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Retail

Superdry to use bonded warehouses to avoid post Brexit EU tariffs

FILE PHOTO: Signage is seen at a Superdry store in London, Britain, March 1, 2019. REUTERS/Toby Melville

LONDON (Reuters) - British fashion group Superdry will use bonded warehouses to avoid having to pay tariffs on product re-exported to the European Union, its boss said on Tuesday.

UK retailers, including Marks & Spencer and ASOS, have complained of issues re-exporting goods to EU countries since the end of the Brexit transition period on Dec. 31, with tariffs imposed on items not made in the UK.

Superdry CEO Julian Dunkerton said the firm was well placed because most of the product it sold in Europe was shipped from suppliers directly to its warehouse in Belgium.

“We are one of the best prepared and the least affected,” he told Reuters.

He said that for product not sent direct to Europe the group will utilise bonded warehouses.

Tariffs don’t need to be paid when goods are moved between the bonded warehouses.

“We’ll be bonded by April, both in Europe and the UK,” Dunkerton said, pointing out that about 40% of its sales were made in Europe.

Reporting by James Davey, Editing by Paul Sandle

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