The Courier & Advertiser (Fife Edition)
Drinks industry warned over export barriers post-Brexit
Call comes as Scotch Whisky Association marks ‘Duty Paid Day’
Scottish brewers and distillers have been warned they are risking future trade by failing to get a key accreditation that may help in minimising potential Brexit impacts.
Allan Bird of the customs and excise team at Campbell Dallas said just 700 UK firms had Authorised Economic Operator (AEO) accreditation, a key gateway to the export market.
Mr Bird said he is concerned at the lack of awareness of AEO status within the drinks sector and urged firms to address the issue to ensure they can continue exporting to the EU post-Brexit with as few obstacles as possible.
“The AEO status will help provide frictionless trade with the EU, and will be the benchmark for compliance with customs systems, controls and financial solvency,” Mr Bird said.
“Exporting without AEO status will become increasingly onerous, costly and unattractive, with the risk that many of Scotland’s thriving drinks businesses will find the export market less attractive.”
Statistics show Germany had more than 6,000 AEO accredited companies in 2017, with just 700 in the UK as a whole. Mr Bird added: “We have a long way to go and Scotland’s brewing and distilling companies need a great deal of support from the business community to ensure they become AEO-compliant as soon as possible.”
The warning came as the Scotch Whisky Association prepared to mark “Duty Paid Day”, the theoretical first day of the year in which duty and VAT on an average bottle is paid.
Scotch Whisky Association Chief Executive Karen Betts said: “Under the current excise and VAT rates, £3 in every £4 spent on Scotch whisky in the UK goes directly to the treasury in tax.
“To look at this figure differently, it has taken 270 days to pay off the 74% tax burden on the average-priced bottle of Scotch whisky in the UK.
“Tax on Scotch is unsustainable, has hit a ceiling and cannot reasonably rise any further. An increase in the tax burden would inhibit investment and undermine future growth.
“As we approach the Autumn Budget, we are urging the Chancellor to signal his support for Scotland’s national drink by continuing the freeze on duty he announced just last year.”