EU tariffs put brakes on Gloucester bicycle firm
By Rob Freeman | 27th January 2021
Tariffs on sales to the EU could lose a Gloucester bicycle company up to 30 per cent of its business this year, according to its co-founder.
And Mike Mellor believes Quella Bicycles is just one of many businesses feeling the strain of new duty introduced on exports after Brexit.
Single-speed bike brand Quella, which was formed in 2012 and moved to Hardwicke in 2017, had forecast around 30 per cent of its sales heading to the EU this year.
But with specialist frames and components built in China and Taiwan, it faces 14 per cent tariffs on each sale for goods not produced in the country of origin - with some duty up to 45 per cent.
Mr Mellor said: "We just cannot sell to wholesalers at our current rate, it is just not sustainable. We will lose up to 30 per cent of our business.
"We pay duty when the goods land in the UK. We are a niche company, these parts are not available in the UK or they are not geared up for mass production."
He continued: "Our tariff-free Brexit is blatantly not a tariff-free Brexit.
"I sincerely hope the Government listens. The only way is high level negotiations and it needs to happen quickly."
Earlier this month Daniel O'Neill, founder of Gloucester kitchenware firm ProCook, told Punchline-Gloucester.com the situation was "very, very complicated".
ProCook ships to France, Germany and through Amazon and he said the new year has brought more confusion since the end of the transition period.
He said: "There are thousands of parcels stuck at customs because the paperwork is not complete and it's a bit of a mess.
"It's only tariff-free if it originates in that country and in a global economy, things don't originate in that country.
"We've now got to pay tariffs on all exports to Europe."
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