No Deal Brexit Questions
Hi folks,
I’ve got a few No Deal Brexit questions that i’m hoping someone will be able to help me with please:
I’m a small sole trader, selling well below the UK VAT threshold so am therefore not VAT registered. I mainly sell to the UK but occasionally sell into the EU (let’s say about 5 a month) but again, I fall well short of the EU VAT distance selling thresholds.
All products are stored in the UK and shipped using Royal Mail Click & Drop which has now been set up with the required electronic information for customs.
So, here’s what i’m a little unsure about in the event of a No Deal Brexit:
-
If i’ve provided the required customs information via RM Click & Drop will I still need to apply a CN22 Customs Declaration label (for orders below £270) to the outside of the parcel?
-
Is a EORI number needed if i’m only sending low value orders? I assume yes, and where does it need to be used if i’m using a CN22 Customs Declaration label?
-
How exactly does the payment of tariffs happen for small items sent through Royal Mail? Would the item get held by the destination country until the customer paid the tariff or is there a way of prepaying the tariff and including it in the sale price?
I hope that all makes sense, any advice would be most appreciated. I have looked at all the various government sites but was still unsure about these few things.
Thank you. 
No Deal Brexit Questions
Hi folks,
I’ve got a few No Deal Brexit questions that i’m hoping someone will be able to help me with please:
I’m a small sole trader, selling well below the UK VAT threshold so am therefore not VAT registered. I mainly sell to the UK but occasionally sell into the EU (let’s say about 5 a month) but again, I fall well short of the EU VAT distance selling thresholds.
All products are stored in the UK and shipped using Royal Mail Click & Drop which has now been set up with the required electronic information for customs.
So, here’s what i’m a little unsure about in the event of a No Deal Brexit:
-
If i’ve provided the required customs information via RM Click & Drop will I still need to apply a CN22 Customs Declaration label (for orders below £270) to the outside of the parcel?
-
Is a EORI number needed if i’m only sending low value orders? I assume yes, and where does it need to be used if i’m using a CN22 Customs Declaration label?
-
How exactly does the payment of tariffs happen for small items sent through Royal Mail? Would the item get held by the destination country until the customer paid the tariff or is there a way of prepaying the tariff and including it in the sale price?
I hope that all makes sense, any advice would be most appreciated. I have looked at all the various government sites but was still unsure about these few things.
Thank you.
0 replies
Seller_YSVJTvJFHSin4
https://www.royalmail.com/brexit/no-deal
If the answers are not on that page (which is a Royal Mail page on no-deal Brexit) it’s hard to see how anyone else could answer them!
Seller_BnqfOH5ahn4zV
Guide to getting Brexit ready Royal Mail Group email (yesterday)
Seller_wL7IMeLD2TOSO
I think no one knows the answer, even cabinet or PM. Because they don’t know what they’re doing.
We sell our products via PAN EU FBA program but we (amazon as well) have no idea how it will work after Brexit.
- Do we need register to VAT for EU countries? the answer is YES. You need to pay over £3,000.00 for subscription and booking.
- But what if the No Deal Brexit affect the PAN EU Program and block it? Hmm… we don’t know.
- So why we must pay £3,000.00 for VAT registration? Hmm… we don’t know.
- Will the Brexit effect customs? Hmm… we don’t know.
- Should we send inventory for PAN EU program before Brexit? Hmm… we dont know.
Seller_BuNMsd0so0Amp
I do send the odd item outside of Europe and attach the CN-22 as required. For the USA an electronic declaration should now, I think, also be made and that’s where Click & Drop comes in.
These orders are for the most part below the destination country’s Import Duty Threshold so no Tax is due.
Mostly these sales come from ebay or my own sites where I can make clear that the buyer is the “Importer Of Record” and is responsible for any Taxes - should there be any.
On amazon it could be ambiguous but at https://www.amazon.co.uk/gp/help/customer/display.html?nodeId=502492
they do say . . . “please note that when ordering from Amazon.co.uk, you’re considered the importer of record and must comply with all laws and regulations of the country in which you’re receiving the goods.”
That should be enough - I hope.
I recently stocked up on Packaging - as I reckon the prices will be going up - but some of them, that I’ve used for years are too small to take the address label and a CN-22 on the same side - which it MUST be together with your return address. Only occured to me after they arrived - ho hum, they’ll maybe just last longer than I thought.
However, if there is a No Deal Brexit that’ll be the very least of my worries.
Like a further slow down in EU sales which is already very clearly happening - as for UK sales, well . . …
Seller_AeSYBToQ271lM
Probably not the best answer but I’ve gone UK only until its all sorted out. I don’t sell much outside of the UK anyway and most of the time its caused me issues with non delivery so I’ve just called it quits until its all sorted out and done and dusted! Then I’ll look at any changes etc and see if its worth me trying again.
Seller_PY6qN1rPPfY0J
I don’t think you will need to do anything much different to your current system, save of course if we leave with no customs deal you will need to fill in the customs info in Click and Drop. You do not need an additional CN22 label - the whole point of adding the customs info to Click and Drop was to get rid of those, and automate the customs declarations.
The biggest potential issue you (and other sellers) face is the potential reluctance of customers within the Eu to buy anything from a UK based supplier if we leave without a deal. Even with a deal, there is potential for sales to drop due to the fact many people in the Eu may not fully understand the implications of our leaving, in terms of them buying goods from the UK.
As a relatively small, non-registered vendor I think registering for VAT and using local FBA (in other words, not cross-border FBA) probably isn’t a viable option for you at the moment because of the cost and hassle. You will probably just have to sit tight and see what happens, and monitor how your sales are affected after we officially leave.
