Have you heard flower export tariffs are suspended? We Explain All

You may have heard in the flower world that there has been an end to export tariffs on flowers with a suspension of 8% duty that was previously added, however, in many respects this is only half the story. Some reports have indicated that all prices will fall as a result, which isn’t necessarily the case. 

We know all about this – we have our finger on the pulse – and are pleased to share the info clearly and concisely, with the most important information – What it means for you! Let’s dive in…

 As 11th April 2024 the UK Government have reduced import duties of fresh flower of non-EU Origin, which are traded through the EU.

Previously flower that came from countries such as Colombia, Kenya and Ecuador that were sold through the flower auctions in Holland had an 8% tariff added. This has now gone.

This is certainly great news, however the fact is, we have have never had this extra tariff added to most of our imported flowers to begin with. That’s because the vast majority of our flowers that come from non EU countries are sent directly to us – they aren’t rerouted through Holland, and so they don’t get this 8% added to the cost.

Whilst many other suppliers and wholesalers would only buy their flowers through Holland for years we at Westflor have been taking shipments directly to avoid this 8% tariff (we never want you to pay more than you should!).

This has been the case with our Tessa roses, our Colombian carnations, just to name two.

Andy, our import manager and manages all these things to make sure you get the best quality, freshest flowers at the best price.

Having said that there are a certain amount of flowers that we bring in through Holland that are of non-EU Origin, which which have the previous extra cost removed. We just wanted to manage your expectations that many core items may not suddenly drop in price.

When the UK exited the EU, it introduced tariffs on imported goods, including flowers. However, in practice most countries were exempt from these tariffs due to existing trade deals.

But that wasn’t the case for flowers from non-EU countries, that were bought through the EU. When this happened the flowers were excluded from these deals and subject to an 8% tariffs due to specific ‘rules of origin’ that was agreed between the EU and the UK at the time the UK’s exit from the EU (Brexit).

As of the April 11, 2024, the UK government announced a temporary suspension of import duties on cut flowers under code 0603. This suspension, that was effective immediately, allows unlimited quantities of flowers to be imported into the UK at a 0% tariff rate, regardless of whether they transit through a third country via the Netherlands. The suspension will remain in place until June 30, 2026.

In short no! The MFN (Most Favoured Nations) tariff system not only added duty for imports of 8% for fresh flowers as we’ve already covered,  but 10% on  flowers and branches, dried and decorative items, which do not fall under ‘fresh’ e.g. dried, bleached, dyed, impregnated, or otherwise prepared. 

Currently this suspension runs until 30th June 2026 however, many organisations are committed to making the temporary suspension a permanent adjustment. Of course we’ll keep you updated.

As you know The Netherlands is at the centre of the global flower trade, accounting for around 52% of the world’s flower exports. However, whilst it largely dominates our industry many of the flowers it exports aren’t grown there. It certainly grows its fair share, but as well as exporting large quantities of flower grown in Dutch soil, much of what it sends out to the UK and around the world comes from imports from other countries like:

• Colombia – 2nd largest exporter of fresh flowers
• Ecuador – 3rd largest exporter of fresh flowers
• Kenya – 4th largest exporter of fresh flowers
• Ethiopia – 5th largest exporter of fresh flowers, and so on.

Flower production in many of these countries, especially the rural areas, has revolutionised things, both in terms of the counties economy and the standards of living. It has created work and communities around flower farms, complete with schools, medical facilities, etc. The changes in the tariff rate is considered to have a knock on effect that will benefit these countries.

An article on the government website stated ” the UK has temporarily removed export tariffs for cut flowers, with the aim of making trade with the UK easier and cheaper for growers in East Africa and beyond. …The suspension of 8% duty for cut flowers applies across the world but will be a big win for major flower growing regions in Kenya, Ethiopia, Rwanda, Tanzania, and Uganda.”

We’re pleased to to share the news about the suspension of the 8% import duty on fresh flowers from non-EU countries. This is great news for our industry. 

Whilst we at Westflor, have sourced many of our flowers directly to ensure we were able to avoid this tariff previously. Now, we’re excited to pass the benefits of even more competitive pricing on some flowers we bring in via Holland that previously had these tariffs. 

It’s also great to know that beyond the financial benefits to you, this policy change supports the economic development of flower-growing regions in South America, East Africa and beyond. It’s a win-win situation for everyone involved.

We’ll keep you informed of any updates. In the meantime, feel free to reach out if you have any questions. We’re always here to help you in this ever-evolving world of floristry.

Image credit: Tessa Corp, DianthusWeek, and our own.