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<p>The Facilitated Customs Arrangement (FCA) would remove the need for customs processes
between the UK and the EU, while allowing the UK to set its own tariffs for goods
imported from non-EU countries.</p><p> </p><p>Where a good reaches the UK border,
and the destination can be robustly demonstrated by a trusted trader, it will pay
the UK tariff if it is destined for the UK and the EU tariff if it is destined for
the EU. This is most likely to be relevant to finished goods.</p><p> </p><p>Where
a good reaches the UK border and the destination cannot be robustly demonstrated at
the point of import, it will pay the higher of the UK or EU tariff. Where the good’s
destination is later identified to be a lower tariff jurisdiction, it would be eligible
for a repayment from the UK Government equal to the difference between the two tariffs.
This is most likely to be relevant to intermediate goods.</p><p> </p><p>The government
is seeking to maximise the number of traders who will not need to interact with a
voluntary repayment mechanism. It is estimated up to 96 per cent of UK goods trade
would be most likely to pay the correct or no tariff upfront.</p><p> </p>
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