It is not yet clear whether the UK will leave the European Union with or without a deal. We do not currently know what a deal looks like but we do know what ‘no deal’ looks like and HM Government is attempting to prepare companies for that eventuality. UKFT is doing everything it can to make this process easier for fashion and textile exporters (and importers) by posting the most important documents and links here.
These are not the only ones but they are the most important for our industry. We will update them as information becomes available.
REGISTER FOR EORI NOW.
If you import or export to or from the EU you MUST register for an EORI number.
If there is a no deal Brexit you will not be able to trade with the EU without an EORI number.
If you do not have an EORI number your goods will be stopped at EU customs.
You will need an EORI number. It can take up to three days to be issued with an EORI number so you should apply now.
Registering for an EORI number is very simple and can be done here.
Having an EORI number allows you to:
trade goods into or out of the UK.
apply to be authorised for customs simplifications and procedures.
submit import and export declarations using software.
The UK Government has announced that around 80 fashion tariff lines will attract import duties under a ‘no deal’ Brexit scenario of between 8 and 12%. However, all yarns and fabrics would come in duty free.
The regime is said to be temporary, and the government is intending to closely monitor the effects on the UK economy. The rates would apply for up to 12 months while a full consultation and review on a permanent approach to tariffs is undertaken. Read more here.
In the event of a ‘no deal’ Brexit, exports to the EU will attract tariffs of between 6 and 12%. UKFT has a complete list of the likely WTO tariff rates for fashion and textile products in the event of a ‘no deal’ scenario. For information or advice on tariff rates, UKFT members should contact firstname.lastname@example.org.
HM Government Guides
The Department for International Trade (DIT) has created a new guide to help firms understand how to continue to access preferences where the UK has agreed trade continuity arrangements with partner countries, or through the UK’s Generalised Scheme of Preferences (GSP). It outlines the rules of origin requirements for traders if the UK leaves the EU with no deal.
The European Commission has also produced its own checklist for exporters to the UK but this would also be of interest for UK brands and retailers manufacturing in or buying from the EU. Among other things, the document states: Customs duties will apply to goods entering the EU from the UK, without preferences. Authorisations for customs simplifications or procedures, such as customs warehousing issued by the UK will no longer be valid in the EU27.
Finally, it also highlights that member states will charge VAT at importation of goods from the UK, exports to the UK will be exempt of VAT but UK VAT will be due on arrival.
There is no information on what the impact will be on tradeshow costs. Read the full guide here.
Protected animal products under CITES
Do you import or export items covered by the Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES)? These might be for example: vicuna yarn and other products, alligator hide or skin, certain furs or certain reptile skins. The latest guidance on trading and moving endangered species protected by CITES if there is no withdrawal deal is here.
Since the EU referendum, UKFT has been actively and regularly engaging with the Government. From The Prime Minster, The Rt Hon Theresa May MP to HM Treasury, the International Trade Select Committee and the Departments for International Trade, Exiting the EU, Culture Media & Sport and Business, Energy & Industrial Strategy respectively.
Additionally, we have and continue to collaborate closely with organisations such as the Engineering Employers Federation and the Creative Industries Federation. UKFT has given interviews regarding the potential impact of Brexit on the fashion and textile industry to a variety of national news outlets including Sky and BBC, as well as presented at numerous events.
Together with other trade bodies, UKFT wrote to David Davies in early March 2018 urging the Secretary of State to agree a transition period to ‘allow business to operate as usual and provide continuity and stability’.
UKFT welcomes the recent announcement on the transition agreement. This transition period gives the EU and the UK more time to agree on the details of a new trading relationship and allows industry to plan.
In the months ahead UKFT will continue to:
Push the industries key requirements around talent, trade, regulation, IP protection and access to funding
Lobby the government for support to help the industry seize the opportunities that leaving the EU may bring, including significantly increased funding for exports, more support for skills and training and meaningful support for UK manufacturing
In late November 2017, at the request of the Minister for Trade, UKFT Chairman Nigel Lugg brought together a group of leading industrialists to meet the Minister at the House of Commons to discuss the industry’s concerns over Brexit. The group included companies making for the automotive sector, a company making leading edge carbon fibre products for a wide range of application including the aerospace industry, the largest textile manufacturer in the UK, footwear companies, a leading designer, a multinational global brand, a manufacturer and supplier of textiles into the hotel and healthcare sector, a supplier of uniforms to the emergency services, one of the largest fashion suppliers to the UK and a small high-end accessories manufacturer.
Early January 2018 saw the publication of the draft Taxation (Cross-border Trade) Bill and the draft Trade Bill. The Taxation Bill sets out the framework that will allow the Government to establish a standalone Customs regime, so that the UK can set it’s own tariff schedule, charge duties, implement customs unions with other markets and to establish trade remedies, such as anti-dumping duties etc. Of particular note is that it includes a written commitment to replicate the EU’s GSP scheme, which should mean that the UK maintains duty free access to important supply countries such as Bangladesh, Laos, Sri Lanka, Pakistan and Vietnam. The Bill also starts to outline procedures around Rules of Origin and how the UK Government might replicate Outward Processing Relief. The Trade Bill will give the Government the ability to agree Free Trade Agreements, sets out the establishment of a Trade Remedies Authority, which will deal with issues such as anti-dumping and extends the power of HMRC to collect export data.
UKFT’s CEO also met with the EU’s Head of Representative to the UK in January to discuss the industry’s demands over the exit from the EU and the contents of a new trade deal. UKFT were able to demonstrate that the UK industry and the EU industry were aligned on all issues of importance and the Head of Representation agreed to feed UKFT’s views to the EU’s negotiating team.
International Trade Regulations
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The guide provides an overview of the clothing, footwear and fashion sector in the adult and children’s markets, the key regulations you will need to comply with as an exporter or importer and selected sources of further help and support.
It will show you how to research your export destination for a wide range of garments and products, comply with and benefit from tariffs and duties and meet the quality requirements for children’s clothing in particular.