A historic lace firm that made lace for Kate Middleton's wedding dress says its business is being crippled by new Brexit costs. Cluny Lace was founded 263 years ago in Ilkeston and has supplied lace to designer high-end clients like Gucci, Dolce and Gabbana and Burbery.
However, now the historic firm is being ‘killed off’ by the rising Brexit costs. Charles Mason, whose family founded Cluny Lace in 1760, has expressed frustration towards the UK post-Brexit rules which have ruined trade for the business.
Speaking to Derbyshire Live, Mr Mason shared that he was angry as HMRC imposed a backdated tax on the company's lace in excess of £10,000 which has meant the company has had to make six members of staff redundant.
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Having now lost more than 100 years of experience, Cluny Lace will have to scale back its operations to try to get through these extra costs.
Mr Mason said: "We have spent more than 200 years building our business, fought for 30 years against the global textile trend of moving to the Far East and have now been killed off by our own side."
The firm was first founded in 1760 by the Mason family. The company has gone through many recessions and wars but Brexit could prove the lace maker's final undoing.
The lace firm hit headlines when Kate Middleton married Prince William in 2011. Cluny Lace made the lace that was used on Kate Middleton’s bridal gown.
The lace was used on her underskirt and on the train as well as on the underskirts, sleeves and necks of the bridesmaid dresses.
In a letter to the Financial Times, Mr Mason explained that, after a recent audit, HM Revenue & Customs decided to levy an 8 percent duty on the return of all the lace that is sent to France for dyeing before being returned to the Ilkeston factory for further finishing.
This has been backdated to when Brexit started two years ago and so the company is being hit with a bill for more than £10,000. Mr Mason continued: "We all lose. It doesn't come as a surprise [the HMRC tax] because before Brexit started, there was a possibility this might happen."
"But we thought these systems we were operating, with the Inward Processing Relief (IPR) so we thought that we wouldn't be applied. But then we had a customs audit in January, and they basically said we'll have to pay that, it's on everything we do and also duty and it's backdated to January 2021. So I'm not happy. It's ruined our business."
According to Mr Mason, the business has been charged £10485.07 for the period from January 1, 2021, to December 31, 2022, when an eight per cent duty has been placed on all the lace sent back from France after dyeing.
The lace maker will now have to pay an immediate fee on each shipment, which could be anything in excess of £100, despite sometimes not selling the lace for a couple of years after it is produced. Mr Mason added: "The company will be a lot smaller.
"We're still going to try and carry on as best as we can but at a reduced level, unfortunately. I'm trying to work out how to do that. There are companies who get their fabrics dyed in France - not lace - and they're not paying any commodity at all. It doesn't make any sense."
An HMRC spokesperson said: “Import duty is applied to goods imported into the UK. A number of procedures and reliefs are available which may reduce the amount payable, particularly where goods are reimported after processing.”
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