The deadline is approaching! Soon your goods will not be able to enter or leave the UK...

Brexit

I think everyone must have heard this news so many times that their ears are callused. After so many years of "shedding", the UK finally gave itself a deadline, which is March 29 this year.

After the Brexit bill officially comes into effect, when this deadline arrives, unless the UK unilaterally terminates the Brexit process, the UK will leave the EU regardless of whether an agreement is reached with the EU or not.

No matter which side you are on, you all hope that even if the UK leaves the EU, you can reach a corresponding agreement with the EU in all aspects. Because the impact of a no-deal Brexit is too great.

If there is a no-deal Brexit, UK customs will likely refuse all goods from entering or leaving the UK, causing a short-term border trade disruption. The possibility of a no-deal Brexit is currently quite high.

A big deal

Amazon has also stepped in to remind sellers to be careful about the UK's no-deal Brexit and to prepare in advance for Amazon to cancel cross-border delivery services between the UK and EU countries.

If there is no agreement on Brexit, the sellers who use the Pan-European Plan or EFN (European Fulfillment Network) will be the most affected. They often ship from FBA warehouses in other EU countries to the UK (or from UK FBA warehouses to other countries). If there is no agreement on Brexit, all transportation routes will be interrupted.

To deal with this situation, the official recommendation is that affected sellers send their inventory to the UK site and other European sites (Germany, France, Italy and Spain) in a timely manner (before March 17) and ensure that the inventory is sufficient to cope with more than 4 weeks of sales.

And after Brexit, even if trade returns to normal, the two operations in and out of the UK mentioned above may be taxed twice (tariffs and VAT), and logistics costs and tax costs will increase significantly.

Note that if there are no two types of logistics needs in and out of the UK, UK FBA sellers will not be affected by logistics disruptions due to a no-deal Brexit, but a no-deal Brexit will likely lead to a depreciation of the pound, so you should always pay attention to the exchange rate and stop losses in time. At the same time, Brexit also means that EU trademarks, patents and copyrights are no longer protected in the UK. In general, none of the impacts of Brexit are good.

Wait, speaking of no benefit, do you remember one of our previous articles?

Is Amazon going to charge tax on this now?

It means that Amazon has established an advertising entity in the EU in accordance with EU regulations and will pay value-added tax to the EU for its in-site advertising services.

So, with Brexit, can this fee be saved? ? Are the sellers on the UK site feeling a little relieved?

Although the UK released the "Partnership Pack" no-deal Brexit plan earlier, it did not release any valuable information, and it is clear that the UK itself is not ready for a no-deal Brexit. If the deadline comes, the UK will have very chaotic consequences if it leaves the EU without a deal under this condition.

Sellers on the UK site should pay more attention to the recent news about Brexit and make timely response plans. Xiaofenshen reminds everyone that there will be an important vote on the Brexit agreement in the week starting from January 14, and everyone needs to know the voting results in time.