Changes to the UK Duty Suspension Regime 

The UK has announced its duty tariff suspension regime which will replace the equivalent EU regime. Duty Suspensions are designed to help UK business to remain competitive on the global stage and work by suspending import duty on specific goods.

Duty Suspension is more commonly used for raw materials and components, not for finished goods. If granted, Duty Suspensions can be used by any UK business and are usually granted for 5 years.

Effectively, this allows businesses the opportunity to significantly reduce their cost of sales on major lines of import. This is most obviously beneficial to the manufacturing industry with a considerable number granted within the electronics, metal and chemical sectors.

There is a short window of opportunity for businesses to apply for a Duty Suspension (1st June 2021-31st July 2021) meaning firms need to act swiftly to benefit

This is a particularly complex area as any applications to HMRC must fit strict criteria and be backed by a strong commercial case.  Barbourne Brook have significant experience in presenting successful applications for Duty Suspension on behalf of our clients. Our fees for this service are contingent, meaning we only get paid if successful.

Applications should meet all of the following criteria:

  • applicants should submit a completed form by 11.55 pm on 31 July 2021;
  • applicants are based in the UK or Crown Dependencies;
  • UK and Crown Dependency businesses would have saved at least £10,000 in duties if the suspension had been in force in 2020 – you can provide 2019 data if your business has been impacted by COVID-19;
  • the request is not for a product that is traded between related parties, in circumstances which would mean other UK businesses cannot benefit from a suspension;
  • the product or substitutable products are not produced in the UK or Crown Dependencies, only produced in limited quantities, or production is temporarily insufficient;
  • the product will be used in a production process or there is a specific temporary need for the product.
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