The UK Department for International Trade has announced a new UK Global Tariff (UKGT). Announced on 19 May 2020, this replaces the EU’s Common External Tariff on 1 January 2021 at the end of the Brexit Transition Period. As it pertains to the tyre business, while there are various categories, the announcement basically means the new UKGT sees tyre duty reduced from 4.5% to 4.0%. Camel back rubber for use in retreading stays at 0%, while duties cushion industrial tyres are reduced to 2.0% from 2.5%.
In addition to impacting upon the UK’s automotive industry, a no-deal Brexit presents complications for online tyre and car parts businesses. To gain an insight into changes in customer purchasing habits as Brexit approaches, courier express parcel company DPDgroup tasked market research institute GfK with assessing trends in e-commerce. GfK surveyed 24,258 e-shoppers in 21 European countries on behalf of DPDgroup. What it found was that the payment of additional taxes and duties, as well as longer delivery times, could prove a stumbling block to the future development of cross-border e-commerce in Europe.
With fewer than 20 days to go before the UK is due to leave the EU, the British automotive industry is urging an end to talk of ‘no deal’ and for all sides to focus energies on an orderly withdrawal to safeguard jobs and the sector’s long-term survival. The call comes as the Society of Motor Manufacturers and Traders (SMMT) publishes the results of a new survey revealing the escalating fears of an industry dependent on free and frictionless trade with the EU.
No review of 2016 would be complete without some reference to Brexit. Before the referendum result on 23 June, few people thought it would happen. Now the vote of 52 per cent in favour of leaving the European Union has long been counted, we can’t avoid talking about Brexit. Furthermore, with Donald Trump having won the US presidential election on 8 November in what he predicted would be “Brexit+++” the impact of the UK vote has taken on even greater significance.
As the government moves towards its April 2017 article 50 declaration, the automotive industry is calling on politicians to ensure the car business is left with the structures it needs to prosper.
With this in mind the RMI is specifically calling for a free trade deal to support the industry’s future: “With the UK in a period of uncertainty, we are urging government to engage with all sectors in our industry to prevent any uncertainty, encourage confidence and enable investment”, said RMI board member Colin Parlett, speaking at this year’s retail motor industry federation annual dinner in London tonight (20 October 2016).