10 UK Export News You Might’ve Missed – Week 27
(Also published on LinkedIn)
In this edition of Export News from Expordite, we’ll cover the top 10 UK export news and headlines from week 27 of 2023 — July 3-9, 2023.
Key News:
- £373 Million Support to Put UK Exporters at Heart of Zanzibar Infrastructure Upgrades
- UK SMEs Still Running into Post-Brexit Hurdles Despite Claims of Trade Success
- UK Animal Product Exports to EU Will Soon Need Vet Signed Declarations
General Export Updates
1. £373 million support to put UK exporters at heart of Zanzibar infrastructure upgrades
“UK government backing has enabled a financing package of €422 million – equivalent to £373 million – for transformational infrastructure projects driven by UK exporters across Zanzibar, Tanzania.
The financing was underwritten by UK Export Finance (UKEF), the UK government’s export credit agency, and enables two major projects: a historic upgrade to Pemba Airport – the smaller of two airports on the Zanzibar archipelago – and improvements to 103km of roads which will support connectivity and prosperity across Pemba and Unguja islands.
The terms of UKEF’s backing mean that these major projects are expected to create over £100 million in export opportunities for UK companies. This is a significant achievement in the context of UK exports to the whole of Tanzania, which totaled £275 million last year. This development will be a boost for the UK’s construction sector in particular, supporting this government’s priority of growing the economy.”
Source: GOV.uk
2. UK Minister for International Trade visits Bangladesh to strengthen trade and investment ties
“The UK is committed to working with Bangladesh to create a trade and investment relationship that will create jobs and grow both economies. The total trade in goods and services between the UK and Bangladesh reached a record £4.7 billion at the end of 2022.
Minister Huddleston will meet Salman F Rahman MP, Private Industry and Investment Adviser to Honourable Prime Minister Sheikh Hasina. They will discuss the Aviation Trade and Investment Partnership, signed by the UK and Bangladesh in May 2023, which will strengthen Bangladesh’s aviation sector and create jobs in both countries.”
Source: GOV.uk
3. Don’t fall foul of HMRC by breaching export control laws – Stacy Keen
“Export control breaches are criminal offences, but the 1979 Customs and Excise Management Act allows HM Revenue and Customs (HMRC) to “compound” offences and offer civil settlement penalties in lieu of referring the matter to the Crown Prosecution Service.
A compound penalty can be up to three times the value of the goods exported, but a significant discount can be offered if breaches are disclosed to HMRC on a voluntary basis and there is full cooperation in any investigation conducted by HMRC.
In recent years there has been an upward trajectory in the value of compound penalties issued. In February 2023, four other compound settlements totalling £3.6m were made by UK exporters who breached the regulations, the largest of which was £1.8m which related to the unlicensed export of military goods, according to the Institute of Export & International Trade. Other fines of £1m, £994,000 and £745,000 were levied in respect of unlicensed exports of military goods and dual use goods.”
Source: The Scotsman
4. UK SMEs still running into post-Brexit hurdles despite claims of trade success
“Last week, minister for industry and economic security Nusrat Ghani claimed that, since leaving the single market, UK trade had climbed 24%.
And UK-EU trade hit a record high, in cash terms, in 2022 versus 2019, up 24%, with imports up 36%. However, export figures look far less impressive, dropping from 40% as a proportion of UK trade to 36%, with total export trade to non-EU countries down 10% over the period.
But one UK SME trader told The Loadstar: “Maybe for big business, there may be higher figures. But for SMEs, it’s the reverse.
Data provided by the FSB indicates that some 9% of SMEs have ceased international trading since 2018, with 45% of federation members claiming they felt abandoned by government.”
Source: The Loadstar
5. UK to Sign Pacific Trade Deal, Shifting Focus to China
“The UK is set to sign a Pacific trade deal in Auckland next weekend, formally becoming the first new member since the framework came into force, and shifting attention to a list of other applicant countries headed by China.
The signing will take place at a ministerial meeting of members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, hosted by New Zealand, according to a press release from the country’s ministry of foreign affairs and trade. The event is scheduled to take place July 15-16.”
Source: Bloomberg
6. Excise Notice 85c: anti-forestalling restrictions on tobacco products
“This notice is an anti-forestalling notice made under section 6A(1) of the Tobacco Products Duty Act 1979. Removing tobacco products for home-use in contravention of the restrictions set out in this notice attracts a civil penalty under section 6B of that Act and section 9 of the Finance Act 1994.
This notice explains the restrictions on the quantity of tobacco products that can be removed to home-use in the period before an anticipated duty rate rise. It explains how we interpret the law.”
Source: GOV.uk
7. UK construction received £1.1bn export credit last year
“Overall, UKEF – the government’s export credit agency – provided £6.5bn in new direct support to UK exporters in 2022-23. The financing, provided through loans, guarantees and insurance policies, has supported up to 55,000 domestic jobs and added £4.1bn (gross value added) to the UK economy.
The £1.1bn provided to construction exporters has support up to 5,000 jobs – a 25% increase on last year’s figures, says UKEF.
The agency is now supporting more SMEs than at any time in the past 30 years. It says that 84% of firms directly supported with a UKEF product were small and medium-sized businesses, while 82% are located outside London.”
Source: The Construction Index
8. Maersk Announced Substantial Rate Increases on the Popular Asia-North Europe Lane
“To continue offering you a broad portfolio of high-quality services, we are announcing an increase in FAK rates (Freight All Kinds) to come into effect on 31st July 2023.”
Source: Maersk
Food Export News
9. UK animal product exports to EU will soon need vet signed declarations
“UK animal product exports to the European Union will soon need vet signed declarations, farmers have been reminded.
Non-assured UK livestock farmers will be required to provide a declaration signed by a veterinarian following an annual farm visit in order for their products to be eligible for export to the EU.
The new requirement, taking place from 13 December 2023, is due to an EU animal health regulation change mandating farms producing animals or products of animal origin (POAO) for export to have regular veterinary visits.
To obtain the declaration, the AHDB explains that farmers must undergo regular animal health checks conducted by qualified veterinarians.”
Source: Farming UK
10. Michigan brewery joins ‘cheeky’ U.K. promotion highlighting America’s independent craft beer
“Saugatuck Brewing Co. has joined a contingent of U.S. brewers in an exclusive summer promotion highlighting independent American craft beers via a large U.K. chain retailer.
Launched by the Boulder, Colo.-based Brewers Association trade group, the “Celebrate Independence” promotion will position Douglas-based Saugatuck Brewing Co. to sell three of its beer brands at more than 275 Home Bargains stores across the U.K. The chain operates some 550 locations across the country.”
Source: Crain’s Grand Rapids
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