Publications featured in include: City AM and The Independent
The rise comes as post-Brexit increases in customs duties begin to bite for UK businesses and consumers.
The figures show that the last five months to 31 January 2022 are the five highest individual months on record for customs duties paid, with over £2.1bn paid in that period alone. This is likely to be driven by businesses who may have struggled to pay customs duties earlier in 2021 and were able to defer paying until recent months.
Post-Brexit ‘Rules of Origin’ requirements mean anything sold in the UK by EU businesses must wholly or largely originate in the EU to be exempt from customs duties when it enters the UK.
The figures could jump higher as the ‘Rules of Origin’ requirements become even stricter. From January 1st, the Government introduced a requirement that importers must show a declaration about the origin of the goods at the point of entry. If a business cannot prove the origin, they may be liable to pay the full rate of customs duty and could face penalties.
Michelle Dale, Senior Manager in our Manchester office, says: “This shows how the post-Brexit increase in custom costs to UK consumers is really biting. The cost of tariffs and extra paperwork is causing serious difficulties for many businesses, who are already struggling to stay profitable in the face of mounting pandemic-induced costs.”
“Over the past year custom duties have been a hugely significant additional cost for many businesses. For a lot of them, custom duties have taken a big bite out of their profitability. Businesses who import and export goods between the UK and EU might be questioning whether their business models are viable.”
