More than six months have passed since the UK and European Union wrapped up a Christmas Eve deal on post-Brexit trade, amid fanfares of provisions for zero tariffs and zero quotas on goods. Yet retailers are only just starting to bear the brunt of its impact, and the worst is apparently yet to come.

UKFT’s Brexit Survey

 

The UK Fashion and Textile Association’s (UKFT) Brexit Survey, which surveyed 138 businesses, including leading UK fashion brands, UK textile manufacturers, wholesalers, fashion agencies, garment manufacturers and retailers in May 2021, and due to be published in July, found:

 

• 98 percent are experiencing increased bureaucracy as a result of Brexit

• 92 percent are experiencing increased freight costs as a result of Brexit (COVID-19 may also be a contributory factor here)

• 83 percent are experiencing increased costs and bureaucracy around customs clearance

• 74 percent are experiencing increased costs generally associated with Brexit. The vast majority of them are looking to pass these costs on to consumers in the next six to 12 months

• 71 percent currently import from the EU

• 53 percent are experiencing cancelled orders as a result of Brexit • 44 percent have experienced rejected or returned goods where the costs of duty, clearance and VAT are the main reason

• 44 percent had been affected by unexpected duties when re-exporting goods (this is the free circulation issue)

• 41 percent had been hit by double dutie

• 7.5 percent said they plan to relocate production from the EU to the UK in the next 12 months

• 6 percent said they have relocated production from the EU to the UK as a result of Brexit

 

Six months into the UK’s trade deal with the EU, the industry has continued to struggle with administrative and cost challenges. Despite delays to the implementation of the border-operating model, which will bring further administrative work in January, the impact of Brexit on the UK fashion industry is far from over.

 

Source: drapersonline.com