Philip Davies – 2016 Parliamentary Question to the Department for Business, Innovation and Skills

The below Parliamentary question was asked by Philip Davies on 2016-03-24.

To ask the Secretary of State for Business, Innovation and Skills, if he will make an assessment of the potential costs and benefits of introducing an import tax on coal and gas imported from outside the EU; and if he will make a statement.

Anna Soubry

The UK is part of the EU Single market which has a common EU tariff policy which applies to all imports. Import tariffs are set by the EU. The UK has no legal ability to set its own import tariffs.

EU tariffs rates form part of our World Trade Organisation (WTO) commitments and apply to all WTO member countries. Under WTO rules increases to EU tariffs above the level committed to, or ‘bound’ rate, require us to give compensation to affected countries (in the form of lower tariffs on other products). Any potential benefit of an import tariff increase may therefore harm another UK sector.

The latest version of the EU tariff was published in Official Journal to the EU L285 on 30 October 2015 (Council implementing Regulation EU No 1101/2014 amending Annex I to Council Regulation (EEC|) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff). Chapter 27 covers the import of fuel including coal and gas. The import of coal has a 0% import duty and the import of gas ranges from 0% to 8% depending on the type and usage.

WTO rules, do however allow countries to impose import tariffs when goods are being “dumped” e.g. sold on our market at below manufacturing cost price. If there is evidence that imports of coal and gas are being dumped the European Commission could propose imposing anti-dumping duties.