UK-EU Trade and Co-operation Agreement Update

Posted on 4th March 2021

In late December 2020 the UK-EU Trade and Co-operation Agreement (TCA) was signed and agreed by both parties. As a result of the detail of the agreement there are some fundamental changes in the way that we can trade with partners and customers in the EU.

One of the major areas is regarding Rules of Origin (which determine the ‘economic nationality’ of a product). In the vast majority of cases, our products qualify for GB preferential origin. All our woven products (and several by products) continue to be manufactured in Scotland and there is no change to that policy.

However there are certain product groups,  because of the country of origin of the raw materials used, or because of manufacture of made up product, outside of Scotland, from cloth we produce in Scotland, where unfortunately the product route does NOT pass the rules of origin test as determined by the TCA (primarily in the rules concerning ‘double transformation’). As a result these products will attract duties on export to the EU (in the region of 8% on fabric and 12% on garments).

On our website we have now clearly identified products which DO attract duty by attaching a double asterisk (**) to the quality and product code.

On all invoices we will also provide a statement giving the importer of our goods, our EORI number and a declaration that except where otherwise clearly indicated by ** our products are of GB preferential origin.

All products marked  with a ** and exported to the EU WILL be subject to a duty ( 8% on fabric, 12% on garments) due to these regulations in the UK-EU TCA.

Can we reiterate that these rules ONLY affect customers in the EU and nowhere else in the world.