will levy taxes on British imports according to WTO standards.

    Special reminder

    After withdrawing from the EU, the British trade tariff instrument, which is responsible for checking the commodity code, tariff and VAT tax rate, will update the provisional tariff rate of imported goods.

    The UK provisional tariff will take effect at 11 pm on March 29, 2019, and the interim tariff plan will last 12 months if there is no agreement.

    Before the renewal of the trade tariff tools in the UK, enterprises can understand the relevant rates through three ways: using the British trade tariff tool to find the code of goods, observing the provisional tariff rate of imported goods after the European Union, using commodity code to search for commodities, and finding out whether the preferential tariff rate, MFN tariff rate or tariff quota rate apply to your products.

         

         

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