LONDON (Reuters) – British retailer Marks & Spencer warned on Friday that its popular Percy Pig sweets could be hit by tariffs if it re-exports the product to European Union countries, including Ireland.
CEO Steve Rowe said pink sweets, along with about a third of M & S’s food products, are subject to very complex “rules of origin” regulations that are part of Britain’s trade agreement with the UK. ‘EU ended on Christmas Eve.
The rules cover the composition of individual products and how much of it has been changed in the UK.
Any product manufactured in Europe, imported into the UK and then redistributed to EU countries is subject to a fee.
“The best example I can give you is Percy Pig,” Rowe told reporters as M&S updated on the Christmas trade.
“Percy Pig is actually made in Germany. If it arrives in the UK and then we send it to Ireland, in theory there would be taxes, “he said.
M&S warned Friday that the tariff issue would have a significant impact on its operations in Ireland, the Czech Republic and its franchise operations in France.
He said he is working to mitigate the problem.
James Davey reporting; Editing by Kate Holton