Food industry faces 9.3bn tariff bill under a no-deal Brexit
Last year, the UK imported 48bn worth of food and drink
Food retailers and their suppliers could face a 9.3bn blow under a “no-deal” Brexit, a study has claimed.
A new Barclays Corporate Banking report has revealed that a failure to reach any Brexit deal will create an average tariff of 27% on products imported from the EU for food and drink supply chains.
There would be varying tariffs for different types of products. For example, the Barclays report showed that fully processed food and drink products, such as orange juice, will attract the highest tariff rate of 31% compared to 29.5% for semi-processed food and drink such as white sugar, and 9.7% for primary products and raw materials like bananas.
The report Scale, Disruption and Brexit a new dawn for UK food supply chains? said the new tariff would be significantly more than the 3-4% levy that would hit non-food products. Additionally, every consignment of goods from the EU will require a customs declaration which starts at a minimum of 50.
Last year, the UK imported 48bn worth of food and drink, approximately 40% of the total UK market. Of these, 71% originating from within the EU entered the UK free of customs duties and other trade costs.
__________________________________________________________________________________ HMRC publishes VAT guidance in the event of no-deal Brexit HMRC has released guidelines to make business owners aware of both immediate and long-term changes if no trade agreement is struck with the EU.
The Food and Drink Federation has highlighted that preferential trade deals are central to export success post-Brexit as the EU27, and the countries with which it has trade agreements, make up the lion-share of Britain's food and drink export market.
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Last year, the UK imported 48bn worth of food and drink
HMRC publishes VAT guidance in the event of no-deal Brexit
