In this week’s EU Exit Bulletin, the UK government proposes a review of customs tariffs in a bid to ease the cost-of-living crisis. We also bring you news of a recent study that finds that the UK’s departure from the EU has played a role in increased food prices. In other developments, further customs guidance has been added to GOV.UK and the Trader Support Service team are looking for feedback from traders on the supplementary declaration process.
UK to carry out a review of tariffs to ease cost of living crisis
The UK government has asked the Department for International Trade to draw up proposals for reductions in tariffs on products, such as food imports, as a possible measure to ease the cost-of-living crises. Food prices in the UK have increased by almost 6 percent in the past year. The announcement follows a decision by the UK government to further postpone checks on imported food and fresh products from the EU until the end of 2023.
The UK’s Trade Secretary Anne-Marie Trevelyan argued during a meeting of the international trade committee on Wednesday that tariffs contribute to only a “tiny, tiny” proportion of household costs, adding tariffs were not “where the key areas are” to help consumers.
Minister for Brexit Opportunities Jacob Rees-Mogg is reportedly behind the idea of tariff reductions, stating the UK’s ability to set its own trade policy is one of the benefits of leaving the EU. However, others argue that the difficulties experienced at customs borders by traders have contributed to increases in consumer price.
Study finds EU exit increased trade barriers for the UK
A study by research group ‘UK in a Changing Europe’ has found that the UK’s departure from the EU resulted in increased trade barriers with the EU, resulting in a 6 percent increase in UK food prices between December 2019 and September 2021.
During 2021, the volume of goods imported to the UK from the EU fell relative to imports from outside the EU. The report also found that EU exit has affected the production capabilities of UK businesses, citing that a fall in imports from the EU has resulted in less intermediate products or inputs being available for UK domestic businesses to produce output.
Stockpiling of pharmaceutical products, textiles, toys, and sports equipment was evidenced just before the implementation of the Trade and Cooperation Agreement.
The study ruled out the pandemic as a factor in price changes as “key events in the pandemic are not obviously correlated with the changes.”
Read the report.
New guidance on sending goods by post, courier or fast parcel operator added to GOV.UK
A new video ‘Exporting – sending goods outside Great Britain (including EU countries) by post, courier, or fast parcel operator’ has been added to GOV.UK. The guidance is applicable where goods are sent in parcels to consumers or businesses abroad.
Updated Guidance: Apply to import goods temporarily from GB into Northern Ireland
Traders that temporarily import goods into Northern Ireland from Great Britain need to apply for authorisation to use Temporary Admission customs procedures. Guidance about applying for authorisation by oral declaration has been updated on GOV.UK.
Supplementary Declaration Feedback – Survey
The TSS team is currently looking at ways to improve the trader experience of completing Supplementary Declarations through the TSS portal.
If readers would like to share their thoughts, please complete this short survey.
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