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UK: 2023 Duty Suspension Outcomes for 2024 have come into force

Navigating Duty Suspensions: A Guide for Customs Professionals: Can you benefit?


As a custom professional, are you looking to save on customs duties for your specific products? Dive into this insightful blog entry where we unravel the intricacies of duty suspensions in 2023 and how your business can benefit from them. Learn about the sectors that stand to gain, the application process, and how expert assistance can streamline your efforts.


Executive Summary

In 2023, duty suspensions offer a lucrative opportunity for businesses to save on customs duties. This blog entry provides a comprehensive guide for customs professionals, outlining the products eligible for duty suspensions, the sectors poised to benefit, and the application process. With expert assistance, businesses can navigate this landscape effectively, maximizing savings and optimizing operations.


Table of Content

1. Executive Summary

2. Introduction

3. Background

4. What Products Benefit from 2023 Duty Suspensions?

5. When Do These Come Into Force?

6. Which Business Sectors Benefit?

7. How Can My Business Apply for Duty Suspension in the Future?

8. What Is the Process of Duty Suspensions?

9. Who Can Help Me Submit a Successful Duty Suspension Application to the Government?

10. Conclusions

11. Recommendations


Introduction

Customs duties represent a significant cost for businesses engaged in international trade. However, duty suspensions present a promising avenue for savings. In this blog entry, we delve into the intricacies of duty suspensions in 2023, offering actionable insights for customs professionals seeking to capitalize on this opportunity.


Background

Duty suspensions are temporary exemptions from customs duties, often granted to stimulate economic activity or support specific industries. These exemptions can significantly reduce the financial burden on businesses, leading to increased competitiveness and profitability.



What Products Benefit from 2023 Duty Suspensions?

Duty suspensions in 2023 cover a diverse array of products, ranging from agricultural goods to industrial materials. Here are some examples of group of products and some examples:


Chemical Compounds

- Terephthalic acid and its salts.

- Tetrachloroethylene (perchloroethylene).

- Melamine.

- Dichloromethane (methylene chloride).

- Phthalic anhydride.

- Tetrahydrofuran.

- Pyridine.


Food Products

- Pineapple juice.

- Tomato paste.

- Mango puree.

- Garlic, onions, and related vegetables.

- Red currants, blackcurrants, blueberries, cranberry slices, and vegetable oil.

- Strawberries.

- Food preparations in powder form.

- Hydrolysed Vegetable Protein.

- Autolysed or inactive yeast extract.


Industrial Materials

- Precious metal catalyst coated membrane.

- Multilayer film.

- Laminate film.

- Multilayer electrolyte membrane.

- Synthetic poly-alpha-olefin.

- Weft-inserted warp-knitted synthetic polyester yarn.

- Magnesium alloy frame and fork.

- Allylpalladium (II) chloride dimer.


Textile and Leather Products

- Gloves, mittens, or mitts.

- Pig grain nappa leather.

- Cow and goat hair on hides.

- Sheepskins.


Automotive Components

- Automatic transmissions.

- Suspension and engine mounting assemblies.


Plastic and Polymer Products

- Film of expanded polytetrafluoroethylene.

- Multilayer film of poly(ethylene terephthalate) and polyethylene naphthalate.

- Laminate film of ethylene tetrafluoroethylene / poly(ethylene terephthalate).

- Film of poly(ethylene terephthalate).

- Bags made of polypropylene with polyethylene line.


Chemical Additives

- Preparation containing astaxanthin.

- Feed additive containing l-lysine sulphate.

Metals and Alloys

- Magnesium alloy frame and fork.


Miscellaneous Products

- Cut flowers and flower buds.

- Anhydrous Citric Acid.

- Trisodium citrate dihydrate.

- Tin bis-(2-ethylhexanoate).

- Salicylonitrile.

- (3H)-Benzofuran-2-one.


This categorization helps to organize the products based on their nature and intended use.

These are just a few examples, but the list includes a wide range of products used in various industries, from chemicals and plastics to food and beverages.


Download the full list of 2023 Duty Suspensions for Great Britain

What HS Chapters can benefit from these suspensions?


Based on Harmonized System (HS) 2022:

- 11: Products of the milling industry; malt; starches; inulin; wheat gluten.

- 12: Oil seeds and oleaginous fruits; miscellaneous grains, seeds, and fruit; industrial or medicinal plants; straw and fodder.

- 19: Preparations of cereals, flour, starch, or milk; pastrycooks' products.

- 20: Preparations of vegetables, fruit, nuts, or other parts of plants.

- 21: Miscellaneous edible preparations.

- 23: Residues and waste from the food industries; prepared animal fodder.

- 27: Mineral fuels, mineral oils, and products of their distillation; bituminous substances; mineral waxes.

- 28: Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes.

- 29: Organic chemicals.

- 32: Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments, and other colorants; paints and varnishes; putty and other mastics; inks.

- 34: Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles, and similar articles, modeling pastes, "dental waxes" and dental preparations with a basis of plaster.

- 38: Miscellaneous chemical products.

- 39: Plastics and articles thereof.

- 40: Rubber and articles thereof.

- 41: Raw hides and skins (other than furskins) and leather.

- 43: Furskins and artificial fur; manufactures thereof.

- 56: Wadding, felt, and nonwovens; special yarns; twine, cordage, ropes, and cables and articles thereof.

- 60: Knitted or crocheted fabrics.

- 63: Textiles, made up articles; sets; worn clothing and worn textile articles; rags.

- 69: Ceramic products.

- 71: Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewelry; coin.

- 73: Articles of iron or steel.

- 76: Aluminum and articles thereof.

- 80: Tin and articles thereof.

- 81: Other base metals; cermets; articles thereof.

- 87: Vehicles, other than railway or tramway rolling stock, and parts and accessories thereof.

- 94: Furniture; bedding, mattresses, mattress supports, cushions, and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated nameplates, and the like; prefabricated buildings.


Download the full list of 2023 Duty Suspensions for Great Britain

When Do These Come Into Force?

The suspensions were expectedly put into effect on April 11, 2024. They will remain in place until June 30, 2026, with a review for possible extension before this date.


Which Business Sectors Benefit?

Here's is how these business sector can benefit from the 2023 suspensions:


1. Chemical Industry:

- Businesses importing chemicals like Melamine, Phthalic anhydride, Tetrahydrofuran, and Pyridine can benefit. For example, if a company imports Tetrahydrofuran into the UK, they can enjoy duty-free imports as long as they meet the specific description outlined in the tariff suspension agreement.


2. Food and Beverage Industry:

- Companies dealing with food products such as tomato paste, mango puree, and garlic can benefit. For instance, if a food processing company imports mango puree meeting the specified criteria, they can save on import duties, reducing production costs.


3. Manufacturing and Industrial Materials:

- Manufacturers importing materials like precious metal catalyst coated membrane, synthetic poly-alpha-olefin, and magnesium alloy frames can benefit. For example, if a bicycle manufacturing company imports magnesium alloy frames for electric bikes meeting the suspension criteria, they can save on import tariffs, making their products more competitive in the market.


4. Textile and Leather Industry:

- Businesses importing textile products like gloves, leather hides, and yarn can benefit. If a company imports pig grain nappa leather for shoe production as specified in the suspension agreement, they can avoid paying import duties, reducing their manufacturing costs.


5. Automotive Sector:

- Automotive companies importing components such as automatic transmissions and suspension assemblies can benefit. For instance, if an automobile manufacturer imports automatic transmissions equipped with a double clutch system meeting the suspension criteria, they can save on import duties, making their vehicles more cost-effective for consumers.


6. Plastics and Polymers Industry:

- Companies importing plastic and polymer products like multilayer films and laminate films can benefit. If a packaging company imports multilayer film of polyethylene terephthalate and polyethylene naphthalate according to the suspension agreement, they can avoid import duties, reducing packaging costs for their products.


7. Chemical Additives and Feed Industry:

- Businesses importing chemical additives and feed additives can benefit. For example, if a company imports a feed additive containing l-lysine sulphate meeting the suspension criteria, they can save on import tariffs, making their animal feed products more affordable for farmers.


8. Miscellaneous Products:

Businesses importing miscellaneous products like cut flowers, citric acid, and tin bis-(2-ethylhexanoate) can benefit. For instance, if a flower shop imports cut flowers as specified in the suspension agreement, they can avoid paying import duties, reducing the cost of their floral arrangements for customers.



But my product is no on the list, how can my business apply for Duty Suspension in the future?

Businesses can apply for duty suspensions through the UK Department of Business and International Trade.


This involves, usually:

  • Demonstrating the economic or industrial significance of the product, such as its role in manufacturing, job creation, or contribution to the economy.

  • Articulating how the duty suspension would benefit not only the applying business but also the broader industry or economy.

  • Ensuring compliance with all relevant regulations and standards, including those related to product safety, environmental impact, and labor practices.

  • Engaging with stakeholders, such as industry associations, trade groups, and government agencies, to garner support and advocate for the duty suspension.

  • Monitoring the application progress and promptly addressing any queries or concerns raised by the authorities during the review process.

Timely and accurate submission of applications is essential for success in the duty suspension process. The experts at Customs Manager Ltd can facilitate this process by ensuring that all required documentation is prepared and submitted correctly.


By following these steps and ensuring compliance with regulatory requirements, businesses can increase their chances of securing duty suspensions for their products.


What Is the Process of Duty Suspensions?

The process of duty suspensions involves thorough evaluation by government agencies to assess the economic impact and eligibility of the products in question. Key steps in the process include:


1. Initial Application: Businesses submit applications for duty suspensions, providing detailed information about the products, their intended use, and the rationale for seeking a suspension.


2. Evaluation: Government agencies review the applications, considering factors such as the potential economic benefits, industry competitiveness, and alignment with trade policies.


3. Decision: Based on the evaluation, authorities decide whether to grant duty suspensions for the requested products. Approved suspensions are typically communicated to stakeholders through official channels.


Who Can Help Me Submit a Successful Duty Suspension Application to the Government?

Expert assistance from Customs Manager Ltd can streamline the application process, ensuring compliance with regulations and maximizing the chances of approval.


Customs professionals with experience in duty suspensions can provide valuable insights and guidance throughout the application process, including:


  • Determining the eligibility of products for duty suspensions based on tariff classifications and trade regulations.

  • Preparing comprehensive application packages, including product descriptions, supporting documents, and justification for seeking duty suspensions.

  • Navigating any complexities or challenges that may arise during the evaluation process, such as requests for additional information or clarification from authorities.


By leveraging the expertise of customs professionals, businesses can enhance their chances of submitting successful duty suspension applications and realizing significant cost savings on customs duties.


Conclusion

In conclusion, duty suspensions in 2023 offer a valuable opportunity for businesses to reduce customs duties and enhance competitiveness in the global market. By understanding the products eligible for duty suspensions, the application process, and the role of expert assistance, customs professionals can effectively navigate this landscape and maximize savings for their businesses. With strategic planning and proactive engagement, businesses can leverage duty suspensions to optimize their customs duty obligations and drive growth in their respective industries.


Recommendations

We recommend that businesses proactively assess their import activities and identify opportunities to leverage duty suspensions for cost savings. By staying informed about upcoming duty suspensions and seeking expert assistance when needed, businesses can streamline the application process and increase their chances of securing duty suspensions for their products. For personalized guidance and support in navigating duty suspensions, we encourage businesses to contact us. With our expertise and experience, we have helped numerous businesses successfully obtain duty suspensions and unlock significant savings on customs duties. Don't miss out on this opportunity to optimize your import operations and enhance your competitive advantage in the global marketplace.


From a compliance and cost-saving perspective, Customs Manager Ltd offers unparalleled expertise in duty suspensions. To explore personalized recommendations and strategic insights, schedule a free expert call on www.customsmanager.org. Enhance your skills with our specialized training programs at www.customsmanager.org/events. Stay updated with essential updates curated by customs experts by subscribing to our newsletter at www.customsmanager.info. For inquiries, contact Arne Mielken at +447914650183 or info@customsmanager.org.


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