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Government launches new UK Global Tariff Regime

19-May-2020 10:40 AM | Anonymous

The government today announced the new UK Global Tariff regime that will be applied to products imported into the UK from 1st January 2021. The tariffs will apply to imports from countries where the UK does not have a trade deal.

For the fashion and textile sector there are almost 1,200 tariff lines. Under the new regime 67% of these will remain complete unchanged. Virtually every single fashion line will remain at 12% and the vast majority of yarns and fabrics will continue to attract an import duty of between 4 – 8%.

A further 15% of fashion and textile tariff lines have been simplified with, for instance, the import duty on silk ties falling from 6.3% to 6% and the rate on bras falling from 6.5% to 6%.

In total 203 tariff lines will drop to zero, in the vast majority of cases this is on products where the UK has little or no UK manufacturing e.g. the import duty on silk yarn will from 4% to 0% and that on terry towelling fabric will drop from 8% to 0%.

Adam Mansell, CEO of UKFT said: ‘’UKFT campaigned vigorously against the last proposed UK tariff regime as it failed to provide UK manufacturers with a level playing field and at the same time threatened to increase the amount of very cheap, disposable fashion imported from overseas.

“We welcome the new UK Global Tariff regime precisely as it addresses our two fundamental concerns. Our UK manufacturing base has received assurance that it can continue to trade on an equal footing and while consumers will still be able to benefit from the duty free arrangements with countries such as Bangladesh, there is not going to be a huge influx of super cheap fashion with all the environmental damage that could entail. However, we also urge the government to reach a positive conclusion to the negotiations with the EU – a market that accounts for 76% of our exports and 35% our imports.’’

A full list of the new UKGT for fashion and textiles can be viewed here.


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