Deadline For HMRC Duty Suspension Application

Next Wednesday (11:59pm, 3 July 2024) is the final deadline for applications for new tariff suspensions and for providing your views on the extension of current suspensions that are due to expire at the end of the year.  For businesses involved in shipping these items, the potential changes to tariff suspensions could have significant consequences on the running costs of the business and the financial viability, or otherwise, of current operations.

Duty suspensions, or tariff suspensions, are complete or partial reductions in the UK Global Tariff (UKGT) rate for specified products. They aim to help domestic manufacturing companies be more competitive by lowering the cost of importing the raw materials that they need, but are unavailable for purchase in the UK. Industries, including agriculture, micro-electrics and chemicals, are particularly affected by this scenario and are likely to benefit from the scheme.

The pending deadline gives businesses the chance to provide your views on the proposed extension of existing suspensions which are due to expire on 31 December 2024 and apply for new items to be added. Both can be done via HMRC website, but there is a different application for each.

uk shipping dock with imported goods waiting to go through customs declarations

Adam Wood, Head of Commercial at Barbourne Brook, commented:

“If a business currently uses a tariff suspension scheme and does not take action ahead of this deadline, they may lose out on that suspension or reduction at the end of the year. This could have a significant impact on predicted profit margins.

“Similarly, a business importing goods which are not easily available in the UK, may be able to cut import costs significantly by submitting an application before 11.59pm on 3 July. This could potentially increase profitability and/or competitiveness in the market.”

Adam Wood the Head of Commercial at Barbourne Brook

Barbourne Brook Is Here To Help

If you have any questions or would like advice on whether this deadline might have relevance for your organisation,
call Adam Wood for a no obligation conversation on 01905 914031 or you can email Adam at adam@barbournebrook.co.uk.