Brexit: Customs implications and consequences on your logistics
Since June 23, 2016, UK took the decision to leave the European Union. On long term, only the future will show us the consequences of this decision, but on short term, there will be inevitably damages to your current flow.
An unstable and uncertain environment for e-commerce players
From a logistical point of view, the conclusion is clear: by leaving the European Union, the United Kingdom will be out of the EU customs territory, creating an unstable and uncertain environment. That decision will cancel the intra-Community traffic between the EU and the UK. It will now introduce new customs procedures with consequences for customs duties and VAT. On very short terms, this can damage the activities of e-commerce players based in the UK. The decision to leave the EU and the consequences are coming just weeks after the authorities of UK have widely announced there will be more customs controls, particularly pointing to the chinese imports.
Consequences on the application of VAT
By voting the Brexit, the UK also comes out of the VAT territory of the European Union. Will the authorities review their legislation on VAT? An undeniable fact is that the EU decisions and the European regulations will not be applied in the United Kingdom anymore. It will be the same for judgments of the Court of Justice of the European Union (CJEU), which are a second source of law.
What about the consequences for e-commerce players and the special VAT agreements for the «e-commerce»?
For imports from UK to EU, the customs will now apply customs duties and VAT. Although there are some exemptions for low values, duties and VAT may be required for higher value goods.
A tailor-made solution for e-commerce players
In this uncertain context and as an expert in the logistics sector between China and Europe, ECDC Logistics provides alternative solutions to enable players in e-commerce to organize their distribution with serenity and competitiveness.
For more information about our services, please contact our team at info@ecdc-logistics.com

Leave a Reply

Your email address will not be published.