The latest developments of Brexit! Are European sellers panicking?

The latest developments of Brexit! Are European sellers panicking?


On July 13, the British government released a new Border Operating Model. From January 1, 2021, the transition period between the UK and the European Union (EU) will end, and the UK will operate a complete external border as a sovereign state. This means that the transportation of goods between the UK and the EU will be controlled.

Under the influence of the epidemic, in order to give businesses more time to make necessary arrangements, the British government decided to implement new border control measures in three stages before July 1, 2021.


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Phase 1:

From January 2021, traders importing standard goods, including clothing, electronics and more, will need to prepare basic customs requirements, such as keeping records of imported goods. Traders will also have to consider how to calculate and pay import VAT, but will have six months to complete customs declarations, and tariffs can be deferred until customs declarations. All goods require an export declaration and a UK export security declaration. In addition, there is no longer a requirement to prepare a security declaration six months in advance.

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Phase 2:

From April 2021, all products of animal origin (POAO), such as meat, honey, milk and eggs, as well as all regulated plants and plant products, will require prior notification, relevant health certificates and inspection.

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Phase 3:

From July 2021, traders must complete customs declarations and pay tariffs upon import, provide full security declarations, and the number of physical inspections and sampling will increase.


On July 14, Amazon also publicly stated that it would help sellers through this unstable period.



According to Amazon, starting from January 1, 2021, sellers on the European site will be affected as follows:



  • Amazon Fulfillment products using the European Fulfillment Network (EFN) will not be able to be delivered across the UK-EU border.


  • The transfer of Pan-EU inventory between the UK and the EU will cease.

    (EFN and Pan-EU will continue to ship inventory within the EU, supporting sellers selling on the German, French, Italian, and Spanish marketplaces. )

  • Sellers need to provide the information required for customs clearance for cross-border shipments between the UK and the EU.

  • For self-fulfilled orders, the seller is responsible for handling the required customs clearance and paying all taxes and duties.

 

 

Before January 1, 2021, Amazon's European sites will continue to operate as usual, and sellers can use EFN and Pan-EU to sell in five European countries (the UK, Germany, France, Italy, and Spain). However , considering the timeliness issue, it is recommended that sellers split their inventory from now on to ensure that there is sufficient inventory in both the UK and the EU; prepare customs declaration information for cross-border transportation between the UK and the EU in advance, such as the value-added tax number (VAT) and EORI number.

 

Policy-wise, there can only be one EORI number in the EU, but after communication and confirmation with German Customs, sellers who have applied for and registered an EORI number in the UK can apply for a German EORI number from July 1, 2020. Which other EU countries can apply for EORI? Scan the QR code to consult~


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