LONDON (BBC): More than a month after the UK’s post-Brexit trade deal with the EU came into force, complaints from British importers and exporters continue to mount.
Rules of origin for products that are imported into the UK, then exported to the EU are causing difficulty for some firms. Others are caught up in the complexity of VAT issues, while the time and trouble taken to get merchandise through customs remains a hassle.
Small wonder, then, that according to a survey by the Road Haulage Association, Brexit-related problems caused the volume of exports passing through British ports to the EU to fall very sharply last month compared with a year ago.
A government spokesperson admitted that some businesses are “facing challenges with specific aspects of our new trading relationship” and promised to provide them with the necessary support “to trade effectively with Europe”.
“That’s why we are operating export helplines, running webinars with experts and offering businesses support via our network of 300 international trade advisers,” the spokesperson said.
The BBC spoke to three of the firms affected to learn more about the particular challenges they are facing. “We have to take a hit and blindly support our customers,” says Nisha Menon, whose company, Nikasu Foods, specialises in Indian snacks and meals.
It’s a family-run firm, started by her father 25 years ago. She took over the UK and European side of the business 12 years ago. Her headaches began when the company that distributes her products in Greece complained about having to pay extra to receive its latest consignment of Jack & Chill jackfruit products.
These are vegan-friendly meals, including spicy burgers and biryanis, that are gaining popularity in the Greek market.
But like all the firm’s foodstuffs, they are manufactured at its two factories in India – and that’s where the problem lies.
Naturally, Nisha had to pay duty on the goods when they arrived in the UK. In the past, that would have been it, but now there is an additional tariff barrier. “Apparently because the product is not made in the UK, they now have to pay customs duty when they import it into Greece,” Nisha says. “They said, ‘We cannot increase the price, so you have to support us with that.'”
One solution would be to send the products directly from India to Greece, but because they are shipped in big containers, that would involve a minimum order of 10 tonnes, which is too much for the distributor to handle. “I’m very frustrated,” says Nisha, who is now considering dropping the EU market altogether.
“I’ve been told I don’t have to pay duty again, but the Greek customs don’t agree.”
