Latest information from the FTA gives clarification from HM Revenue and Customs (HMRC) about the tariffs applicable for new trucks originating from the EU, along with the point at which these tariffs would apply.
“In the event of no deal, the UK government would set temporary tariff rates which would apply from 23:00 on Exit Day and be in place for up to 12 months from Exit Day.
The tariff would apply to all UK imports from countries the UK does not have trading arrangements in place with, (including the 28 EU member states in the event of a no deal).
However, if the movement of goods from the EU to the UK starts before 23:00 on the day of exit then existing rules from the EU will apply even if the goods arrive after that time or date.
The relevant legislation is set out in SI1248/2018 (The Customs (Import Duty) (EU Exit) Regs 2018). Chapter 7 of Part 15, Section 158 deals with Union goods beginning their movement to the UK before exit day. As set out in S158(2), if the goods commence their movement to the UK before exit day they will continue to be treated as falling under UCC rules (i.e., not treated as rest of world goods).
Commencement of movement is broadly defined as when the goods are collected or despatched.”
The FTA recommends that operator members who are negotiating a vehicle acquisition in Q3 2019 – for delivery after 31 October this year – either direct or through a leasing company, ensure they know which party will be liable for any import duties should they be applied.
Information kindly provided by the FTA: