In response to the announcement on temporary arrangements for tariffs and quotas in the event of a no deal Brexit scenario, Jo Bello, Global Indirect Tax Leader at PwC said:
“Today’s tariffs and quota announcement will come as a welcome improvement for many businesses across the UK. However, the picture is mixed.
“For 12 months after a no deal, tariffs will apply to some but not all goods. Duties will be paid on beef, lamb, poultry, bananas, cars, most clothing for imports from all countries, not just those from the EU. This has potential to have an effect on the competitive landscape of the UK market, and make imports cheaper from the rest of the world, across multiple industries. Without further arrangements agreed with the EU, tariffs will apply to UK exports, as they do today for non EU goods being delivered to the EU.
“Similarly post Brexit border controls will only be required for the movement of certain goods from the Republic of Ireland to Northern Ireland, and no tariffs will apply. Whilst the risk of smuggling has been identified and will need regular monitoring, this approach should enable the movement of people and goods to the UK to continue with ‘business as usual.’
“Businesses should revisit their no deal scenario plans, and continue to monitor further developments. They may find that plans can be adjusted, for instance those made for alternative supply given the changes in tariff related costs.”
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