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UK removes tariffs on offshore wind parts from 1 April

From 1 April 2026, import tariffs on 33 goods used in the UK’s offshore wind supply chain will drop from 2–6% to 0%. Announced on 10 March by the Department for Business and Trade, the move is billed to save manufacturers millions a year and accelerate clean power build-out. (gov.uk)

The zero rates arrive via HMRC’s Authorised Use procedure: eligible imports used to make blades, rotors, cables and low‑voltage substation systems can be declared at 0% duty provided firms evidence end‑use within set timeframes. The conditional design is intended to stop goods drifting into other sectors. (gov.uk)

For factory P&Ls, the arithmetic is straightforward. A blade plant importing £10m of qualifying resins and pre‑pregs previously paying 6% duty keeps £600k. A substation integrator bringing in £25m of cables and switchgear previously at 2% retains £500k. That money can go to wages, tooling or bid prices.

The tariff list spans composites used in blades at 6% and a suite of electricals and cables at 2%, now both reduced to 0% when used for wind assets covered by the scheme. Government positions this as part of its Clean Energy Superpower mission. (gov.uk)

Critically, demand is there. January’s Contracts for Difference Allocation Round 7 secured a record 8.4GW of offshore wind capacity, expected to power the equivalent of around 12 million homes and mobilise roughly £22bn of private investment. Berwick Bank’s 1.4GW phase is among the winners. (gov.uk)

DESNZ also says offshore wind from AR7 clears at prices about 40% below the cost of building and operating a new gas plant. Combining that with zero duties strengthens the case for tighter supplier quotes over the next bid cycle. (gov.uk)

Importers should note: Authorised Use is a special procedure with strings attached. You must be UK‑established, hold or declare an authorisation, keep detailed records, and discharge goods within the permitted period or duty becomes payable. Occasional users can apply by declaration up to set value and frequency limits. (gov.uk)

Cash flow and pricing are the immediate levers. Finance directors will want to re‑cost bills of materials, refresh live quotations, and decide how much saving to pass through versus reinvest. Import VAT and any trade remedies still apply; this is a duty‑only gain.

For SMEs across blade, nacelle and cable lines-particularly in Humberside and the North East-the biggest upside is predictability. A clearer cost base supports mould upgrades, extra shifts and apprenticeship intake ahead of the 2027–30 installation peak tied to AR7 awards. That should also make domestic content plans more credible.

The window is tight. With 0% tariffs live from 1 April, operations teams have three weeks to confirm commodity codes, align suppliers on end‑use statements and brief customs brokers. Done cleanly, the policy drops straight to margin and improves bid competitiveness into the summer tender season. (gov.uk)

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