Get Ready for Brexit (MFN) Webinar


#1

I just watched to the Get Ready for Brexit (MFN) webinar that Amazon streamed for MFN sellers, quite useful.

One thing that has made me a little concerned is that Amazon expects all customs tariffs to be prepaid for any goods going to the EU (if there is a no deal outcome) but as far as I know Royal Mail do not yet offer this option through their Click & Drop system. Hopefully it will be added otherwise it’s going to be a little difficult to keep using Royal Mail for Amazon orders to the EU.

I know as it currently stands, if I ship a non-Amazon order using Royal Mail Click & Drop, to somewhere like the US… the customer has to pay applicable duties and fees to the US Postal Service before they will release the parcel.


#2

That would only refer to goods listed on EU sites and posted from the UK, if listed and sold on the UK site then similar situation as with shipping to USA, or overseas.


#3

I hope you are right because that’s not what was said in the webinar. They’ll be posting the recording of it sometime this week so i’ll rewatch.

They did specifically say Amazon customers will not be expected to pay customs fees on top of the selling price and it’s up to the seller to prepay the customs fees (and I assume include it in the shipping price). :man_shrugging:


#4

Yes, for goods listed on and sold on EU sites, but posted from outside of the EU (which the UK will be after Jan 21).

It cannot apply to goods listed and sold on the UK site to a Customer in EU 27, as the point of sale will be the UK and the buyer in the EU will then be the importer.


#5

I had assumed this would be the case because it makes the most sense and follows the international norm but I must admit my heart did skip a beat when they said sellers will need to prepay the customs fees on Amazon orders.

I think you are probably spot on with what you say but as the webinar was called Get Ready for Brexit: Selling across EU/UK customs border via Seller Fulfilled you think they would’ve clarified the point that it’s prepay custom fees on EU marketplace orders but not on UK marketplace orders (going to an EU country). :face_with_raised_eyebrow:


#6

I was on that webinar as well. The same things occurred to me.

You have to combine this with the info about the changes that are happening in the EU next July:

https://www.avalara.com/vatlive/en/vat-news/eu-2021-ending–22-import-exemption–import-oss-returns.html

It sounds like Amazon may have to collect and remit the VAT to the correct authority on behalf of sellers.

Either that or each seller will need to vat register in one EU country plus register for IOSS and provide returns so the VAT can be prepaid.

Either way in order for it to be possible to continue using Royal Mail there needs to be some way of labelling orders so that the receiving postal service knows that tax has been paid and the order can be delivered without having to be assessed for VAT / Duty.

Otherwise the only way to ship things to the EU will be via courier as they have the facility to bill duties and taxes to the account holder (sender).

Does anyone know what the name of the Royal Mail guy on the call was? I was going to email him and see what he says.

I spoke my Royal Mail account manager and she sounded like she sort of knew what I was talking about. She seemed to think the problem lay with Amazon requiring deliveries to be made DDP to customers (duty paid). That isn’t the problem as far as I can see as it’s perfectly sensible to expect that.

Then you have the new EU regulations, these seem to be designed to prevent non eu sellers from avoiding VAT which is also reasonable.

Currently everyone seems to be gearing up for a no deal brexit. It’s like a oil tanker headed for the rocks, I don’t feel like the accident can be averted now.

If there is a ‘deal’ will this mean goods can move as they do now?


#7

I’m completely confused about this. I sell secondhand books, CDs and other media items, solely from the Amazon UK site, to customers all over the world. I’m not VAT-registered. Value of orders is usually under £20 (22 euros), so should be non-VAT-able from January 2021 in EU countries. All I do currently is complete the Royal Mail CN22 customs declaration form and assume that the items are duty-free tax-free to the customer due to the low value. I’ve never been contacted by non-EU customers complaining about having had to pay duty on receipt of the order. I don’t know anything about HS Codes and don’t currently include this information on the CN22 form. I’ve just watched the webinar and am none the wiser. Will anything change from January 2021 for sellers like me, apart from the need for CN22 forms for EU as well as non-EU customers? Should I be including the HS Code on the CN22 form? Do I need an EORI number? Will I need to pay the VAT due on items above 22 euros in value?