International shipments to and from the EU after Brexit

By 28 June, 2016July 27th, 2017Luggage, Erasmus, Shipping

la-luna-shipping-transporte-internacional-international-transportation-services-courier-mensajeria-paqueteria-brexit-customs-aduanas-reino-unido-uk-ue-europa

On June 23, the British decided in a referendum that they wanted to leave the European Union, known as the infamous Brexit. The threat of “Brexit” had been confirmed. From now on, the United Kingdom and the European Union begin a negotiation process that will decide what relations they will maintain in the future.

At present, all transport to and from the United Kingdom and the European Union will continue to be handled as before, i.e. under free movement of goods and without customs controls, except for goods such as alcoholic beverages, tobacco and fuels, which are subject to excise duty.

The usual rx security controls and those determined by the authorities of different countries will continue to be applied, since they serve to rule out risks by air, sea and land transport chains.

Due to the Pound situation following the Brexit referendum, shipments originating in the United Kingdom that are quoted in this currency are recording significant declines. Therefore anyone who needs to make a shipment from the UK will benefit from better prices on their transport.

If the United Kingdom finally proceeds to Brexit, it would have a “third country” status. This status occurs with countries in the same situation as Switzerland, Norway, Andorra or Iceland. It means that customs controls will apply and goods will be subject to the settlement of tariffs and VAT that are applicable at the time of customs clearance.

The customs procedure, which is simple and agile, will mean that the transit of some goods will slow down. As a consequence, there will be an increase in costs for the application of tariffs and taxes. And don’t forget customs agents fees.

A practical example about Brexit, which has been raised by a customer

You want to buy a bicycle manufactured in United Kingdom, which has a price, at the exchange of 1000.- EUR (British VAT included). The transport is 60.- EUR, therefore the final price to receive the bicycle is 1060.- EUR.

If Brexit is done and bicycles are charged a 14% fee (similar to other countries outside the EU):

  • The British seller will sell without VAT, so the value of the bike will be: 833.33
  • The cost of transport without VAT is 50,00 EUR
  • Border value: EUR 883,33
  • Tariffs 14%: 123,63 EUR
  • VAT Spanish 21% on value + tariff: 211,46 EUR
  • Customs agent fees: 60,50 EUR (VAT incl.)
  • Total final cost: EUR 1278,92

As we see, the product is almost 28% more expensive. Therefore many products imported from the United Kingdom will no longer be competitive and interesting for consumers in the European Union.

We hope that a solution will be found that will enable the United Kingdom to remain in the European Union. Since Brexit is detrimental to everyone involved.

If you have any questions regarding possible regulatory changes to shipments to and from the UK; You want more information or a quote, contact us through our email info@laluna.coop or call one of our telephone numbers.

Leave a Reply