"If the headline of international news today is Brexit, it means today is another calm day" The above sentence means that Brexit has become a long and boring family ethics drama. Brexit only pops up when there is nothing else important to report. However, this situation has changed after May stepped down and the new Prime Minister Boris took office. After accepting the Brexit task, Boris's approach was very aggressive. He directly stated that at the end of this month (October 31), he would officially leave the EU regardless of whether an agreement was reached with the EU or not. In order to prevent Parliament from rejecting his Brexit proposal, he even instigated the Queen of England to exercise her prerogative to shut down the entire Parliament for more than a month. Such outrageous actions even stunned the political parties themselves, and triggered a wave of marches in the UK to protest against Boris's insult to democracy. The British Parliament was therefore suspended until October 14. During the suspension period, Boris was not idle. He took advantage of the lack of interference and obstruction from the Parliament to quickly reach a Brexit agreement with the EU. And Boris officially announced the news on Twitter last Friday. Seeing that Boris had already reached an agreement, and those in Parliament who opposed Brexit had less than 20 days to come up with a way to prevent the Brexit agreement, the balance of victory seemed to have tipped towards Boris. Many media were asking everyone to prepare for a Brexit with an agreement, but unexpectedly something went wrong this weekend. ◆ ◆ ◆ ◆ Current status of the Brexit process In a crucial vote in the UK House of Commons on Saturday, the vote on Boris Johnson's Brexit proposal was over before it even began. Because before the voting began, Parliament passed an amendment, which stated that "no matter what the result of this vote is, it does not mean that Parliament has approved the Brexit proposal. This vote can only represent the intention." This amendment directly made the vote legally ineffective. The agreement between Parliament and Boris stated that if no agreement could be reached with the EU before October 19, or if an agreement was reached but not approved by Parliament, Boris would have to apply to the EU for a Brexit extension. In other words, it is even worse than May's proposal being opposed by Parliament. Parliament simply did not give Boris a chance to vote. However, Boris is no pushover as he can shut down Parliament. In submitting the application for Brexit extension to the EU, Boris kept a trick up his sleeve - he did not sign the application. ▲Unsigned Brexit extension application Along with the application, another letter was sent to the EU, which stated that the decision of Parliament was extremely wrong and requested the EU not to agree to an extension. He (Boris) could complete a valid vote on the Brexit agreement before the 31st. On the surface, he cooperated with the parliament to apply for an extension from the EU, but secretly asked the EU not to agree. We don't know whether Boris is doing this for show or really wants the EU to refuse. However, the period from now to the end of the month will determine the progress of Brexit. If Boris really has to leave the EU by the end of October as he promised, he must quickly complete the legislation of the current agreement and hold another effective vote so that the UK can complete the agreement to leave the EU by the end of the month. Otherwise, if the EU believes that Boris has rejected the agreement to extend Brexit, the UK will face a hard Brexit without a deal. So what impact will a Brexit with or without a deal have on our cross-border sellers? ◆ ◆ ◆ ◆ Impact on our sellers Let’s talk about Brexit by agreement first. Leaving the EU means changes in the following three aspects. 1. The time efficiency for customs clearance of goods will be greatly reduced, because the current logistics customs clearance model and channels in the UK will no longer be applicable due to Brexit, and logistics companies will also need to establish new models. Before this, our sellers on the UK site may bear more costs. 2. It is no longer possible to use the "Pan-European Plan" for remote sales, whether the warehouse is in Europe selling to the UK or vice versa. These channels will be cut off after Brexit. 3. The EU trademark and EORI number will no longer be applicable to the UK site. Sellers need to re-register the UK EORI number starting with GB. The impact of a no-deal Brexit is even greater. Not only can it cause the same impact as above, but a no-deal Brexit may even lead to the UK blocking customs and prohibiting the import and export of goods for a period of time. So we still hope that in the next week, Boris can complete the legislation as soon as possible and let the Brexit agreement pass an effective vote in Parliament. If the remote sales in the UK are relatively substantial, I still recommend applying for UK VAT separately and registering a UK site for sales. After all, there are too many uncertainties in the Brexit process. |
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