This is about as clear as the wine trade can make it. @brexit is destroying the UK wine industry and bearing in mind the UK was the main international hub pre Brexit the pathetic reply from @Jacob_Rees_Mogg demonstrates just how out of touch he is. Now the facts.
The barriers to trade this wine trade professional refers to is the endless paperwork and costs it incurs. To be clear pre-Brexit their just one document an EAD for EU and three for non EU.
Today for EU there are 5 documents (proforma, EU EAD, EU MRN, UK CDS Entry with MRN UK and UK ARC) which all require specialist brokers or trained people to complete. To be able to complete and do the UK documents you need the following…
Registration with HMRC for CDS, Badge Numbers for RORO access, HMRC deferment Account, HMRC warehouse keeper number for both import and export, AWRS approval, Wowger registration for sale of alc, Access to HMRC to DDES for excise payment management, HMRC account for UK EMCS…
All of this just to maintain the flow, and trust me all of the above are not easy systems to be granted, your business must be able to prove its profitable to HMRC and have a perfect credit rating. So no wonder like me this guy was pissed off.
The government are trying their very best to make wine importation as difficult as possible and it’s no wonder EU companies don’t want to buy back UK bottled wine. They don’t want it because it’s a fu*king nightmare to deal with.
Then this guy also touched on the change of excise duty requirements. Again he is right. Currently we have three main levels of wine taxation. These are coded as 411, 413 and 415. This covers 99% of all wine. For CDS lovers just add an X.
So currently it’s very simple to charge the correct level of taxation, Mogg reply was dismissive “because it’s a treasury decision” to add 27 bands so that makes it ok! Erm no it doesn’t make it ok, it does make it unworkable however, and he knows it.
So when the speaker said they have taken something that worked well and broken it he was absolutely correct. But because these current Tories know #BrexitReality is killing the UK economy they lie at will.
So hopefully the electorate will force change back in the right direction. Moreover when you see your wine has increased by £2-£4 per bottle you can thank Brexit and the government for making importing so much more difficult whilst incurring unnecessary costs the public pays.
Finally don’t take my word for how bad Brexit is for the wine trade and how badly thought through the Alc reform proposal is. As a member of @wstauk like the speaker, our trade body has put forward endless factual documents explaining to government why they are wrong.
Moreover we should all remember that 99.1% of all wine in the UK is imported, of that 66.9% is from the EU and 9% is from Aus/Nz. So apart from the green issues, EU wine is preferred in the UK, and global wine production couldn’t cope with this changing dramatically. #facts.
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Last week in the UK I had very interesting conversations with a number of people working in various sectors of government. All of these people said the same thing, the pressure been applied to services is unsustainable.
Then you look at all the various unions that are taking strike action and you can only conclude one thing which is the UK is heading in the wrong direction. So the question is when will the change happen?
Yet still today to have a government in total denial about just how badly they are making it for every day people. Moreover they have been prove to be totally corrupt in the PPE scandal.
Over the past few weeks I have been visiting suppliers all over France. It’s been brilliant to see them after two years of covid restrictions. However the price increases coming in 2023 are massive. Here is why the increases will be so big.
The first problem for much of France has been another difficult growing season. 2021 was the lowest year from grape production in 75 years, 2022 has seen issues such as frost, hail and drought. Overall on average yields were 15-20% below normal levels.
So from a position where the ‘tanks’ were already very low and even empty another low yielding vintage means the producers had little choice but to increase prices as the demand far out strips the supply.
It’s been a while but nearly a year on I thought the trade shouldn’t forget about the Alcohol Reform Proposal. Here is a little recap from January 2022. independent.co.uk/news/uk/politi…
The report took into account all the loud trade professionals voices telling government their proposal was indeed ‘unworkable’. However at this stage it’s unclear what’s coming next. The plan is still due for implementation in Aug 2023. In which form is unknown.
So why is the government struggling with this proposal and potential law? Well it’s pretty simple really as we said it’s unworkable and more importantly couldn’t be policed. In fact the entire report finished saying HMRC won’t check if companies declarations are correct!
Today is the 30th anniversary of my company. On the 20th November 1992 I sold my first bottles to and tiny independent shop wine in Harrogate, North Yorkshire. Since then the ride has been amazing.
From my first sales I slowly built up my range of products and my first important break was to get the exclusive UK agency for @chateaufilhot. We still work with the De Vaucelles family today and it been a key part of my offerings for over 2 decades.
At one point I was selling @chateaufilhot to Sainsburys and also working night shifts at the same company to make ends meet. I never told @Just1nHS the wine buyer at the time. Funny we both live in Southern France now!
The UK should be moving quickly to being in the SM and CU. This resolves many of the UK’s issues at the borders. Moreover it sorts out many of the issues in NI.
It’s only now even the hardline right wing Brexit Tories can see the clear damage being inflicted on both imports and more so on exports. I work directly with the import and export systems and they are not coping.
Moreover a cartel of brokers have sent up since brexit started charging jaw dropping fees to clear consignments both in and out of the UK. None of this is helping inflation or every day working people.
Basically the trade has made it transparently clear the original proposal simply was unworkable. The government has understood that, which is good. But is, as ever, trying to fudge the new system with delays and small changes.
Moreover they are are basically saying they expect the importer to check ABV are correct but won’t check them themselves. I simply don’t understand why they won’t just listen to an industry that knows what would work.