The government yesterday (20 September) published fresh advice on how companies can make use of the UK’s new freeports, which could yet open this year.
Following a call for bids last year, eight freeports were announced for England in the March budget.
Tax benefits
The advantages of freeports for companies include duty exemption, VAT suspension and simplified customs procedures.
There are also tax benefits on business rates and national insurance contributions (NIC), as well as easier planning procedures.
New guidance
The new government guidance explains how a business can move goods into or out of a freeport customs site in order to:
- get relief from duties and import taxes
- use simplified declarations processes to reduce administrative burdens
- choose which rate of customs duty to use if processing the goods changes their classification
Customs special procedure application
Guidance has also been published on when and how businesses can apply to use the freeport customs special procedure. Companies will need this if they intend to store or process goods in a freeport.
Applications for special procedures will open on 8 October 2021 and the government says it will update its guidance further then.
Declarations and tax
Further guidance has been published on how to declare goods and pay tax when using a freeport.
This includes detailed advice on:
- Declaring goods brought into a customs site
- Declaring goods removed from a customs site
- Declaring goods moved between different customs sites
- Declaring goods moved within the same customs site
- Receiving goods from another customs special procedure
- VAT on supplies in the customs site
Level up
It is hoped that the range of incentives and benefits on offer will attract firms to the selected freeports areas, which are generally those that the government is seeking to ‘level up’.
The eight freeports in England are:
- East Midlands Airport
- Felixstowe and Harwich
- Humber region
- Liverpool City Region
- Plymouth
- Solent
- Thames
- Teesside