Brexit has affected the way that our clients operate in the UK’s art and luxury market in one or the other way - an analysis of which we provide at https://www.charlesrussellspeechlys.com/en/news-and-insights/insights/private-wealth/2021/brexit-deal-impact-on-the-uk-art-and-luxury-market/. An example of this would have been the proposed introduction of red tape which would have replaced the seamless digital system for wine shipped to the UK from the EU (which accounts for about 55% of all wine consumed in Great Britain).
European wine producers currently have to register with national customs and then complete a special export declaration. VI-1 certificates are only required for wine imported into the EU from outside the bloc. On the receiving end, UK wine merchants were due, from the end of the Brexit transition period, to be faced with additional bureaucracy in the form of the proposes VI-1 certificate. Industry analysis suggests that this certificate would add a minimum of 10p to the cost of every bottle of imported wine. The impact would be particularly pronounced in relation to mid-priced wines which are often shipped in smaller quantities. The Wine and Spirit Trade Association (WSTA) have estimated that if the plans would have come into place, the import formalities would have cost a further £330 per wine shipment.
The wine business may now be able to breathe a collective sigh of relief, as the Department for Environment, Food and Rural Affairs has announced that the introduction of the requirement for VI-1 certificates has been suspended for wine imported from the EU. The WSTA has indicated that they would like to go even further and remove the requirements for import certificates from non-European countries, including Australia, New Zealand and South Africa.
"Cutting this needless red tape will place our businesses in a stronger position internationally, as they continue to grow, while consumers can raise a glass to great wine from around the world." - Food and Drink Minister Victoria Prentis