No deal Brexit tariffs a “mixed bag for fashion”

The UK Fashion and Textile Association (UKFT) has stated that the ‘no deal’ Brexit tariffs announced by the UK government is “a mixed bag for fashion” and will impact exporters, as well as imports from Turkey, which is a major supplier to the UK fashion industry.

The temporary tariff plan in the event of a ‘no deal’ Brexit includes around 80 fashion tariff lines that will attract import duties, however, all yarns and fabrics would come in duty free. With exports to the EU attract tariffs of between 6 and 12 percent.

Key worries includes Italian wool fabric being able to enter the UK duty free, while British woollen and worsted manufacturers would face an 8 percent duty rate selling in to Italy, and imports from Turkey would be 12 percent more expensive.

The UKFT notes that the tariffs are said to be temporary, with the Government set to “closely monitor the effects on the UK economy,” however, the rates are expected to apply for up to 12 months, while a full consultation and review on a permanent approach to tariffs is undertaken.

“This is a very significant change and if we do leave without a deal, leaves businesses with very little time to prepare,” said Adam Mansell, chief executive of the UK Fashion and Textile Association in a statement. “There will be product on the water now that will be affected by these potential changes.”

UKFT and British Retail Consortium respond to ‘no deal’ tariff plan

Mansell added: “It is also a very mixed bag for the fashion and textile sector. We welcome the Government’s commitment to help developing countries through the continuation of the GSP scheme but the reality of a no deal Brexit, at least in the short term.

“We are also very concerned that the Government has completely failed to replicate the deal the EU currently has with Turkey. Turkey is a major supplier to the UK fashion industry and under this proposal many imports from Turkey would be 12 percent more expensive overnight.”

The British Retail Consortium also responded to the ‘no deal’ tariff schedule, stating that while the Government had added “some clarity” they were also concerned about the tariffs on clothes and textiles.

“At last businesses have some clarity about the tariff schedule they will face under a no deal Brexit. Already hundreds of ships are on their way to Britain and are only now discovering what tariffs they may face,” said Helen Dickinson, chief executive of the British Retail Consortium. “Consumers look to be no better off as a result of a mix of tariffs and quotas on food and other products. We remain particularly concerned about tariffs on certain clothes and textiles – a good proportion of which consumers were getting tariff-free from countries like Italy and Turkey.”

Dickinson added: “However, it is the non-tariff barriers which will have the greatest impact on consumers. Tariffs, checks, and increased documentation requirements will all result in delays, higher prices, and reduced choice for consumers. This is an inevitable consequence of a no deal Brexit.

“The announcement that there will be no enforcement of custom checks and tariffs moving across the Irish border presents the biggest risk. Without these checks and controls, and with essentially a different tariff schedule in operation, the system would be a goldmine for criminals seeking to take advantage of a no deal Brexit.”

Image: by Daniel Diaz from Pixabay