This week, the British Beauty Council has written to James Murray MP, Exchequer Secretary to the Treasury, to spotlight the damaging effects of the current tariff loop holes in light of US tariffs
Currently, the UK currently allows shipments worth up to £135 to be imported from overseas without incurring customs duty, this is called a ‘de minimis rule’.
In light of the increased tariffs introduced by the US government, as well as the removal of its $800 de minimis rule for goods shipped to America from China and Hong Kong, there is increasing risk of ‘product dumping’ in the UK.
It’s thought that due to these changes products usually meant for US shores will be redirected to the UK as they now face increased costs. In fact, this has already been witnessed, with the British Independent Retailers Association warning of the increasing volume of Chinese products flooding the UK market via online platforms.
The British Beauty Council is calling on the Government to review its current de minimis rule. In a letter, the organisation says: ‘(This influx of products risks) undercutting UK products without the robust regulatory safety guarantees that provide much valued assurance to British consumers. This poses serious risks to UK retailers and manufacturers particularly at a time when the industry is already grappling with unprecedented financial pressures.’
By reviewing this de minimis ‘loophole’, the playing field for all imports will be levelled. This will prevent products that do not meet the high cosmetics standards of the UK from entering the market, not just from China but globally.
The letter continues: ‘With the EU moving towards abolishing its de minimis thresholds and strengthening its product safety controls, there is a significant risk that the UK becomes a target for non-compliant and displaced stock, further threatening the integrity of our retail ecosystem.’
This comes as the EU has announced that it has received more than 4000 reports of dangerous cosmetics products over the last year, the most since 2003. Cosmetics products received the most flags, spotlighting the unique challenges facing the sector.
Along with the British Retail Consortium, the British Beauty Council welcomes a review of current tariffs which support domestic producers at risk from surplus US supplies being dumped on our market.
You can find out more about recent tariff updates in this article.
