Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to paragraph 161 of the White Paper, The future relationship between the UK and the EU, Cm. 9593, published on 12 July 2018, what the types of goods are which are likely to be included in the 4 per cent of the UK goods trade which will need to use the tariff repayment mechanism.

The government estimates that approximately 4% of UK goods trade in 2017 was of imports of intermediate goods from non-EU countries for which tariff differentials with the EU could arise from the UK’s independent trade policy. This trade will be most likely to use the repayment mechanism, since intermediate goods typically have longer and more complex supply chains than finished goods and are less likely to know their final destination or use at the point of import.

Examples of intermediate products that may use the repayment mechanism include car parts such as car batteries, machinery parts and industrial chemicals.