The UK has a free trade policy agenda, which means that free trade agreements have been established with a majority of our trading partners. But 0% tariff preference will not be automatically applied on import. In order to claim a reduction in tariffs, the terms set out in the relevant trade agreement must be adhered to.
It is important to remember that claiming 0% tariffs on the basis of a trade agreement is an application to utilise a tax waiver. It should be treated with appropriate formality, to avoid HMRC penalties for non-compliance. Alinea Customs provide expert guidance on indirect taxation, rules of origin and customs administration, to ensure that your supporting documents are accurate.
Claiming tariff prefereces will often involve the exporting company having to register for registered exporter (REX) status and providing a self-declaration or providing documentation such as a certificate of origin or a EUR1.
Understanding how to take advantage of these exemptions can help you save significantly on import costs. Here are five key recommendations to ensure that your business has access to maximise reducing customs duty while staying compliant with UK customs regulations.
1. Check Free Trade Agreements (FTAs)
The UK has trade agreements with numerous countries that allow for reduced or 0% import tariffs on eligible goods. Businesses should check if their imports qualify under agreements such as:
- UK-EU Trade and Cooperation Agreement
- UK-Australia Free Trade Agreement
- UK-Canada Trade Continuity Agreement
- UK-Turkey Trade Agreement
- UK-Japan Comprehensive Economic Partnership
To benefit from FTA tariff reductions, ensure that your goods meet the rules of origin requirements and that you have the necessary documentation. If any of the goods imported contain materials that are originating from a country other than the exporting country, it is possible that a supplier declaration may be required.
For in-depth guidance, read Alinea Customs guide to Rules of Origin and Free Trade Agreements or contact our customs team.
Watch Alinea’s YouTube video providing guidance on compliance with Rules of Origin and the EU-UK Trade and Cooperation Agreement:
2. Utilise the UK Global Tariff (UKGT) Schedule
The UK Global Tariff (UKGT) sets out the standard import duties for goods entering the UK. Some goods already benefit from 0% tariffs under the UKGT, so reviewing the schedule: here (enter the commodity code or product description for your goods and the country of origin) before importing can help you identify whether duty relief applies to your products.
Some people find the UK Global Tariff complex to navigate. To simplify the process, the UK government have a useful tool called: Check How to Import or Export your Goods – use this for understanding tariff rates and quotas, and also import and export documentation for controlled goods such as certain food products, and certain electronic equipment.
If you are a UK company exporting from the UK, you may also seek to use the: Check duties and customs procedures for exporting goods
The full list of countries supported is available: here
3. Apply for Duty Suspension or Relief Schemes
Several UK government schemes allow businesses to import goods at 0% duty under certain conditions:
- Inward Processing Relief (IPR): If you import goods for processing and re-export them outside the UK, you may be eligible for duty relief.
- Outward Processing Relief (OPR): This applies to UK goods temporarily exported for processing before re-importing with reduced or zero tariffs.
- End-Use Relief: Certain products, such as aircraft parts or medical equipment, may qualify for 0% tariffs if used for a specific purpose.
4. Check Tariff Quotas for Duty-Free Imports
The UK government offers tariff rate quotas (TRQs) for specific products, allowing businesses to import set quantities at reduced or zero tariffs. These quotas are typically allocated on a first-come, first-served basis – for steel and aluminium for example, or via licensing schemes which require the trader to make an application and meet certain criteria – particularly relevant for agricultural commodities exported from certain countries such as rice. Keeping track of quota availability and submitting applications early can help you secure lower duty rates.
5. Claim Reliefs for Developing Country Imports
Under the Developing Countries Trading Scheme (DCTS), businesses can import goods from eligible developing nations at 0% tariffs. This applies to products from countries benefiting from:
- Least Developed Country (LDC) tariff-free access
- Reduced tariffs for low and lower-middle-income countries
Review the UK government’s list of eligible countries and product classifications to determine if your imports qualify for tariff-free entry. To claim DCTS tariffs, a Form A must be completed, or the supplier should provide a supporting invoice declaration with a REX code. Read more: here.
Final Thoughts
Claiming 0% import tariffs in the UK requires careful planning, correct documentation, and awareness of available trade agreements and relief schemes. By following these five recommendations, businesses can optimise their import processes, reduce costs, and stay compliant with UK customs regulations.
Need expert assistance with UK customs procedures? Contact Alinea Customs for professional guidance on tariff exemptions and import duty reliefs.
