Asked by: Ben Bradshaw (Labour - Exeter)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential impact of personal allowances for people bringing excise and non-excise goods into the UK for personal use on the economy.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
Following a consultation in Spring 2020, on 1 January 2021, the Government extended duty-free sales to EU-bound passengers at UK ports and airports for the first time in over 20 years. This is a significant boost to all ports, airports and international rail terminals in England, Scotland and Wales, including smaller regional airports and rail hubs, which were not able to offer duty-free to the EU before.
The Government also introduced personal allowances for passengers entering Great Britain from the EU. During the consultation stakeholders expressed concerns about this change, particularly those that deal with large volumes of EU passengers travelling to Great Britain in a vehicle by ferry or train, given many passengers were used to bringing back unlimited amounts of goods from the EU. The Government therefore used its freedoms from EU rules to significantly increase alcohol allowances for all passengers. This enables visitors to bring in, for example, three crates of beer, two cases of wine and one case of sparkling wine, without having to pay the relevant taxes, with Great Britain having one of the most generous allowances in the world.
Asked by: David Warburton (Independent - Somerton and Frome)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, when the Government plans to reach a decision on the new timeline for the introduction of import labels for EU wine that was due to come into force on 1 October 2022.
Answered by Mark Spencer - Minister of State (Department for Environment, Food and Rural Affairs)
I am pleased to say that a decision to extend the current easements for wine importer labelling has recently been made. The Food Information (Amendment of Transitional Provisions) (England) Regulations 2022, which will come into effect on 30 September 2022, will extend the current importer labelling arrangements for wine until 31 December 2023. This means that it will still be permissible for wine marketed in Great Britain to show an EU importer or bottler on a wine label, eliminating any financial re-labelling burden operators were previously facing. The introduction of these provisions has been warmly welcomed by the UK Wine trade.
Asked by: Ben Lake (Plaid Cymru - Ceredigion)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment he has made of the potential merits of exempting organic wine from certificate of organic importation requirements.
Answered by Victoria Prentis - Attorney General
We have no plans to exempt organic wine imports from the requirement for Certificates of Inspection that apply to all organic products imported into Great Britain (GB). These regulations exist to ensure that products sold as organic in GB meet the legal requirements and ensure consumer confidence in the integrity of the sector. Granting exemptions to these regulations for specific categories of product would be inappropriate and detrimental to consumer confidence.
Certification of organic products and organic operators (producers, processors, exporters and importers) is a long-established practice across the world. Organics is a method of production set in legislation. Certification of products and operators is an essential element for confirmation of the provenance and organic status of products and adherence of operators to organic requirements. Maintenance of consumer confidence that products marketed as organic are organic is vital.
Any business importing organic products into GB must be registered and certified by a UK control body. Organic imports from non-EU/EEA/Swiss third countries continue to require a GB Certificate of Inspection which must be approved before the organic products leave the third country. From 1 July 2022 organic imports from the EU, EEA and Switzerland will also require a GB Certificate of Inspection.
The Government is working to streamline bureaucratic processes inherited from the EU regulatory system to allow for a more flexible and responsive way to handle our regulatory obligations while reducing costs for producers and the burden on the public purse. For example, Defra has laid new legislation that streamlines updating the lists of recognised third countries and third country control bodies for organics goods being imported into GB. We have further streamlined the import process by accepting electronic (PDF) Certificates of Inspection.
Asked by: Paul Girvan (Democratic Unionist Party - South Antrim)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what comparative assessment he has made of the effect on revenue generating opportunities of the increase to duty free personal allowances, which came into effect in January 2021, on (a) UK airports and (b) airports in other jurisdictions.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
Following a consultation in Spring 2020, the Government announced on 11 September 2020 that duty-free sales at UK ports and airports would be extended to EU-bound passengers for the first time in over 20 years from 1 January 2021. This is a significant boost to all ports, airports and international rail terminals in England, Scotland and Wales, including smaller regional airports and rail hubs, which have not been able to offer duty-free to the EU before.
The Government also announced that personal allowances would be introduced for passengers entering Great Britain from the EU. During the consultation stakeholders expressed concerns about this change, particularly those that deal with large volumes of EU passengers travelling to Great Britain in a vehicle by ferry or train, given many passengers were used to bringing back unlimited amounts of goods from the EU. The Government therefore used its freedoms from EU rules to significantly increase alcohol allowances for all passengers. This will now enable visitors to bring in, for example, three crates of beer, two cases of wine and one case of sparkling wine, without having to pay the relevant taxes, with Great Britain having one of the most generous allowances in the world.
The possible introduction of duty free on arrival raises a number of complex issues. For example, duty-free on arrival could undermine the UK high street and run counter to public health objectives. The Government would also need to consider the cost and any revenue and legal risks of introducing such a scheme. Any new tax relief will impose additional pressure on the public finances, to which excise duty makes a significant contribution. Duty on alcohol and tobacco raises over £22 billion and plays a key role in funding vital public services like the NHS and addressing harms caused by these products. Any loss in tax revenue would have to be balanced by a reduction in public spending, increased borrowing or increased taxation elsewhere. HM Treasury officials have held meetings with a number of stakeholders on this issue and continue to keep this under review.
Asked by: Paul Girvan (Democratic Unionist Party - South Antrim)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of (a) the proportion of UK regional airport revenue derived from non-aeronautical activity and (b) the potential effect of introducing duty-free shopping to UK airports on non-aeronautical revenues.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
Following a consultation in Spring 2020, the Government announced on 11 September 2020 that duty-free sales at UK ports and airports would be extended to EU-bound passengers for the first time in over 20 years from 1 January 2021. This is a significant boost to all ports, airports and international rail terminals in England, Scotland and Wales, including smaller regional airports and rail hubs, which have not been able to offer duty-free to the EU before.
The Government also announced that personal allowances would be introduced for passengers entering Great Britain from the EU. During the consultation stakeholders expressed concerns about this change, particularly those that deal with large volumes of EU passengers travelling to Great Britain in a vehicle by ferry or train, given many passengers were used to bringing back unlimited amounts of goods from the EU. The Government therefore used its freedoms from EU rules to significantly increase alcohol allowances for all passengers. This will now enable visitors to bring in, for example, three crates of beer, two cases of wine and one case of sparkling wine, without having to pay the relevant taxes, with Great Britain having one of the most generous allowances in the world.
The possible introduction of duty free on arrival raises a number of complex issues. For example, duty-free on arrival could undermine the UK high street and run counter to public health objectives. The Government would also need to consider the cost and any revenue and legal risks of introducing such a scheme. Any new tax relief will impose additional pressure on the public finances, to which excise duty makes a significant contribution. Duty on alcohol and tobacco raises over £22 billion and plays a key role in funding vital public services like the NHS and addressing harms caused by these products. Any loss in tax revenue would have to be balanced by a reduction in public spending, increased borrowing or increased taxation elsewhere. HM Treasury officials have held meetings with a number of stakeholders on this issue and continue to keep this under review.
Asked by: Paul Girvan (Democratic Unionist Party - South Antrim)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what economic advice he has received from (a) his officials and (b) independent sources on the potential merits of introducing duty-free shopping at UK ports and airports.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
Following a consultation in Spring 2020, the Government announced on 11 September 2020 that duty-free sales at UK ports and airports would be extended to EU-bound passengers for the first time in over 20 years from 1 January 2021. This is a significant boost to all ports, airports and international rail terminals in England, Scotland and Wales, including smaller regional airports and rail hubs, which have not been able to offer duty-free to the EU before.
The Government also announced that personal allowances would be introduced for passengers entering Great Britain from the EU. During the consultation stakeholders expressed concerns about this change, particularly those that deal with large volumes of EU passengers travelling to Great Britain in a vehicle by ferry or train, given many passengers were used to bringing back unlimited amounts of goods from the EU. The Government therefore used its freedoms from EU rules to significantly increase alcohol allowances for all passengers. This will now enable visitors to bring in, for example, three crates of beer, two cases of wine and one case of sparkling wine, without having to pay the relevant taxes, with Great Britain having one of the most generous allowances in the world.
The possible introduction of duty free on arrival raises a number of complex issues. For example, duty-free on arrival could undermine the UK high street and run counter to public health objectives. The Government would also need to consider the cost and any revenue and legal risks of introducing such a scheme. Any new tax relief will impose additional pressure on the public finances, to which excise duty makes a significant contribution. Duty on alcohol and tobacco raises over £22 billion and plays a key role in funding vital public services like the NHS and addressing harms caused by these products. Any loss in tax revenue would have to be balanced by a reduction in public spending, increased borrowing or increased taxation elsewhere. HM Treasury officials have held meetings with a number of stakeholders on this issue and continue to keep this under review.
Asked by: Laurence Robertson (Conservative - Tewkesbury)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, if he will take steps to ensure that all wines sent from Great Britain to Northern Ireland are (a) treated as not at risk, (b) exempt from VI-1 certificates, (c) exempt from EU and Northern Ireland labelling requirements and (d) exempt from import declarations; and if he will make a statement.
Answered by Victoria Prentis - Attorney General
The Government set out in our 21 July Command Paper The Northern Ireland Protocol – the way forward, proposals to find a new balance in the operation of the Protocol. To provide space for potential further discussions, and to give certainty and stability to businesses while any such discussions proceed, my Rt Hon Friend the Northern Ireland Secretary said in his most recent Statement that the Government had announced the previous day that we would continue to operate the Protocol on the current basis.
For the time being, this means that movements of wine from Great Britain to Northern Ireland must be accompanied by a simplified VI-1 certificate as outlined in the Trade and Cooperation Agreement and meet the labelling standards required by the EU. Wine that is moved within the UK is not subject to tariffs.
Asked by: Laurence Robertson (Conservative - Tewkesbury)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, if he will remove the requirement for imported wines to carry VI-1 certificates; and if he will make a statement.
Answered by Victoria Prentis - Attorney General
On 25 July, the Government announced its intention to remove the requirement of VI-1 certification for all wine imports entering Great Britain. The removal of this barrier will cut unnecessary red tape for importers from both the EU and Rest of the World. This is great news for businesses and consumers, who will now see a significant trade burden lifted, which will ultimately lead to a reduction in the cost of wine. Industry analysis suggests that on average VI-1 certificates add 10p to every bottle of imported wine; British wine consumers can expect to save up to £130 million each year.
We are taking the necessary steps to begin the implementation process. On 9 September, we launched the consultation process for the removal for businesses who are directly impacted by the change. Once we have completed the consultation, we will then look to ensure that the necessary legislation is put in place as soon as possible.
Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, what the Government's planned timetable is for bringing forward legislative proposals to remove the requirement for VI-1 certificates on wine imports.
Answered by Victoria Prentis - Attorney General
On 25 July, the Government announced its intention to remove the requirement of VI-1 certification for all wine imports entering Great Britain. The removal of this barrier will cut unnecessary red tape for importers from both the EU and Rest of the World. This is great news for businesses and consumers, who will now see a significant trade burden lifted, which will ultimately lead to a reduction in the cost of wine. Industry analysis suggests that on average VI-1 certificates add 10p to every bottle of imported wine; British wine consumers can expect to save up to £130 million each year.
We are taking the necessary steps to begin the implementation process. On 9 September, we launched the consultation process for the removal for businesses who are directly impacted by the change. Once we have completed the consultation, we will then look to ensure that the necessary legislation is put in place as soon as possible.
Asked by: Neil Coyle (Labour - Bermondsey and Old Southwark)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, with reference to his Department's press release entitled Red tape cut for wine imports to save British wine lovers £130m a year, published on 25 July, what his timescale is for implementing the removal the requirement for VI-1 certificates on all imports of wine into Great Britain.
Answered by Victoria Prentis - Attorney General
On 25 July, the Government announced its intention to remove the requirement of VI-1 certification for all wine imports entering Great Britain. The removal of this barrier will cut unnecessary red tape for importers from both the EU and Rest of the World. This is great news for businesses and consumers, who will now see a significant trade burden lifted, which will ultimately lead to a reduction in the cost of wine. Industry analysis suggests that on average VI-1 certificates add 10p to every bottle of imported wine; British wine consumers can expect to save up to £130 million each year.
We are taking the necessary steps to begin the implementation process. On 9 September, we launched the consultation process for the removal for businesses who are directly impacted by the change. Once we have completed the consultation, we will then look to ensure that the necessary legislation is put in place as soon as possible.