OUR CORONAVIRUS RESPONSE
OUR CORONAVIRUS RESPONSE

China/US trade spat offers origin opportunities for UK

It has been widely reported that the US and China are imposing significantly increased tariffs on each other’s goods, resulting in significant cost for business as well as huge losses in share values for companies embroiled in these measures.

Many of these companies have operations in other countries and are able to consider the possibility of moving some production away from China and the US so that manufactured goods will no longer have an offending origin.

This might sound straightforward but where there is a need to maintain manufacturing activity in China or the US, simply routing the goods via a third country won’t change the origin.

However, there are certainly opportunities for a degree of processing to be undertaken in third countries, which in some cases may be sufficient to confer the origin of a third country, such that exports to the US or to China can then be undertaken without generating a liability to punitive tariffs.

The UK has strong trading relationships with both China and the US, so is well placed to optimise the opportunity presented by the ongoing dispute between them.

Further processing in the UK of goods which started their lives in China or the US could not only minimise the duty cost on their final import into China or the US but can also be done without incurring customs duty in the UK.

If your business is affected by the US-China trade dispute, and you would like to explore ways of avoiding the additional customs duties, please get in touch.

Awards & Affiliations

Client Testimonials
  • I always get quick, clear and definitive responses from the Harwood Hutton tax team – commercial answers to commercial issues.

    Robin Berry – Morgan Management
  • Right from the outset Harwood Hutton gave us direction and great advice – and that advice has evolved over the years as we’ve grown. We’re both medium-sized companies providing a bespoke service – one furniture, one accountancy – and the relationship works.

    Andy McCarron, McCarron and Co
  • I’m deeply impressed with Harwood Hutton’s extensive knowledge of tax arrangements for residential and commercial property landlords.

    Qadeer Ahmed, MD, ABA Finance
  • They really took their time to understand what was important to us and our business and the expertise we required. Whoever we speak to at HH, we get the same fantastic response and technical input. It’s a real partnership.

    Edward Finch, group MD, MRIB insurance brokers
  • I have worked with the directors at Harwood Hutton on a number of mutual client matters over many years. The reassurance of their clear, commercial and focussed advice is one of the main reasons I regard this as one of my most valuable professional relationships.

    Frank Wessely, Partner, Quantuma LLP
  • Harwood Hutton never seem to rest on their laurels. They are always seeking out new avenues and ways to improve their offering. A very forward-thinking company with staff who are always well briefed and who approach each task with drive.

    Karl Austen, MD, Surefoot Communications
  • We have engaged Harwood Hutton in several areas of structuring, including VAT issues, decoupling an SPV from a group structure and HMRC clearance for a transaction. The team have exceeded all expectations by being proactive, measured and very thorough.

    Adam Fawsitt, Director, FHT Limited
  • We moved to Harwood Hutton as they delivered a succinct and professional proposal. If anything, we have been more impressed post-move. They are a fantastic company to work with. They do truly differentiate. They have the skills and capabilities of a mega firm but with a personal service.

    Edward Finch, group MD, MRIB insurance brokers
Sign up to our Newsletter

Sign up to our Newsletter

newletter image

Newsletter sign up

Join our mailing list to receive important news and insights for business leaders and private individuals