UK Trade with EU

Treasury written question – answered on 5th September 2018.

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Photo of Jo Platt Jo Platt Shadow Minister (Cabinet Office)

To ask the Chancellor of the Exchequer, pursuant to the Answer of 23 July 2018 to Question 165182, by what means HMRC plans to distinguish between a good settled in its final destination in the UK and a good destined to travel on to the EU.

Photo of Mel Stride Mel Stride Financial Secretary to the Treasury and Paymaster General

Under the Facilitated Customs Arrangement, the UK will apply the EU’s tariffs and trade policy for goods intended for the EU; while applying its own tariffs and trade policy for goods intended for the UK.

Where a good reaches the UK border, and the destination can be robustly demonstrated by a trusted trader, it will pay the UK tariff if it is destined for the UK and the EU tariff if it is destined for the EU. This is most likely to be relevant to finished goods, and we will seek to maximise the number of trusted traders who can pay the correct tariff at the border.

Where the destination of the good cannot be demonstrated at the point of import, the higher of the UK or EU tariff will be due. Where the good’s destination is later identified to be the lower tariff jurisdiction, it will be eligible for a repayment from the UK equal to the difference between the two tariffs. This is most likely to be relevant to intermediate goods.

The FCA, including how goods destined for the UK and the EU will be distinguished, will be designed to make it as simple as possible for businesses to engage with. The final details will be subject to negotiations with the EU.

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