What is FHDDS? FHDDS Review

Seller backend display

Many sellers have found that today, the backend delivery plan requires an IEN number. This number is a number that comes with the C88 file after VAT customs clearance.

What is an IEN number?

The IEN number is a string of numbers on the tax form C88 after you declare to the customs. This number is unique. For example: the UK IEN number is the customs declaration number of H2&E2&C88, which is generally composed of terminal code + 7-digit code + date, for example: 071-066808T-28/11/2018

FHDDS targets

An organization that provides warehousing services to overseas merchants in the UK.

Application Period

The deadline for registering as a warehouse service provider is June 30, 2018. Companies that start business between April 1 and June 30, 2018 will need to apply on or before September 30, 2018. There will be penalties for late registration.

From April 1, 2019, businesses that meet the FHDDS criteria will not be able to provide logistics services unless they have been approved by HMRC. If they do so, they face a £100,000 fine and a criminal conviction.

Note: If an eligible UK overseas warehouse fails to apply for and fulfill FHDDS, HMRC will impose penalties and conduct criminal investigations on it. If such a situation occurs, all the seller’s inventory is likely to be sealed and inspected.

obligation

UK warehousing service agencies that apply for and implement FHDDAS must assume the role of “inspector”.

First of all, they must ensure that their customers fulfill their duties and VAT responsibilities. If they find that sellers are in violation of the regulations, they are responsible for conducting patrol guidance and notifying the tax authorities of the situation.

Secondly, they have to cooperate with the UK tax authorities' investigation and provide them with all their customers' warehousing data.

Finally, they must also stop providing warehousing services to merchants.

Purpose

From the "E-commerce Platform Data Sharing Agreement" officially implemented on April 25 to the notification of the overseas warehousing plan to all overseas sellers, the intention of the tax bureau is very clear: from freight warehousing to sales, multi-channel and all-round grasp of overseas sellers' trade information. The purpose is to accurately calculate the value-added tax that merchants need to pay.

effect

As an approved warehouse service operator, Amazon is required to maintain certain records on behalf of non-EU sellers (with non-EU origin products) in relation to products stored in Amazon's UK fulfilment centres. This regulation only affects sellers who do not have a registered business in the UK or other EU countries.

Amazon Extract Information:

Name and contact details

·Verified UK VAT registration number

Inventory records, including the number and description of non-EU origin goods stored in our fulfilment centres

For each shipment to Amazon’s UK fulfilment centre, any Import Entry Numbers (IENs) for the products contained in that shipment

FAQ

1. As an approved warehouse service operator, what obligations does FHDD impose on Amazon?

If Amazon knows or has reasonable grounds to suspect that a seller has not fulfilled the UK VAT and customs obligations related to the import of goods, it is obliged to notify HMRC. If Amazon has such good reason to suspect that you have not fulfilled the relevant obligations and still have not fulfilled them after 60 days, Amazon is obliged to stop providing delivery services for your products. Failure to comply with these obligations may result in Amazon being fined £3,000 for each failure to fulfill its obligations and may result in Amazon's license being revoked.

2. I am a UK or EU seller. Will this registration affect me?

Amazon only needs to keep records of non-EU sellers. This means that the regulation only affects sellers who do not have a registered business in the UK or EU countries.

If you have established a business in the EU, you will not be affected by this registration.

3. I am a seller who only provides self-delivery. Will this registration affect me?

FHDDS applies specifically to UK-based warehousing service operators for non-EU origin goods stored on behalf of non-EU sellers. Therefore, if you are not using Fulfillment by Amazon, these changes will not affect you.

4. Will my products stored in non-Amazon warehouses in the UK be affected?

All UK delivery operations must be approved by HMRC to comply with the licensing requirements of FHDDS. After April 1, 2019, if you store your products at an unapproved warehouse service operator outside of Amazon Logistics, your products may be confiscated by HMRC. For products stored in non-Amazon warehouses in the UK, please contact the warehouse operator directly to confirm that they are registered under FHDSS.

5. What should I do if my products are delivered from the EU to the UK?

Amazon is required to keep a record of all import entry numbers for non-EU products imported into the UK from non-EU countries. If the products are imported into an EU country or purchased in an EU country, they are not covered by FHDDS. If you wish to notify us that this shipment is not covered by FHDDS, you should confirm this in the Shipment Queue page in Seller Central. For more information, see the "Where do I enter my Import Entry Number (IEN)?" question on this page.

References

• 1. Summary of questions about Amazon UK's "Facility Due Diligence Scheme" (FHDDS): Cross-border Talent Network [cited on 2019-04-01T16:00:00.000Z]