Brexit tariffs trap

As part of the last-gasp EU-UK Trade and Co-operation Agreement published just a few days before the Brexit transition period ended on 31 December 2020 both sides agreed to a no-tariff deal on goods.

However this is to misname the breakthrough because more precisely it is a preferential tariff deal subject to complex rules of origin requirements. This means that many supply chains operating through the UK to the EU will fall foul of the tariff exemption and can expect uneconomical customs duties to be levied on their shipments. This comes despite a 12-month moratorium on the supporting paperwork. The sectors most at risk are possibly retail and ecommerce where many UK businesses rely on Chinese and other rest of the world (ROW) suppliers.

Tariff-free with strings

Preferential tariffs a common staple of free trade agreements mean most goods imported between EU and...