UKFT has published a new guide to the implications of Free Circulation: Tariffs payable on re-exporting to the EU for fashion and textile companies as part of our Brexit Guidance.

This is available to UKFT members. For more details on membership read more here  or contact info@ukft.org

One of the most unexpected results of the UK leaving the EU and the Customs Union for fashion and textile companies is that EU made goods shipped to the UK and cleared through customs into “Free Circulation” will attract duty if they are re-exported to the EU.

As an example – a UK brand buys UK or EU fabric, ships it to Portugal to be made into trousers and then brings those trousers back to the UK. All of the trade flows so far are tariff free. However, if a German consumer or an Italian wholesaler then buys those trousers there will be a 12% import tariff payable as the trousers enter the EU.

Our new guide for members covers:

• Which processes meet Rules of Origin requirements for major processing
• Ways to minimise the impact of this change
• The implications for goods imported into the UK from other countries, including those covered by UK Free Trade Deals
• When import VAT is payable

UKFT Brexit Guidance for the UK fashion and textile industry

UKFT has been working very closely with the UK government during all the negotiations with the EU. We know and understand how the UK-EU TCA will impact on UK fashion and textile businesses and we can help and advise companies on how to develop new strategies to ensure they can continue to trade successfully with the EU and the rest of the world.

Downloadable documents for members (published or updated in 2021) include:

• UKFT Brexit Guidance Toolkit
• UKFT Brexit Guide to Inward and Outward Processing Relief (IPR and OPR)
• UKFT Brexit Guide to the Implications of Free Circulation
• UKFT Brexit Guide to Returned Goods Relief
• UKFT Guide to ATA Carnets
• UKFT Guide to Rules of Origin for Trading with the EU
• UKFT Guide to Garment Labelling in the EU post Brexit
• UKFT Guide to the UK’s GSP
• UKFT Guide to the UK-EU Trade and Cooperation Agreement
• UKFT Guide to the UK-Japan Free Trade Agreement
• UKFT Guide to the UK-Canada CETA Free Trade Agreement
• UKFT Guide to the UK-Turkey Free Trade Agreement

UKFT BREXIT GUIDANCE