Inverness and Cromarty Firth Green Freeport (ICFGF), one of Scotland’s two green freeports, has announced that the Port of Nigg customs site has now been fully approved by HMRC. All freeports must have at least one customs site. Approval of the Port of Nigg customs site is an essential step towards full approval of the ICFGF.
What is a freeport customs site ?
Within a customs site, there are simplified customs and VAT processes. These processes reduce the cost of handling goods which are entering and leaving the area. Businesses within the customs site benefit from duty suspension of imported goods unless and until they are imported into the wider UK market (i.e. until they are transferred out of the customs site into the UK). There are no export duties on products which leave the customs site to a country other than the UK or which are transferred for use in British waters outside a 12-mile territorial limit. Equipment and cargo can be stored at the customs site for long durations without incurring duties, and businesses can use a simplified administrative procedure for documenting the import and export of goods.
The Port of Nigg customs site will be particularly beneficial for business which are importing heavy engineering components for the renewable energy sector. ICFGF has confirmed that more custom sites could follow.
In addition to this customs site, five tax sites within the ICFGF area have already been approved (see details at this link). The tax sites were designated with effect from 8 April 2024. From this date, there are a range of tax reliefs and incentives for businesses operating in the tax site areas, including:-
- LBTT relief on the purchase or lease of qualifying non-residential land and buildings;
- enhanced capital allowances;
- a relief from employer's NIC for new employees; and
- 100% relief from non-domestic (business) rates.
Contributors
Director of Corporate Tax
Senior Solicitor
