BCC Press Release: Customs reform needed as import rules change

Responding to news of the Government’s plan to widen customs charges to low value goods entering the UK, William Bain, Head of Trade Policy, said: 

 
“This has been on the cards for a while as the US has already made this change and the EU will do so at the start of January. 
 
“If the UK did not follow suit, then it would risk significant trade diversion of goods from China as they would become more expensive to sell in those other markets. 
 
“There will be winners and losers from this move. Many High St and online retailers have complained about unfair competition from Chinese manufacturers which can significantly undercut them. 
 
“The Treasury estimates that almost £6bn of goods that currently enter the UK without having to pay customs duties would be covered by this change. That would raise at least an extra £500m for the Exchequer every year. 
 
“On the losing side are regional airports, which have been major beneficiaries of the surge in freight flights carrying these goods from China. Airports like Prestwick and Bournemouth have seen a big rise in freight traffic from China and additional work as a result.  
 
“In making these changes from 2029 it is important the Government keeps a level playing field with the EU and US to maintain our strong trade ties. 
 
“But in a world of increasing trade complexity the government should use this opportunity to make more comprehensive customs reforms. 
 
“To grow our economy, we must make it quicker, simpler and cheaper to bring in and export goods from the UK. The EU is already conducting the biggest customs reforms in a generation, and the US is changing the role of its customs agencies too.  
 
“The UK needs a modernised rulebook, the rollout of digital trade corridors with a wide range of trading partners, a clear timeline for a Single Trade Window, and better customs co-operation with the US and EU.  
 
“These changes on customs duty charges should be part of that, so all businesses benefit from lower costs and greater efficiency in trade.”