Small Businesses: Imports
The question
To ask the Chancellor of the Exchequer, what steps her Department is taking to help support small and medium sized enterprises with the cost of import charges.
Answered by James Murray
Small and medium sized businesses make a vital contribution to the UK economy. There are various arrangements in place that enable businesses to access reduced or zero import charges.
With regards to customs duty, the UK has a number of free trade agreements which enable businesses to benefit from paying reduced or zero customs duty. The UK also has several customs procedures which allow businesses to pay a reduced amount of duty on their imports, depending on what they are and what they do with them – for example, if they are importing them temporarily or repairing them.
VAT is due on all imports of goods into the UK at the same rate as domestic transactions. This ensures imports cannot undercut UK businesses and does not represent an additional charge for businesses buying imports. VAT registered businesses are able to reclaim VAT paid upon import, in the same way as for domestic purchases, as well as making use of VAT accounting schemes to smooth cash flow.
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