Future Relationship Between the UK and the EU

Part of Domestic Gas and Electricity (Tariff Cap) Bill – in the House of Commons at 4:16 pm on 18th July 2018.

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Photo of Dominic Raab Dominic Raab The Secretary of State for Exiting the European Union 4:16 pm, 18th July 2018

My hon. Friend mentions the earlier approach. Under the earlier proposals for a new customs partnership, businesses would only receive tariff rebates after tracking goods through the entire supply chain to the point of final consumption in the UK. In contrast, the FCA—I hope this addresses his point—will be an upfront system. That means that most businesses, the overwhelming majority, would pay the right tariff to begin with. Other businesses could claim a tariff repayment as soon as possible in the supply chain. We will agree with the EU the circumstances in which repayments can be granted. As the White Paper makes clear, we will negotiate a reciprocal tariff revenue formula, taking into account goods destined for the UK entering via the EU and goods destined for the EU entering via the UK.