UK-EU Border – The Devil’s in the Detail
The practical implications of Brexit on everyday UK-EU trade is becoming clearer week by week. This week, Amazon announced changes affecting Amazon sellers, customs briefings and enquiries ramped up, and the impact on product availability and businesses started to become evident. The detail is very welcome, and helps businesses prepare further. For some, the impact will be more difficult to manage and will effect consumer choice, price and availability.
The UK government’s publication of its border operating model provided traders and logistics operators with more detailed information on the requirements for UK exports and imports. While much of the overall approach was predictable, the details of the arrangements make clear the challenges that traders will have to adapt to, and the costs likely to be incurred.
This week, retail giant Amazon announced the end of Fulfilment by Amazon (FBA) for UK sellers delivering to customers in the single market (and vice-versa). Sellers will now have to divide their inventory between UK and EU-Based Fulfilment Centres to avoid losing sales in either market.
This will raise the cost of reaching customers through increased storage and transaction costs of shipping their goods to warehouses in both markets. With Amazon putting in transitional measures before 1st January 2021, sellers Christmas trade may be affected too.
As so often, it’s the detail that counts. The UK’s plan to introduce postponed VAT accounting will be a boon to the cashflow of UK importers. But some businesses are beginning to see additional unwelcome challenges. For example, fresh fruit and vegetables delivered by air from Africa to the UK and its Benelux neighbours are distributed across the region. Since these goods movements will now need phytosanitary checks at the entry point, the opening hours of phyto offices at ports and airports now become a critical factor in avoiding lengthy delays.
With the time for preparation now short, the UK government is stepping up its communications to businesses with webinars for Belgian and Irish firms this week and more to come.
With its network of expert members and the backup of its UK chambers, Britcham is there to help you. If you have questions, contact us at BusinessContinuity@britishchamber.eu
Glenn Vaughan - Senior Adviser