British
manufacturers could save millions of pounds in import duties
through an EU scheme promoted by the Department for Business,
Innovation and Skills (BIS).
Companies that are unable to source the materials they need to
manufacture their products from within the EU could be eligible to
import those materials duty-free by applying to the EU Duty
Suspensions & Tariff Quotas Scheme.
Currently UK companies save over €30 million per year through the
scheme - a figure that rose by €4.6 million in the first half of
2010. But this could rise even higher if more manufacturers were
aware of the scheme and how easy it is to apply.
BIS is urging UK manufacturing companies to take the opportunity
to find out more ahead of the 15 March deadline for the first
round of this year’s applications.
Lord Davies, Minister for Trade, Investment and Small Business
said:
"This scheme can help businesses save much-needed cash
during these tough times, offering them the opportunity to grow
and expand their company. It also makes a real contribution to
enhancing the competitiveness of UK manufacturing.
“Feedback from business shows the scheme is highly-valued and
easy to use, so I strongly advise firms to get in touch with BIS
to find out if their business can qualify."
Tom Brown, Technical Manager of Holders Technology, a
distribution company importing materials for the circuit board
industry, saved his customers thousands of pounds in import duties
last year by applying for the scheme on their behalf.
He said:
"I found the process straightforward and was impressed
at how smoothly it went. BIS were helpful and kept me updated on
the progress of the application. The successful outcome is very
welcome and strengthens the position of the UK circuit board
industry within the global market."
J.O. Sims, a UK fruit supplier, also succeeded in saving money by
accessing the scheme. Commercial Director, Kevin Matchett said:
“One of our partners felt the duty we had to pay to import
cranberries was unfair and to some extent was hampering the growth
of our business.
“Once we were in touch with BIS, they held our hand through the
process and having someone help us with the application made it
happen much quicker. We’ve found it so useful that we’re now
looking at some other products we import to see if there are
unfair duty loadings on those imported goods as well. “
Companies can find out more about the EU Duty Suspensions
& Tariff Quotas scheme at: http://www.berr.gov.uk/whatwedo/europeandtrade/importing-into-uk/duty-suspensions-quotas/page23164.html
Notes to editors:
1. To be eligible for the scheme, companies need to be paying
€20,000 or more a year in duties. However, companies bringing in
the same product can band together when applying for the scheme
2. The scheme suspends import duty if there is no EU
manufacturing of the raw materials or components concerned
3. There are currently over 1,200 duty suspensions across
manufacturing industries, including food & drink,
chemicals, plastics, leather, textiles, ceramics, metals, white
goods, electronics, automotive, scientific and medical equipment
4. Duty suspensions last five years and are automatically renewed
if there is still no EU manufacturing of the component
Department for Business, Innovation & Skills
The Department for Business, Innovation and Skills (BIS) is
building a dynamic and competitive UK economy by: creating the
conditions for business success; promoting innovation, enterprise
and science; and giving everyone the skills and opportunities to
succeed. To achieve this it will foster world-class universities
and promote an open global economy. BIS - Investing in our future.
Contacts:
BIS Press Office
NDS.BIS@coi.gsi.gov.uk
Una Flynn
Phone: 020 7215 5256
Una.Flynn@bis.gsi.gov.uk