Selling on Amazon and Brexit
10 Jan 2019
Current situation as of today, 20 January 2019
It can be summed up with the words of Marjorie M. Liu:
“Expect the unexpected, for the unexpected will almost certainly expect you”
Brexit
The UK government has still not voted on the exit deal from the European Union, meaning the exit conditions remain unknown in most areas, including cross-border trade, transaction settlement, and the flow of goods, which of course is closely related to selling on Amazon.
If you are wondering whether to start your business on Amazon from the UK right now, we advise a moment of patience until the situation becomes clearer.
If you are already selling on Amazon.co.uk, you will need to closely monitor the developments in the coming months. We are keeping a close eye on this issue and will report on the progress of this “divorce” in terms of its impact on sales on Amazon.
The final deadline for the UK’s exit from the European Union is 29 March 2019.
What is known at this point?
The UK government advises businesses to prepare for the possibility of leaving without signing a deal, known as a “no deal”. In this case, one can expect temporary difficulties related to shipping products to the UK due to the lack of customs procedures or the arbitrariness in their interpretation.
Amazon assures that goods in British FBA warehouses will be delivered normally to customers from the UK, but there may be fluctuations in inventory shifts within the EFN (European Fulfilment Network):
If your goods are located in FBA warehouses on the continent and you participate in PAN FBA, their transfer to warehouses in the UK may initially be difficult.
If you store products solely in the UK, ensure higher inventory levels before 29.03.2019.
Amazon recommends shipping to centres located in the UK by 17.03.2019.
The UK government has prepared an information package regarding changes in goods turnover in the event of a “no deal” scenario:
The rules for the settlement of VAT on goods located in the UK will remain unchanged.
Import duties on goods entering the UK will be introduced from 29.03.2019 at 23:00.
Negotiations and ratification of the agreement are still ongoing. What is certain is that from 29 March 2019, the UK will no longer be part of the EU, which means additional administration of shipments and accounting for sellers.
What’s next?
If you are an active seller in the UK, start production and purchasing to secure inventory levels in the UK before 29.03.2019. Prepare for a “no deal” scenario – check such issues as:
EORI registration,
anti-dumping duties,
tariffs and customs declarations,
customs procedures (CPC),
classification of goods according to the “commodity code”,
import licence (for goods with restrictions),
SAD declarations.
Some of these procedures will be straightforward, while some will be aided by electronic systems, carriers, or accountants, but selling on amazon.co.uk will no longer be as simple as it was.
If you have additional information, links, interpretations, or want to share questions and conclusions, please write in the comments below the article.
What you need to know after 29.03.2019 – UK import guide
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Happy UK Selling,
Go2Market Crew