General Discussion: So, from tomorrow ordering from Europe costs more ...


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Rirawin
Rirawin avatar

9546 posts since 17/7/05

posted 15 Jan 2021 14:31, edited 15 Jan 2021 14:31
Had a coffee table shipped from the EU via FedEx arriving next Friday. Purchased 2nd January, so going to get hit by customs and duties. However, am I right in thinking that when I purchased the item from the retailer, the retailer should have deducted their local VAT from the purchase price?
wembly
wembly avatar

572 posts since 15/1/13

15 Jan 2021 14:40
yes they should! but I guess their system was not up to date with the new laws.

text them and ask them to refund you the local tax
Crackajack
Crackajack avatar

7975 posts since 21/4/05

15 Jan 2021 16:28
Are orders placed before Jan 1st definitely OK then? I'm waiting on a few items of furniture so could do without extra costs. Delays are to be expected I guess.
seenmy
seenmy avatar

6656 posts since 17/6/06

15 Jan 2021 16:38
if not shipped I would contact the seller and make sure the vat has been deducted (if its a vat item) from everything ive been told we should not be paying additional duty when receiving goods from EU (this is what dhl+a freight forwarder have told me) i think there is just mass confusion at customs and they are just slapping charges as if it was outside eu

I'm still waiting for aimeleondore to sort my order thats tied up with vat/duty fees been 10 days now…
Crackajack
Crackajack avatar

7975 posts since 21/4/05

15 Jan 2021 17:00
Thanks Seenmy. I should probably check in with them, the items are from UK-based retailers and just produced in the EU so should be less risk.
Rirawin
Rirawin avatar

9546 posts since 17/7/05

posted 21 Jan 2021 10:22, edited 21 Jan 2021 10:22
Anyone in the UK receiving a gift from the EU worth more than £39 may now face a bill for import VAT - with many items charged at 20%.

For goods costing more than £135, customs duties may also apply, which can range from 0% to 25% of the product you're buying if they have not been paid by the sender already.

https://www.bbc.co.uk/news/business-55734277

I have two items that are currently in transit from Italy. One via FedEx the other via DHL, I've been told by both retailers that I won't be subject to any additional duties or VAT. I believe with DHL the sender is using DDP service. No idea about the one coming from FedEx but after requesting a refund of local VAT they claim they've done the necessary paperwork, which means I shouldn't have to pay anything upon receipt.
staygold
staygold avatar

5055 posts since 21/11/05

21 Jan 2021 10:48
Sorry this might have been answered already but I want to buy someone from a Danish website, they have removed their local VAT and shipping is with DHL. Total price is around £100. Will I get hit with U.K. VAT on top and will this be the only charge or likely additional? Thanks
sydneyking
sydneyking avatar

5056 posts since 26/9/09

21 Jan 2021 10:56
Who’ve you bought?
Jesus
Jesus avatar

6071 posts since 7/10/08

21 Jan 2021 12:48
Jesus wrote: I order some bike parts from Deporvillage, based in Spain on 3/1/21

shippings via GLS then Parcelforce in the UK, handed to GLS in Spain on 4/1/21 and then nothing until today, where it says

The parcel is stored in the parcel centre.

In Spain

had an update on this on 15/1/21

The parcel is stored in the parcel centre. Roll Eyes



Scottishmark
Scottishmark avatar

780 posts since 25/1/11

21 Jan 2021 13:02
Haha I’m getting the exact same updates on an order I’ve placed.
Davinho
Davinho avatar

2387 posts since 2/12/08

21 Jan 2021 13:05
Same
Jesus
Jesus avatar

6071 posts since 7/10/08

21 Jan 2021 14:05
had a few ali express parcels through, nothing extra to pay there, but there is added tax when you checkout now

Jesus
Jesus avatar

6071 posts since 7/10/08

21 Jan 2021 14:08
outgoing is bad as well, ive had a Parcelforce to Aus shipment, that cost me 62 quid to ship and the last update i have is on the 12th, "prepared to export" and this was a 5 day service parcel

jobs fucked
morgan
morgan avatar

1136 posts since 22/2/11

21 Jan 2021 15:50
I wouldn’t trust anything at any price now.

https://www.theguardian.com/politics/2021/jan/21/britons-buying-from-eu-websites-face-more-than-100-import-duties?CMP=Share_iOSApp_Other
Rirawin
Rirawin avatar

9546 posts since 17/7/05

21 Jan 2021 17:18
Received a service update from Parcel2Go. UPS have stopped accepting international parcel bookings from Parcel2go and other brokers. The gift that keeps on giving.
swiftus
swiftus avatar

1515 posts since 1/7/09

21 Jan 2021 17:29
morgan wrote: Fuck Brexit and fuck any cunt that voted for it unless they hand a very good reason.

I back this. Anyone who voted for this bullshit has no idea how business works. We've just completely fucked ourselves.
swiftus
swiftus avatar

1515 posts since 1/7/09

posted 21 Jan 2021 17:30, edited 21 Jan 2021 17:30
Paywall, but good reading if you have access

https://www.thetimes.co.uk/article/fashion-retailers-brexit-plans-come-apart-at-the-seams-0kwn8vf3w
gawkrodger
gawkrodger avatar

7641 posts since 4/11/08

21 Jan 2021 17:56
able to c+p the text?
sydneyking
sydneyking avatar

5056 posts since 26/9/09

21 Jan 2021 18:01
IN NUMBERS
12% Average tariff for exporting goods made outside the UK or EU to Europe
£15m Estimated extra costs faced by fast-fashion retailer Asos as a result of the changes
£1.6bn JD Sports’ European sales, most of which are fulfilled from its site in Rochdale
Jade Holland Cooper breathed a sigh of relief on Christmas Eve. The UK’s 11th-hour free-trade deal with the EU appeared to have cleared the way for her fast-growing retail business to prosper.

Over the past fortnight, though, the fashion designer’s optimism has morphed into despair.

Alarm bells started ringing when a Belgian customer called her company, Holland Cooper, to complain that they had been charged £400 of duty on an £800 order because the correct paperwork was not in place. That was on top of the 12% tariff that Holland Cooper itself now pays on many cross-channel deliveries.

“Boris Johnson put us all under the illusion that there was going to be seamless trade, but it doesn’t really feel like there is a deal here at all. It’s a minefield,” said the designer, 34, who is married to Superdry chief executive Julian Dunkerton.

As the reality of the UK’s new trading relationship with the EU dawns on retailers, those with international businesses are scrambling to re-engineer supply chains to minimise tariffs and dodge red tape. The likes of Primark and Asos are permanently rerouting some deliveries to their European warehouses, while sportswear retailer JD Sports is hunting for a new European warehouse that will suck business away from its facility in Rochdale.

Under rules of origin, tariffs are levied on goods not deemed to have originated within the UK or the EU, reducing the competitiveness of British companies that import goods from outside the bloc to sell on the Continent. The additional costs are forcing retailers to decide whether to take a hit to their already thin profits, try to squeeze their suppliers — or simply increase prices to offset the damage.

After costly misadventures overseas, companies such as Tesco, Marks & Spencer and New Look have all scaled back abroad. Others are likely to follow. The complexity of the rules and extra expenses have already spurred John Lewis, Waterstones, Debenhams and Fortnum & Mason to stop accepting international orders.

“A lot of what we export from the UK isn’t made here but our textile companies are great at designing, branding and marketing. Now, tariffs are making them uncompetitive. The industry has been thrown under the bus by the Brexit deal,” one high street boss said.

When re-exporting to the EU, fashion retailers now have to pay an average tariff of 12% on the eventual selling price of the goods, on top of any duty they paid to bring them into the UK. Tariffs are also levied when a product deemed to have originated outside the EU is imported into the UK via the bloc.

That is particularly hard for the fast-fashion industry, which sells huge quantities of cheap clothes on razor-thin margins. Keen to satisfy the Instagram generation’s desire for immediate access to trends, Boohoo, Zara and others make or finish making goods on the Continent to shorten lead times.

Last year Asos was handling orders for customers in Ireland from its warehouse in Barnsley. But as part of its Brexit preparations that work has now been shifted to its facility in Berlin. The fast-fashion giant, which sells globally, has requested that suppliers in Asia split their consignments between its warehouses in the UK, Germany and America.

Even so Asos has earmarked £15m of additional costs this year, equivalent to more than 10% of last year’s profits. It is in talks with suppliers about mitigating the costs but has pledged not to pass them on to customers.

Marks & Spencer is now planning to receive deliveries for its European business into its warehouse in Turkey, rather than the UK.

As part of its Brexit preparations, Primark also asked suppliers to ship to European warehouses rather than its UK facilities, but its UK and European supply chains were largely discrete.

That is not the case for JD Sports, which imports branded products from Asia and services almost its entire £1.6bn of European sales from Rochdale. With many of those goods now subject to tariffs when they come into the UK, and again when they cross into the EU, executive chairman Peter Cowgill has been forced to look for a new distribution facility in Germany or the Netherlands.

After more than two years of intense preparation Next, led by Brexiteer Lord (Simon) Wolfson, said it had experienced minimal disruption and didn’t expect to incur tariffs. That is largely because the retailer uses bonded warehouses in the UK and on the Continent, so duties are paid only when goods are sent out to stores rather than when they are transported between the bonded warehouses. Outdoor retailer Mountain Warehouse operates a similar system while fashion chain Superdry is also in the process of bonding its warehouses.

Smaller businesses lack the resources to resolve the issue in that way, however. “We used to import Chinese fabric into the UK and have it manufactured in Europe but now we have to completely rethink our supply chain,” one high street clothing supplier said.

The UK has protected tariff-free trade in other instances, though. Significantly, the EU’s “generalised scheme of preferences” — which stipulates that goods imported from dozens of developing countries are free of tariffs — has been rolled over. The UK has also struck a tariff-free trade deal with Turkey, an important textiles market for fast fashion.

Retailers are upset that by publishing the details of the trade deal just a week before it was implemented, the government left them with little time to prepare. Others argue that larger businesses in particular should have made contingency plans.

“Rules of origin shouldn’t be a surprise because the government clearly set out what businesses needed to do if they were exporting goods or services months in advance,” said Lord (Mark) Price, the former minister of state for international trade.

Whichever side of the argument you come down on, it is not proving to be a very happy new year for Britain’s luckless retailers.


gawkrodger
gawkrodger avatar

7641 posts since 4/11/08

21 Jan 2021 18:15
ta