Navigating Extra Fees After Brexit: UK to EU Imports

The post-Brexit era has introduced a variety of logistical changes for those importing goods between the UK and the EU. Understanding these extra fees and legal avenues for reduction is crucial for maintaining cost-efficient transactions. This article will explore the additional costs incurred and provide guidance on how to legally avoid them.

1. VAT at Import

When goods from the UK arrive in the EU, they attract Value Added Tax (VAT) since the EU is not aware of any VAT levied in the UK. This creates a situation where UK VAT is usually applied again at import into the EU. Legal ways to avoid this include:

Working with UK Providers: Speak to the provider in the UK and request that they do not charge UK VAT at the point of purchase. Gifts Under Threshold: Labeling the goods as 'Gifts' can potentially avoid VAT if the items are of small value. However, it is important to note that this may vary by country and should not be used if the sender is recompensed.

Note that the 'Gift' approach is not legal if the recipient repays the sender, as it would not be a genuine gift in such a scenario.

2. Duty at Import

The Common Trade and Customs Agreement (CFTA) between the UK and EU only covers goods produced in the UK. For goods not of UK origin, such as clothing imported from India, the EU will require import duties. Strategies to mitigate:

Purchasing from EU Sources: Buy items from an EU source if the goods are coming from outside the EU to avoid such duties. Existing FTAs: If the UK has a Free Trade Agreement (FTA) with a third-party country, goods imported from there might only incur one set of duties.

If neither the UK nor the EU has an FTA with the country of origin, you might end up paying double duties. In such scenarios, it may be worthwhile to explore alternative sourcing options.

3. Administration Fees

If VAT or duties are due, shipping companies might manage the administration process on behalf of the seller, leading to additional administration fees. Advice on handling:

Clarify with Sellers: Ensure the seller clearly states whether any administration fees are included in the purchase price. If unexpected fees are anticipated, you can refuse to accept the goods. Customer Service: Engage directly with the seller to negotiate or address any concerns regarding these fees rather than with the shipper.

Your final point of interaction with the seller should clarify any additional charges, ensuring transparency and fair terms.

4. Higher Postage Costs

Shipping goods between the UK and the EU can be more complex and time-consuming than between EU member states, leading to higher postage costs. Strategies to avoid:

EU-based Suppliers: Opt to buy from an EU supplier rather than a UK one to avoid the additional transit fees and complications.

The only sure way to escape these extra charges is to source and purchase from within the EU.

In conclusion, the outcomes of these extra fees can vary widely, depending on cooperation between EU and UK organizations, the nature of the goods, and the specific shipping and import processes. It is advisable to conduct thorough research and ensure clear communication with suppliers to navigate these complexities effectively. The key is to plan ahead, understand the legal options, and maintain a focus on customer service and long-term relationships in the face of post-Brexit import challenges.