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LONDON, Jan 8 (Reuters) - British retailer Marks & Spencer
warned on Friday its popular Percy Pig sweets could be
hit by tariffs if it re-exports the product to European Union
countries, including Ireland.
Chief Executive Steve Rowe said the pink sweets, along with
about a third of the products in M&S's food business, are
subject to very complex "rules of origin" regulations that form
part of Britain's trade deal with the EU struck on Christmas
Eve.
The rules relate to the composition of individual products
and how much of it has been altered in the United Kingdom.
Any product that is manufactured in Europe, imported into
the UK and then re-distributed to EU countries faces a tariff.
"The best example I can give you of that is Percy Pig," Rowe
told reporters, as M&S updated on Christmas trading.
"Percy Pig is actually manufactured in Germany. If it comes
to the UK and we then send it to Ireland, in theory it would
have some tax on it," he said.
M&S warned on Friday the tariffs issue would significantly
impact its businesses in Ireland, the Czech Republic and its
franchise business in France.
It said it is working to mitigate the problem.
(Reporting by James Davey; Editing by Kate Holton)
