Logistics after Brexit – Sending packages to the UE from the UK after Brexit
Logistics after Brexit
Even though Brexit was rescheduled a few times, it caused a lot of issues for entrepreneurs. Even now, a year and a half since the UK left the EU, it is unclear how to send packages to and from the UK. We have been preparing our customers for this for even more than a year. Yet, for a while, their sales dropped significantly.
But fortunately, we found some solutions to this issue. It took a few months, but we managed to increase our partners’ sales even above the starting point.
Common problems with logistics after Brexit
We realise, however, that there are still a lot of businesses that struggle with this topic. What’s worse, even logistic providers did not fully solve this issue. It comes as no surprise that many sellers just gave up sending their products to and from the UK.
There are, however, some solutions you can implement, so they will help you get back on track. Initially, it may seem scary, but once you fix it, you can fulfil all European orders. All the below steps must still be consulted with your accountants.
The list of logistics after Brexit is based on our experience. It may be different for your business, and you should always adjust the given solutions to your company.
Okay, let’s get started.
1. It’s all export now
The first thing you should change is your mindset. Even though the UK is still in the same place, you should not treat it as you did previously anymore. From the 1st January 2021, all parcels sent between the UK and the EU are treated as export packages.
This situation requires a few adjustments not only to your software and customs but also to your packages and provided information.
2. Customs clearance
Since the beginning of the previous year, all packages need to be checked by the customs office. It causes giant queues and significant delays. We have witnessed this and, believe me, it took a lot of time to fulfil orders.
This requirement means some additional paperwork. These days, you have to attach a commercial invoice, and this item needs to be subjected to other fees and duties. You should also pay attention to a detailed description of the sent item. The customs declaration needs to state clearly what is inside the box and what is the value of the given product.
On top of that, you need to provide an 8-digit HS code assigned to the appropriate tariff.
3. Customs duties and VAT
You should be prepared that your customers will have to pay some additional duties. They can apply, and the customs office requires the recipient’s contact information. In this way, your customer can be easily contacted and provide all the additional details.
Let’s dive into some more details about the difference between the two given costs. Customs duties are calculated based on a few factors. Price, the product origin and the type of good, just to name a few. In this case, once the products are fully produced in the EU, customs duties may not apply at all.
VAT tax, on the other hand, is calculated based on the item value. The amount of this tax is assigned to the national policy of the country of the recipient. Usually, in the EU, it is around 20%.
4. Selling on marketplaces
Even though it was a bit hard at first, various marketplaces provide help to their sellers. Thanks to some additional features, you can now inform your customers what the process of placing and receiving goods looks like. Also, they help you estimate fees that apply to the given product.
As you can see, this process is still not fully described, and, as mentioned above, even some logistics companies are still struggling with this procedure. We hope you found our short list helpful. In our case, focusing on these few issues was the key objective. And after all, we managed to send packages across the EU.