Post-Brexit trading: Anti-dumping & upfront VAT?

The Taxation (Cross Border Trade) Bill - or 'Customs Bill' - will receive its second reading the House of Commons this week, detailing trading post-Brexit.

Unions and business bodies have called for amendments to bring in strong anti-dumping legislation, giving power to the new Trade Remedies Authority.

The GMB Union was among those calling for the measures, warning that the UK risks being flooded with cheap steel, ceramics and other products post-Brexit. Up until now, the European Commission has been responsible for defending UK manufactured goods against unfair imports.

Jude Brimble, GMB National Secretary for Manufacturing, said: "Get this wrong and the UK market could be flooded with cheap steel, ceramics and other products – putting thousands of jobs at risk.

“GMB demands the Government puts UK manufacturing jobs and industry first and insists on strong anti-dumping legislation to give the new Trade Remedies Authority the clout it needs to protect our markets and high quality manufacturing jobs."

VAT upfront on goods from the EU?

Reports emerged over the weekend (6 Jan) that UK firms will be forced to pay upfront VAT on goods imported from the EU, post-Brexit (via The Guardian).

Currently, UK companies can bring machine parts or goods ready for sale VAT-free from the EU, with VAT added to the product when sold. The charge is registered and claimed later (more details here).

In addition, the British Retail Consortium has warned of the risks of not adopting EU global trade deals for third countries. As a member of the EU, the UK benefits from zero or low rate tariffs on various imports from trade deals that the EU has negotiated with third countries, including certain products from Turkey and Iceland, for example.

The UK is tabled to leave the EU on 30 March 2019.