In the Spring 2021 Budget the Chancellor announced a number of areas to be designated as Freeports. Those areas would have a number of direct and indirect tax advantages for businesses located there.
Among those advantages is relief from customs duty and the ability to make simplified declarations. HMRC have now published guidance for businesses planning to take advantage of the new procedures.
Freeport customs sites (also known as a ‘free zone’) are secure customs zones where you can import or export goods inside the UK’s land border, but where special import or export rules apply.
If you choose to use a customs site to import or export goods, you may be able to:
- get relief from duties and import taxes
- use simplified declarations processes to reduce administrative burdens
- choose which rate of Customs Duty you use if processing the goods changes their classification
If your goods are purchased in the UK, you will continue to pay duties and import taxes using the normal UK rates.
If you are a business who wants to move goods into or out of a Freeport customs site, you will need to apply to use the Freeport customs special procedure (a single authorisation combined with easier declaration requirements) to import goods that are not controlled.
For more details see: Get your business ready to use a Freeport customs site – GOV.UK (www.gov.uk)