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Andrew Goodacre, chief executive of the British Independent Retailers Association (Bira), said the issue centres on the rule of origin of products.
Despite the tariff-free, EU-trade deal agreed on December 24, customs duty still applies to any goods ordered from the UK that do not originate in the country.
“Purely UK-made items would be tariff-free, but if there are products in that item ups that come from outside the EU and the outside the UK, then it may well incur a tariff,” Mr Goodacre said.
One Bira member who has cashmere sweaters produced in the UK and then exported to Europe, realised that because the original material comes from Mongolia, they were subject to a levy.
Regent Street in central London on Sunday. Photograph: Stefan Rousseau/PA
Retailers are calling on the government to step up financial support for businesses in the south and east of England which have been forced to close in the last days before Christmas.
The prime minister announced on Saturday afternoon that non-essential shops and services, including clothing, toyshops, electrical goods outlets and hairdressers, would have to close from midnight under new tier 4 restrictions. As a consequence thousands of outlets in the south including London, Kent, Hertfordshire, Berkshire and Surrey will be left with piles of unsold stock.
After a grim year for the high street, many retailers were relying on a last-minute rush to stores at what is normally the busiest trading period of the year. With the deadline now past for when most online retailers can deliver to homes before Christmas Day, shoppers usually turn their attention to th