A new report by UK Fashion and Textile Association shows a 98 per cent increase bureaucracy since the implementation of Brexit deal on January 1, 2021. As per Draper Online, 92 per cent of UK fashion leaders experienced increased freight costs while 83 per cent encountered increased costs and bureaucracy around customs clearance.

The UK Fashion and Textile Association’s (UKFT) Brexit Survey questioned 138 leading UK fashion brands, textile manufacturers, wholesalers, fashion agencies, garment manufacturers and retailers in May 2021. Around 74 per cent fashion businesses reported experiencing generally increased costs associated with Brexit. The vast majority of those were looking to pass on these costs to consumers in the next six to 12 months.

Around 53 per cent reported an increase in order cancellation due to Brexit, while 44 per cent encountered rejected or returned goods due to higher duty costs, customs clearance and VAT. Forty-four cent reported been affected by unexpected duties when re-exporting goods.

About 7.5 per cent respondents said they planned to relocate production from the EU to the UK in the next 12 months, while 6 per cent said they had already relocated production from the EU to the UK as a result of Brexit.