The tariffs on tariff concessionary entries are not subject to the regular review procedures that apply to most imports. However, they have been subject to special rules that may have a significant impact on the tariff concessions offered to businesses and individual exporters. Tariff concession entries are those that enter the UK under the tariffs of other countries without the need for the consent of the United Kingdom authorities.
Customs clearance orders (TCO’s) item 50 in the Schedule to the Customs Act gives effect to the UK rules of duty on the importation of goods. If a tariff concession is available on a particular product then it is treated as if it were a duty-free import. This means that no duty or tax is charged and no Excise Duty is paid by the importer. Instead, the importer has to pay a separate charge for each imported product to claim the concession.
There are four main categories of tariff concessions which can be applied to tariff-free imports: Customs Duty, Value Added Tax, Import Charge and VAT. Most tariff concession orders contain additional duties and charges on imported products which are not included in the tariff list. Tariffs can be classified as general duty-free, duty-only or special duty-or duty. Tariff-free goods include agricultural products, fish and shellfish; processed and manufactured goods; alcoholic beverages; tobacco products; and electrical and electronic products.
Duty-free goods do not include foodstuffs, machinery and instruments, animals (except fish), and some agricultural produce, seeds and oils. Duty-free concessions can only be applied to specific classes of imports. Tariffs are set on each category in a manner to cover the importation of all items of importation into the United Kingdom and are determined by the type of goods in question.
Tariff concessions can be split into two groups, namely, duty-free. Also, there are tariff-dependent concessions, such as duty-free imports of services and other imports in addition to those with duty-free status. Tariffs and other charges can change from month to month, usually depending on seasonal changes in commodity prices and rates of exchange.
Tariff-free entry is another form of concession. Customs Clearance Order 10 allows the free entry of goods under tariff concession to the UK if there is no duty or VAT charged on the imported goods.
Duty-free goods include foodstuffs, livestock, manufactured goods and animal and fish products; some manufactured goods and petroleum products; and some agricultural produce. Duty-free imports are subject to an import charge, commonly known as duty and may be either general or specific duty-free.
Tariff-free imports are subject to a separate import charge and are either duty-free or duty-based. General duty-free imports include foodstuffs, manufactured goods and animal and fish products; some manufactured goods and petroleum products; and some agricultural produce. Duty-based imports are usually duty-based on specific goods but may be duty-free for certain categories of imports. Tariffs are set on each category in a manner to cover all goods in a given class and are determined by the type of goods in question.
Duty-free imports do not include alcohol, tobacco products, tobacco leaves and tobacco products; and electrical and electronic goods. Alcoholic drinks are subject to special tariffs; tobacco products may be duty-free for certain specific classes of imports, and electrical and electronic goods may be duty-free or duty-based. Tariffs and other charges may vary from month to month. and may change according to seasonal changes in commodity prices.
Duty-free concessions are available for a specific period, generally from six months to three years. Tariff-free imports must still pay the duty. for each imported item that remains subject to duty during the concession period, although it may be partially or wholly exempted from paying duty.
There are different types of concession periods. There are six months, three years, five year, ten year and twenty-year periods and the concession periods may be renewed without having to re-apply for them again.
Tariff-free entry can be extended, which extends the time allowed for a concession. These extensions can take longer to achieve. There are special provisions for trade with the European Economic Area and with third countries.