Help Desk -
9717405332, 9599714297, 9810335381
Email
Password

Most-Brexit tariff could halt UK alloy exports to EU

Metal News - Published on Fri, 15 Mar 2019

Image Source: The Guardian
Argus Media reported that the potential tariff imposed on British exports to Europe after the UK leaves the European Union could halt UK secondary aluminium alloy sales to the continent. Some secondary alloy producers have already stopped exports to Europe because of the uncertainty.

One producer said that "We are not doing any business until there is clarity with Brexit. We might end up having to pay tariff and taxes. After March 29 we will not sell anything for April, If you get hit by taxes, you will be losing money, we are not in it to lose money.”

The producer added that he is checking with British commerce and tax authorities to find out more about post-Brexit trading requirements.

UK producers exporting to Europe will also require a value added tax number in the country they are trading in after Brexit. This will also incur additional costs.

As part of the EU trading bloc, UK producers did not have any duty imposed on secondary aluminium alloy exports to the EU. But if Britain leaves the EU on 29 March without a withdrawal agreement in place, this "hard Brexit" will mean metal deliveries between Europe and the UK will be subject to customs clearance and duties. A 6pc duty will be imposed on UK aluminium goods exported to the EU, for example.

The UK is a major secondary aluminium alloy producer and exports to the EU are key for many domestic remelters. Secondary alloys 226 and 239 are used to manufacture automotive engines and gearboxes.

The UK exported GBP 1.2 billion (USD 1.59 billion) of aluminium goods to the EU in 2015, according to the Office for National Statistics. These included secondary alloy, engines and vehicles.

A second UK producer said one alternative means of selling to the EU was to "quote duty-unpaid" prices and transfer responsibility for payment of customs duties to the buyers.

Source :

Posted By : Rabi Wangkhem on Fri, 15 Mar 2019
Related News from Metal segment