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.
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British businesses are urging the government to distribute the newly approved Oxford/AstraZeneca vaccine quickly to help companies get back on their feet after the Covid-19 pandemic.
While companies welcomed news that a second vaccine will be distributed from next week, they hope the roll-out will be fast to ensure businesses, such as retailers shuttered by heightened restrictions, can recover.
Adam Marshall, director general of the British Chambers of Commerce, said the vaccine offers “future hope” to businesses, but huge challenges remain while millions of people are under Tier 4 restrictions.
“Some light at the end of a long tunnel for businesses and communities across the UK. Let’s move quickly,” Mr Marshall tweeted.
Kent lorry chaos could get WORSE: Officials are performing as few as 200 tests an hour - meaning 10,000 stranded truckers could take DAYS to clear threatening food shortages after clashes with police and blockades
Truckers try to force their way past police guarding Port of Dover as hundreds leave cabs and walk along road
Jeering and whistling with some shouting: Open the border , We just want to go home and F you, Boris!
France announced travel ban on all traffic from UK on Sunday night after emergence of new Covid-19 strain
Decision meant Port of Dover was dramatically closed to all freight vehicles leaving the UK for next 48 hours
Testing, testing! UK and France wrangle over screening regime for truckers to get Dover moving again after Brussels calls for end to border blockade as 4,000 more lorries head for Kent carpark
France announced travel ban on all traffic from UK on Sunday night after emergence of new Covid-19 strain
Decision meant Port of Dover was dramatically closed to all freight vehicles leaving the UK for next 48 hours
UK and France still trying to agree on measures to reopen the border as hundreds of lorries queue in Kent
EU today urged European nations to drop travel bans on UK but said travel to Britain should be discouraged
Boris Johnson plans to test ALL lorry drivers taking goods across Channel in bid to appease Macron - after blustering through pointless press conference without giving a single answer about when truckers will be allowed into France
Port of Dover in Kent was dramatically closed to all freight vehicles leaving the UK for the next 48 hours
Hauliers coming to UK will still be allowed but there are fears drivers won t travel to avoid being marooned
Countries including France, Germany, Italy, Belgium and Poland have announced restrictions on UK travel
Comes after emergence of mutant strain of coronavirus in England which spreads quicker than predecessor