Brexit: the rule of origin, a first problem for British products
Goods made in China, for example, imported into the UK and then re-exported to the EU are now subject to tax.
REUTERS - PASCAL ROSSIGNOL
Text by: RFI Follow
2 min
A few days after the Brexit agreement negotiated between London and Brussels, the first disruptions begin.
British retailers who export products manufactured abroad to the EU are amazed to find they have to pay customs duties.
At the origin of this device, the rule of origin, whose impact is still difficult to assess, but which is already turning into a puzzle.
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Under the rule of origin, a good is subject to customs duty if it arrived from abroad on UK soil and then returned as is to a country that is a member of the Single Market and the Customs Union.
The Brexit deal provides for no taxes, but only for products made at least 50% in the UK.
However, this is not the case with clothing made in China, imported into the United Kingdom and then re-exported to the EU.
The industry, and in particular the automotive sector which nevertheless uses foreign components, seems less concerned at this stage.
Ireland is particularly exposed to these taxes.
Many British brands are located on the island.
Like the supermarket giant Tesco or Marks & Spencer which foresees a significant impact on its deliveries in Ireland, but also in
France
and in the Czech Republic.
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Read also: Brexit: the organization of future cross-Channel traffic is taking shape
The UK traders association, BRC, says around 50 of its members will face rising costs and may well overhaul their supply chains.
With consequences for consumers, but also risks for employment in the United Kingdom.
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To read also: Brexit: what changes (or not) for trade on January 1
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Brexit
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