On May 19 local time, the United Kingdom announced a new version of the tariff system after Brexit to replace the EU’s previous tariffs on foreign countries. What products are covered by the new tariff system? How does it affect the fastener industry?
Britain withdrew from the EU at the end of January this year but will follow the EU’s tariff plan during the transition period ending December 31, 2020. The new tariff system will be denominated in pounds sterling and will be implemented from January 1, 2021. It will provide a benchmark for the UK to negotiate free trade agreements with the European Union, the United States, and other countries.
According to the new tax system, from the beginning of next year, in accordance with the WTO rules and other current most-favored-nation treatment policies, 60% of British imports will enjoy duty-free treatment under the new tax system. For countries that have not signed a trade agreement with the UK, all tariffs below 2% will be eliminated.
The implication is that the products used in British products such as screws and bolts are reduced to zero tariffs.
This is undoubtedly good for fastener export enterprises.
Britain has always been called the “manufacturing country”. It is the first country in the world to complete the industrial revolution and has the reputation of being the “cradle of the modern industrial revolution.” Its strength in the aerospace, pharmaceutical, and automotive industries is strong, and the demand for fasteners is also large.
According to statistics, the top 4 main sources of fasteners imported from the UK are Germany (17%), the United States (14.2%), Taiwan China (13.3%), and Mainland China (10.9%). 55% of the UK imported the fastener market.
In 2019, the UK is the second-largest demanding country for importing Chinese fasteners among EU countries, second only to Germany. In terms of product types, the top three fastener categories exported from China to the UK in 2019 are other screws and bolts with a tensile strength below 800 MPa (73181590), and other screws and bolts with a tensile strength of 800 MPa And above (73181510) and nuts (73181600).