HMRC Invites UK Importers To Propose New Items For Customs Duty Exemption

This week, HMRC has made an important announcement for businesses that import from overseas, creating opportunities for cost savings, competitive advantage and expanded market access. The announcement introduces a new, two-month window for duty suspension applications on new items, which will open in the coming weeks.

Duty Exemptions and Expanding Cost Savings

Any business importing raw items that are not available from UK originating sources, or not in sufficient quantities, can apply for those items to be exempt from duty. While the application can be a complex process, Barbourne Brook can submit an application on your behalf on a no-win, no-fee basis.

Customs duty suspensions, also known as tariff suspensions or tariff quotas, exempt certain goods from import duties or reduce the duty rates for a 2-year period. They are typically implemented to promote specific economic activities, foster trade, or address supply shortages.

In the past, there has been a threshold of £10,000 on duty savings, but HMRC has indicated that this will no longer apply – and duty savings will be considered on a case-by-case basis, meaning there is more scope for cost savings than in the past.

Adam Wood from Customs Duty Specialists Barbourne Brook gives the following advice for effectively taking advantage of these suspensions:

Review Imports: Undertake a review of your imports and establish if there are any goods for which duty is currently paid and where a tariff suspension would be beneficial.

Prepare applications: If any items are eligible, complete an application via the form on the HMRC website. If necessary, consider engaging with Barbourne Brook to support you with this process on a no-win, no-fee basis.

Stay Informed on new suspensions/exemptions from other applicants: Monitor official announcements from HMRC, trade organizations, and industry publications to stay updated on duty suspensions and other relevant changes in import regulations.

Adjust Import Strategies: If the duty suspensions apply to your goods, you should evaluate the potential impact on your import costs and pricing strategies. Consider the savings you can achieve and how this may affect your competitiveness in the market. It may be necessary to adjust your pricing, marketing, or supply chain strategies accordingly.

Compliance and Documentation: Importing goods under duty suspensions still requires compliance with customs regulations. Ensure that you meet all the necessary requirements, including proper documentation, declarations, and record-keeping, to benefit from the reduced or eliminated duties legitimately.

Strategic Partnerships: Explore opportunities to collaborate with suppliers or distributors in countries where the duty suspensions are applicable. By working together with partners who can take advantage of the reduced duties, you can optimise your supply chain and potentially achieve cost savings.