U.K.-based outdoor gear designer Terra Nova said it is moving its export business to The Netherlands to avoid crippling Brexit-related costs and trade friction. The new entity, Terra Nova Equipment Europe B.V., will be located in Amsterdam and deal with all European business as well as a majority of trade outside the U.K.
Terra Nova said European export costs rose 40 percent when new post-Brexit trade rules began on Jan. 1. “Brexit made us reassess how we trade with our international customer base,” said chairman Andy Utting. He also explained that many regulations and tax implications were overlooked, with little government help for exporters to find operational models that protected customer relationships. “The move will protect our EU customers from the regulatory and cost disruption caused by Brexit, as well as speed up deliveries within Europe.”
Terra Nova will also benefit from free trade agreements the EU has with other countries, Utting said, adding the Netherlands has “first-class transport facilities through Rotterdam and Schipol airport, exceptional digital infrastructure and a business-friendly regulatory environment.”
Rules of origin required for free trade in the UK-EU deal could exclude Terra Nova’s U.K.-made products because materials are developed and sourced worldwide. It uses its expertise in design and textile research to produce products that are 80 percent manufactured offshore.
Terra Nova has a new U.K. operation and manufacturing facility in Clay Cross, Derbyshire, and expects a boom in domestic camping this summer.
