Brexit: New Plans for Plastic Import Duties

The continued uncertainty surrounding Brexit has affected every industry. A recent move by the UK government has, however, helped to clarify some issues. The government has announced that, in the event of a no-deal Brexit, all plastic raw material imports (excluding PET resin used to make bottles) would not be subject to duty for an initial period of 12 months, after which time the situation would be carefully reviewed.

Plastic Engineering and Plastic Laser Cutting Machines

In the UK, the installed capacity to manufacture plastic raw materials stands at 1.6 million tonnes per year, just half of the requirement from plastic convertors which is 3.2 million tonnes per year. When exports of plastic raw materials and polymers/grades not currently produced in the UK are taken into account, estimates show that British plastic processors are up to 80% reliant on imports.

To date, most of these imports either come from EU countries or are stored in mainland Europe after being imported from elsewhere. As a current member of the EU, the UK can import these materials without duty. Materials imported from outside the EU are typically subject to an import duty of 6.5%.

The concern for UK-based plastic processors such as Partwell Group has been that, if the UK leaves the EU, raw material costs will increase due to added import duties. A further concern related to materials imported from outside the EU but stored within it: such materials could be subject to double-duty, resulting in a compound premium of 13% and dramatically affecting prices.

Whatever happens with Brexit, you can rest assured that Partwell Group will continue to supply plastics and plastic components at the most competitive price, with absolutely zero reduction in the quality of materials and workmanship. Find out more about our services on the website and do not hesitate to contact our team for advice and information.

 

14th June 2019, 8:00