Asos lumped with £15 million tariffs after Brexit deal

Asos lumped with £15 million tariffs after Brexit deal

THE WHAT? Asos is facing tariff costs of up to £15 million following the UK’s official departure from the European Union at the start of this year, according to a report published by the Evening Standard.

THE DETAILS However, the sizeable sum is a reflection of Asos’ success in recent months as lockdown measures continue to favor online retailers.

Sales were up 23 percent to £1.3 billion in the four months to December 31, 2020 with growth driven by soaring demand for active- and leisure-wear.

THE WHY? Under the trade deal agreed in December, goods entering the UK are not subject to tariffs but duty is due on goods imported to the UK and then dispatched from there to the European Union. Asos has accordingly restructured, aiming to serve European customers from its Berlin facility however, some goods will continue to be shipped between the UK and Berlin hubs, incurring charges as they cross the border.

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