Connect with us

International

Brexit trade barriers add $600 million to UK importers this year | Brexit

 


Trade barriers that made the import of Marks & Spencers Percy Pig confectionery one of Brexit’s first victims have been revealed to have cost UK importers an additional $600 million since January.

According to HMRC data analysis, tariffs paid by British companies surged from $1.6 billion in the first half of last year to $2.2 billion in the same period this year.

Percy Pig confectionery was one of 2,000 food product lines affected by rules of origin regulations that came into effect on January 1st with the Brexit trade agreement.

In January, M&S raised the possibility that Percy Pigs could be subject to tariffs in Northern Ireland due to rules of origin. Although manufactured in Germany, it was initially re-exported to Ireland before being brought to England. This trip is now subject to import tax as the tariff exemptions for trade have disappeared as soon as it is exported.

The scale of the impact of these complex rules on importers is only emerging, and provides a lie to the notion that free trade agreements have no cost to business.

Since then, thousands of companies have found that under trade and cooperation agreements, the goods they import are subject to tax if not sufficiently manufactured in the EU.

Trade agencies are reporting that some companies are paying tariffs for ease of trading because the rules are so complex.

Michelle Dale, Senior Manager at UHY Hacker Young, an accounting firm, said:

As a result, tariffs and additional paperwork costs are creating serious challenges for many businesses already struggling to remain profitable in the face of rising costs caused by the pandemic.

The increase in tariffs paid is directly attributable to Brexit because the UK did not pay for goods imported from the EU while it was in the single market.

Under trade agreements, most goods produced or processed in the EU can be imported without customs duties, although there are some differences between the products.

The Percy Pig problem is still a problem for importers over 8 months. William Bain, head of trade policy at the British Chamber of Commerce, said: “Across the board, companies are still struggling to figure out the rules of origin.”

If the exporter fails to provide a certificate of origin, the importer may not be able to provide sufficient evidence of the origin of the product, and some say it is easier to pay customs duties.

Fergus McReynolds, director of EU and international affairs for Make UK, which represents manufacturers, said companies are still grappling with rules of origin and the import duties they have to pay.

We didn’t actually see the black and white of the text until Christmas Eve, he said, and didn’t give the company much time to understand the meaning.

He added that there is anecdotal evidence that some companies have found the process difficult and are opting for the option of paying tariffs for ease of trading in order to continue trading.

HMRC Customs Receipts Analyzed by UHY Photo: UHY Hacker Young

Rules of origin apply not only to raw materials, but also to products that have been modified in EU countries and contain ingredients or components outside the EU.

If it is deemed not sufficiently processed in the country, it may not comply with rules of origin, McFergus said.

Manufacturing Northern Ireland also identified difficulties with local traders importing from the UK.

Earlier this year, the trading group’s CEO, Stephen Kelly, told a selection committee for an automaker that was buying axles from a German supplier.

Due to special measures for Northern Ireland that comply with EU rules, the trade should not be subject to customs duties. However, the origin exemption rules did not apply because the axles were first sent to the UK for modification.

Sources

1/ https://Google.com/

2/ https://www.theguardian.com/politics/2021/sep/13/brexit-trade-barriers-added-600m-in-costs-to-uk-importers-this-year

The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos

ExBUlletin

to request, modification Contact us at Here or [email protected]