Countdown to Brexit! Sellers must understand these points

Countdown to Brexit! Sellers must understand these points

The Brexit transition period is about to end. From January 1, 2020, a customs border will be added between the UK and the EU. Sellers must prepare various materials in advance to avoid products being detained at the UK/EU customs when they are delivered, which will have a certain impact on the order volume.







What changes will there be after Brexit?



1

UK sites withdraw from Pan-EU


From January 1, 2021, Amazon’s unified delivery (EFN) service will no longer be able to deliver across the UK/EU border, and sellers will need to ship independently in the UK and other European countries.


Sellers who have opened the Pan-European plan cannot share inventory between the UK and the EU. Sellers need to replenish inventory at the UK/EU FBA warehouse separately. When goods enter the EU market from the UK, British companies need to declare imports and pay the VAT of the importing country. Goods from EU countries also need to go through customs declaration and customs clearance procedures when entering the UK.


2

EORI will distinguish between the EU and the UK

Sellers will need to register two EORI numbers: If you currently have an EORI number starting with GB for the UK, then before the end of the UK transition period, sellers will also need to be prepared to apply for an EORI number for any other EU country;


3

UK trademarks will no longer be recognised by the EU

UK and EU trademarks cannot be protected in each other's regions and countries. Sellers need to register at the same time, and the UK trademark and EU trademark (trademark name/design, etc.) applied for at the same time must be consistent.


For EU trademarks successfully registered before January 1, 2021, the UK IPO will directly clone and convert existing EU trademarks and design patents into corresponding UK rights.


4


  Abolition of the £15 tax-free "low value remote consignment" policy

From 1 January 2021, the UK will remove the current VAT exemption for low-value goods imported into the UK with a value of no more than £15.




What should sellers do to prepare?


Preparation 1: Reasonable allocation of cargo storage plan


Amazon's unified delivery (EFN) and pan-European plans will be affected, and sellers will need to ship goods independently in the UK and other European countries, so sellers' inventory pressure will increase. Sellers need to arrange storage conditions reasonably in advance according to order conditions , and pay attention to local inventory conditions in the UK in a timely manner to avoid out-of-stock or delivery delays.


Preparation 2: Prepare the VAT number (VAT) and EORI number



After Brexit, cross-border e-commerce sellers will need to pay taxes locally on goods sold from the UK to EU countries. Cross-border e-commerce sellers exporting goods from the UK to EU countries must have the UK EORI number, UK VAT tax, the EU EORI number and the country's VAT tax number;

 

Preparation 3: Registering UK and EU trademarks


The transition period is about to end, and it may be too late to register a UK/EU trademark now, but companies, organizations and individuals who are still applying for EU trademarks at the end of the transition period can apply for the same protection in the UK within 9 months after the end of the transition period .




Amazon Logistics Europe Integration Service Upgrade


What’s new about the new Amazon Logistics Europe integration service?


1. More flexible storage options


*Note: You need to upload the VAT number of the selected inventory storage country on the seller platform.


2. VAT registration is more flexible



3. Different final-mile logistics delivery




*Note: On January 1, 2021, the new customs border between the UK and the EU was officially established. In order to better cope with this change, from December 28, 2020, Pan-EU and EFN will stop transporting across the customs border between the UK and the EU.



(Source: Seller Growth Academy)


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