How will EU Orders be affected by Brexit

The UK will finally be leaving the EU common market once the transition period ends on 31st December 2020. This will have an impact regardless of any negotiated trade deal.

After 1st January 2021, the UK will be a 3rd Country as far as the EU is concerned and all shipments into the EU will be subject to the same customs rules as shipments from anywhere else in the world eg China.

This means that they will require documents to clear customs including Commercial Invoice and goods description. A Declaration of Conformity will also need to be supplied if it is requested. The products will still need to confirm with EU regulation and be CE marked. All Kanda products are CE marked.

VAT

So far this just affects Kanda and not you as the customer. What impact will it have on you?

Well the most obvious change is that as a 3rd country, we will not charge VAT on EU shipments. However, VAT will become due once the goods are imported into the EU. This means that the shipper will request that you pay the VAT (at your local rate) before the goods can be delivered. If you are VAT registered, you will be able to claim it back.

Different EU countries have different rules for dealing with import VAT. Some countries allow you to defer the payment until your next VAT return,

  • Article 23 permit in Netherlands,
  • ET14000 licence in Belgium,
  • ATVAI in France

Contact your local VAT office for more information.

You can enter your VAT number during checkout. This will help your shipment clear customs faster.

Duty and Customs Charges

The UK and EU have agreed a basic Free Trade Agreement. This means that the EU will not charge custom duty rate on products manufactured in the UK, which is all Kanda products.

Goods that are manufactured elsewhere, such as Sena or Waveshare products, will be traded on World Trade Organisation (WTO) rules. The rate of duty charged depends on the Harmonised Tariff Code used for the shipment.

The good news is that our products do not attract any duty. The tariff codes for our shipments have 0% duty because they are used by industry and are not consumer goods.

Customs Clearance Charges

We use Fedex for Express shipments and they will apply an administration fee for clearing the parcel through customs. We are not 100% sure if this is the same in all countries but we have seen a clearance fee of 16 Euro for first 5 items and 8 Euros for each additional item. In addition, there is a 5 Euro fee for extra days delay if the charges aren’t paid promptly. So a typical order will cost 16 Euros to clear by Fedex.

With airmail shipments, VAT will have to be paid as before but the customs clearance fee varies from country to country as each postal service has their own rules. It will be less than Fedex though.

EORI Number

An EORI number is a company identification number used by customs when goods are imported into the EU. If you have ever bought goods from outside the EU, you will have one. Some countries issue them automatically if you register for VAT but others require a specific application.

We are not sure if you will need one for airmail shipments – we don’t think so but we will have to wait an see. Express shipments by Fedex may need one or they may be able to use your VAT number, again we are waiting for clarification.

If you are asked for an EORI number, you can get them quickly free of charge from your local VAT office, so your parcel should not be delayed for long.

Conclusion

Not much will change for our EU customers. We will not charge VAT but you will have to pay VAT on import. If you are VAT registered, you can claim it back and may be able to defer it, depending on your country.

You will not be charged duty on our products even under WTO rules. Your shipment may take a bit longer because of customs checks. You will be charged an administration fee for clearance.

It might be a good idea to apply for an EORI number as they are free and last for ever. They relate to your VAT number usually but non-VAT registered customers can get one.

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