Global Britain

[AtW]

“ Customers in Europe buying products ranging from furniture to pet food from UK companies are receiving unexpected bills for VAT and customs duty or finding household names have stopped shipping to the continent, as post-Brexit trading rules bite.

“We bought a €47 [£42] shelf from Next for our bathroom,” said Thom Basely, who lives in Marseille. “On the morning it was supposed to be delivered we received an ‘import duty/tax’ demand for over €30, like a ransom note. It came as a complete surprise.”

A Frankfurt resident who ordered cycle clothing from a UK company was sent a tax and duty demand for €102, while a woman in the Netherlands who bought trousers in December “with no issues” faced a €40 bill for two more pairs ordered in January.”

Customers in Europe hit by post-Brexit charges when buying from UK | Brexit | The Guardian

[AtW]

“ Unfortunately, tariffs are not the same as customs duties,” Hickson said. Customs duty is a charge that has to be paid on many goods imported into the EU from countries outside the European customs union – including Britain.”

[rambaugh]

Rather than having cross border ecommerce transactions from websites based in the UK brands in the UK can sell to distribution channels operating in the EU which will allow their products to be sold via local retail websites in EU currency.

This will be the model moving forward...it will increase costs to end consumers due to middlemen wanting a slice however it will provide for a better cusotmer experience (for goods over a certain amount that incur customs tax) because of transparent pricing.

[AtW]

Rather than having cross border ecommerce transactions from websites based in the UK brands in the UK can sell to distribution channels operating in the EU which will allow their products to be sold via local retail websites in EU currency. .

That would still involve tariffs added to sell price thus making this sort e-commerce unviable.

It’s enough to have even rumour of those tariffs to have lots of people not even bothering consider buying from Britain now

[rambaugh]

That would still involve tariffs added to sell price thus making this sort e-commerce unviable.

It’s enough to have even rumour of those tariffs to have lots of people not even bothering consider buying from Britain now

This article is talking about a consumpton tax added when the goods are received by the consumer. Supply of goods from UK to EU and vice-versa when in the distrubution chain don't incur consumption taxes and as per the Brexit deal it states there are no tariffs applied in either direction when goods are exchanged. What tarrifs are you referring too ?

[BlasterBates]

Rather than having cross border ecommerce transactions from websites based in the UK brands in the UK can sell to distribution channels operating in the EU which will allow their products to be sold via local retail websites in EU currency.

This will be the model moving forward...it will increase costs to end consumers due to middlemen wanting a slice however it will provide for a better cusotmer experience (for goods over a certain amount that incur customs tax) because of transparent pricing.

That's pointless the distributor will simply buy the product from the manufacturer, why should they buy from a retailer with a 40% margin. The retailers will simply have their turnover to the EU cut.

[BlasterBates]

What we're seeing here is how the GDP gets hit because of Brexit. UK retailers effectively can't sell goods to the EU. Sure, the manufacturers can export to distributors in the EU, but this means the 40% retail margins go to EU retailers and the EU countries get the 20% VAT. That means a smaller retail sector and less tax.

[Old Greg]

What we're seeing here is how the GDP gets hit because of Brexit. UK retailers effectively can't sell goods to the EU. Sure, the manufacturers can export to distributors in the EU, but this means the 40% retail margins go to EU retailers and the EU countries get the 20% VAT. That means a smaller retail sector and less tax.

It’s a good job you can’t put a price on a sovereignty.

[AtW]

It’s. basically to prevent UK being “Singapore on Thames” - undermining honest EU companies with free ports, low taxes etc.

Same tulip will be with many valuable services

[rambaugh]

That's pointless the distributor will simply buy the product from the manufacturer, why should they buy from a retailer with a 40% margin. The retailers will simply have their turnover to the EU cut.

No one is suggesting the distributors buy from the retailer. That would be silly.

The point was that OEM's in the UK will supply distribution chains in the EU. The EU distribution company can be UK owned but operating branches in EU and be responsible for meeting EU's CE regulations.

This is a sensible model for business as it will mean UK OEM's are able to create products for a global market but then offload the stringent certifification process of their products to distribution chains operating in the EU. in other words this frees UK OEM's getting burdened with compliance and regulatory red tape.