Brexit No Deal – WTO duty on EU machines/tooling?

[Adam HarrisParticipant @adamharris13683]

In a Brexit No Deal scenario, what would be the WTO duty on EU workshop machinery, new and used?

[Adam HarrisParticipant @adamharris13683]

[Gerard O’TooleParticipant @gerardotoole60348]

It seems to be 2.7% plus VAT

**LINK**

[Ketan SwaliParticipant @ketanswali79440]

Depending on how things develop with EU, current suggestions as per this link

Put in first four digits of the commodity code, e.g. 8458, and this will give you an idea of current 2.7% duty, future 2.0% duty (excluding signed agreements).

Note: Although above are good indications for the future, there may be additional duty for EU, depending on how much negotiators on each side work with each other or annoy each other, in which case, it could go up to between 6%~9%.

So, cost of goods + road/sea/air freight + duty + clearance costs = xx.xx + VAT

Although the taxes may be less of an issue, collection/admin/clearance.costs imposed by couriers may increase.

Please remember that this works both ways.

Ideally, free movement of goods would be great, but this will be part of the negotiations, which have yet to be finalised, regardless of whoever says whatever on either side. Pointless to consider at this point in time.

Distributors on all sides are doing a little bit of scare mongering.

Ketan at ARC.

[Former MemberParticipant @formermember32069]

[This posting has been removed]

[Brian GParticipant @briang]

Not that painful on new items if the vendor can sell VAT free for export (although we will also have to pay clearance fees), but could it mean that we will be charged VAT on used items from private sellers?

Brian G

[Ketan SwaliParticipant @ketanswali79440]

Posted by Brian G on 16/06/2020 12:05:23:

Not that painful on new items if the vendor can sell VAT free for export (although we will also have to pay clearance fees), but could it mean that we will be charged VAT on used items from private sellers?

Brian G

That will all come out in the wash. Pointless to worry about it from now.

Ketan at ARC.

[David Maynard 4Participant @davidmaynard4]

Ketan

I must say I find it fascinating that VAT should be charged on another tax……

cost of goods + road/sea/air freight + duty + clearance costs = xx.xx + VAT

David

[Former MemberParticipant @formermember32069]

[This posting has been removed]

[duncan webster 1Participant @duncanwebster1]

When I last imported something from the USA the duty was about £2 but the handling charge was £20. Needless to say I didn't pay it.

[SillyOldDufferModerator @sillyoldduffer]

Posted by Adam Harris on 16/06/2020 11:16:24:

In a Brexit No Deal scenario, what would be the WTO duty on EU workshop machinery, new and used?

No one knows beyond: 'If you are exporting a product to a country that the UK has no trade agreement with from 31 December 2020, the importer will pay the non-preferential tariff rate applied in that country to its imports.'

So the UK could choose to charge zero duty on machines imported from the EU (hurrah), while the EU elects to charge WTO duty on imports from the UK (weeping and wailing). However, as unbalanced duty is unfair to exporters it's economically vital for the UK to negotiate effectively.

Patchy progress so far with Trade Deals and the 1 January 2021 deadline is looming. As of today, 16th June, 20 Agreements with other Countries and Trading Blocs are expected to kick in next year. The big gap is the absence of agreements with the EU, USA, or China, and with many other significant players such as Canada, Brazil, Mexico or Australia etc. It could get rough. At present a high proportion of UK trade with the world is covered by EU Agreements and it's unclear what will happen to the overall cost of imports or exports when the UK leaves.

WTO rules are a welcome safety net but they're far from the whole story. Exporting under WTO terms puts the UK at an immediate 3% disadvantage, hopefully temporary. Unfortunately 'Border Formalities' will also be troublesome – additional checks and paperwork in both directions, total cost unknown.

Borders have two sides, and the other party may not be sympathetic! Even if they aren't bloody-minded, they the other side must negotiate to their best advantage. Much of the way ahead is outside UK control. London's writ doesn't extend to Brussels, Paris, Berlin, or Washington! So successful negotiations are vital. The government has to make good deals with the EU and our other major trading partners. Forget promises and spin, it's time for the politicians to deliver solid results. Let's hope they do!

Dave

[HollowpointParticipant @hollowpoint]

Lets hope we get good trade deals with the USA and Japan. There is plenty of top quality tooling available in the US I would like to get my hands on given half a chance!

[Former MemberParticipant @formermember32069]

[This posting has been removed]

[duncan webster 1Participant @duncanwebster1]

My package was delivered by the postie, obviously not used to dealing with such things, so I told him I wasn't paying, and he should send the goods back to sender as he as unable to deliver them and I'd ask for a refund. He just put it down and walked away muttering. You may or may not get away with this!

[not done it yetParticipant @notdoneityet]

Posted by David Maynard 4 on 16/06/2020 13:48:47:

Ketan

I must say I find it fascinating that VAT should be charged on another tax……

cost of goods + road/sea/air freight + duty + clearance costs = xx.xx + VAT

David

You don’t drive an ICE car? Most of the cost of fuel, before VAT, is likely tax.

You don’t drink alcohol? The ‘customer and exercise’ mob have their pick before VAT is added.

My, you have lived a sheltered life.🙂

[Ady1Participant @ady1]

Posted by duncan webster on 16/06/2020 14:08:00:

When I last imported something from the USA the duty was about £2 but the handling charge was £20. Needless to say I didn't pay it.

This is the elephant in the corner

If The Donald gets his way postal subsidies will cease and the cost of single items from china etc will rocket

So grab that gadget while you can, "you've never had it so good" could be about to disappear for postal charges

The end of July 2020 looks like when these changes are starting

**LINK**

"The agreement means the US and other high volume importers can set their own rates for delivering mail from abroad. "

= postage taxes

Edited By Ady1 on 16/06/2020 16:48:54

[speelwerkParticipant @speelwerk]

Posted by SillyOldDuffer on 16/06/2020 15:22:09:

Posted by Adam Harris on 16/06/2020 11:16:24:

So the UK could choose to charge zero duty on machines imported from the EU (hurrah)

If under WTO rules the UK charge zero duty on certain EU goods, then because of equality it also cannot charge duty on the same imports from other (non EU) countries. Niko.

Edited By speelwerk on 16/06/2020 17:00:10

[John HaineParticipant @johnhaine32865]

Posted by Barrie Lever on 16/06/2020 12:02:29:

So not really worth worrying about, that will get absorbed in post Covid business competitiveness.

I assume you are speaking in the ironic voice.

[Enough!Participant @enough]

Posted by David Maynard 4 on 16/06/2020 13:48:47:

I must say I find it fascinating that VAT should be charged on another tax……

Isn't that why the tern "Value Added" was invented in the first place?

[Neil WyattModerator @neilwyatt]

Posted by Bandersnatch on 16/06/2020 17:24:39:

Posted by David Maynard 4 on 16/06/2020 13:48:47:

I must say I find it fascinating that VAT should be charged on another tax……

Isn't that why the tern "Value Added" was invented in the first place?

I buy an object at X + VAT and sell it on at (X+Y) + VAT

The increase in price, Y, represents the value I've added. That's whether it's just making it easily available as a single unit instead of wholesale quantities or combining a whole load of individual elements into a new object.

The tax I pay the government is the difference between the input tax (i.e. on X) and the output tax (i.e. on X + Y), and is there for equal to the charge on Y, the value added, hence 'Value Added Tax'.

Neil

[Ex contributorParticipant @mgnbuk]

Forget promises and spin, it's time for the politicians to deliver solid results. Let's hope they do!

There is a first time for everything !

Nigel B.

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