BICS eligibility: why SIC and HS codes matter

The British Industrial Competitiveness Scheme (BICS) is becoming an important consideration for manufacturers facing high electricity costs. The proposed scheme is intended to support eligible manufacturing businesses through exemptions from certain indirect electricity-policy costs. 

But before a business can consider an application, it needs to understand one key question: is it in scope? 

BICS, SIC codes and HS codes

For many manufacturers, the starting point will be their Standard Industrial Classification (SIC) code. This is the code recorded against a business at Companies House and is used to identify its principal activity. Under the proposed BICS approach, eligible SIC codes will help determine whether a company operates within a qualifying manufacturing frontier or foundational industry. 

That is only part of the picture. 

For many frontier industries, businesses will also need to identify the Harmonised System (HS) codes for the products they manufacture. HS codes are internationally recognised product classifications, commonly used in import and export activity. They can be less familiar to manufacturers that do not regularly trade overseas, but they are expected to play an important role in demonstrating that a business produces eligible goods. 

The combination matters. A relevant SIC code alone may not be enough if the products manufactured do not fall within the qualifying scope. Equally, a business producing relevant products may need to ensure that its SIC classification accurately reflects its activity. 

This is why early preparation is so valuable. Start by reviewing your Companies House SIC code, then build a clear list of the products you manufacture and their likely HS codes. It may also be helpful to retain product specifications, sales data and other evidence that links your business activity to those codes. 

Why Manufacturers should prepare early

Manufacturers should BICS is designed to target manufacturing activity, not simply a company’s name or sector label. The more clearly a business can evidence what it does and what it produces, the better placed it will be when the final eligibility lists and application process are published.

Get in touch with our team to learn more about BICS and your eligibility.