Motor Vehicles: Manufacturing Industries

Department for International Trade written question – answered on 17th October 2019.

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Photo of Jack Dromey Jack Dromey Shadow Minister (Work and Pensions) (Pensions)

To ask the Secretary of State for International Trade, what assessment the Government has made of the effect of the UK’s temporary tariff schedule on (a) duties levied on automotive components and (b) levels of competition in the automotive sector.

Photo of Conor Burns Conor Burns The Minister of State, Department for International Trade

If the UK leaves the EU without a deal, the Government will introduce the Temporary Tariff Regime (TTR) for imports into the UK that are not subject to alternative trade arrangements, applying for up to 12 months. The Government has published a Tax Information and Impact Note on the TTR, which is standard practice to support tax policy decisions.

Under the TTR, tariffs would be retained on a number of finished vehicles in order to support the automotive sector in light of broader challenging market conditions. Car makers relying on EU supply chains would not however face additional tariffs on car parts imported from the EU to prevent disruption to supply chains. Preserving access to good value intermediate goods will support the competitiveness of the UK’s own exports. The Government believes British business is in a strong position to compete in the global market once we have left the EU, selling British-made goods such as our high-quality British cars into markets across the world.

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