Customs duties paid by UK businesses have jumped 64 per cent to a record £4.5 bln in the year to 31 January 2022. The rise comes as post-Brexit increases in customs duties begin to have effect for UK businesses and consumers.
The figures show that the last five months to 31 January 2022 are the five highest individual months on record for customs duties paid, with over £2.1 bln paid in that period alone. This is likely to be driven by businesses who chose to defer the submission of customs declarations because of the increased admin burden on the business.
Post-Brexit ‘Rules of Origin’ requirements mean anything sold in the UK by EU businesses must wholly or largely originate in the EU to be exempt from customs duties when it enters the UK. The figures could jump higher as the ‘Rules of Origin’ requirements become even stricter. On January 1st, the government introduced a requirement that importers must show a declaration about the origin of the goods at the point of entry. If a business cannot prove the origin, they may be liable to pay the full rate of customs duty and could face penalties.
Source: cityam.com
