My Business Can't Survive This Mess - BREXIT

Discussion in 'International Business' started by Confused!!, Mar 19, 2021.

  1. Mr D

    Mr D UKBF Legend Free Member

    28,146 3,467
    UK does not benefit.

    However how many of us think of the UK when looking at how to sell, where to sell, what to sell?
    I know its not a factor in my calculations.

    In terms of customers - they can get the products without paying extra, without customs delays and returns are relatively simple.
    In terms of the business - the jobs will be where the work is. If needs a distribution centre themselves then that is what is done. Local jobs in the local area for EU sales rather than UK jobs.
    Though jobs are a cost of business - we should not be looking to create or keep jobs simply for the benefit to the country, only benefit of the company or long term plans.
    May be a side effect that jobs are created or kept by business decisions. But unless someone else is paying for them (a la furlough scheme) then no reason a job is paid for simply to benefit the country.

    UK business selling to French customers from a French warehouse..... the profits end up where? UK business? And who gets to tax the UK company? The French? Or the British?

    What would not benefit the country at all (bearing in mind what I said about it not being a factor in decision making) - is to simply move the business entirely to the EU.
    If that is where the customers are then it makes sense.
     
    Posted: Mar 19, 2021 By: Mr D Member since: Feb 12, 2017
    #21
  2. Trevor Andrews

    Trevor Andrews UKBF Regular Free Member

    111 31
    The €26 is probably the admin fee not a tax. We have same problem offering our customers here in Spain a delivery to UK. Our courier has quoted a €31 fee for handling customs documentation and collecting any taxes. We had delivery from UK and it was €42 VAT, which we would have to pay anyway, and €36 charges.
    We have had to add this cost to prices and looking for European suppliers wherever possible.

    So we are promoting ourselves to UK consumers as a cheaper way to send things to their friends and family in Europe. We are a gift shop so it may not be so easy for you.

    Of course instead of moaning about Boris you could give him a ring and he will tell you what you can do.
     
    Posted: Mar 20, 2021 By: Trevor Andrews Member since: Feb 9, 2021
    #22
  3. japancool

    japancool UKBF Big Shot Free Member

    4,374 900
    I don't understand why these fees are so high. The fee for handling a delivery from the rest of the world isn't more than £12 or so, at least in the UK.
     
    Posted: Mar 20, 2021 By: japancool Member since: Jul 11, 2013
    #23
  4. gpietersz

    gpietersz UKBF Ace Full Member

    1,990 481
    Couriers raising prices because they know people have not yet shopped around for better prices? Maybe EU customs is particularly expensive or complex?
     
    Posted: Mar 20, 2021 By: gpietersz Member since: Sep 10, 2019
    #24
  5. japancool

    japancool UKBF Big Shot Free Member

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    Any more than it used to be?
     
    Posted: Mar 20, 2021 By: japancool Member since: Jul 11, 2013
    #25
  6. gpietersz

    gpietersz UKBF Ace Full Member

    1,990 481
    From the UK, yes, as there were none. How much does dealing with EU customs cost from other countries outside the customs union? Its also possible nationalistic EU officials are deciding to be difficult over British exports often enough to affect the average price.
     
    Posted: Mar 20, 2021 By: gpietersz Member since: Sep 10, 2019
    #26
  7. Newchodge

    Newchodge UKBF Big Shot Free Member

    15,362 4,203
    Perhaps because of the teething problems and the parties being expected to make so many mistakes on their paperwork?
     
    Posted: Mar 20, 2021 By: Newchodge Member since: Nov 8, 2012
    #27
  8. japancool

    japancool UKBF Big Shot Free Member

    4,374 900
    Importing from Britain should be no more complex than importing from the rest of the world. There is no particular reason why handling fees should be any more expensive than importing from China, or the US, or Australia, or anywhere else.
     
    Posted: Mar 20, 2021 By: japancool Member since: Jul 11, 2013
    #28
  9. japancool

    japancool UKBF Big Shot Free Member

    4,374 900
    Then we should expect to see fees come down in the coming months.

    I had an incoming delivery from Europe via UPS, and they only charged the standard £10 fee for handling customs, same as when I import from Japan.
     
    Posted: Mar 20, 2021 By: japancool Member since: Jul 11, 2013
    #29
  10. Mike Foulds

    Mike Foulds UKBF Regular Free Member

    121 42
    I think the main fault through all of this is communications. Both in the run up to the referendum, when people were given misleading information by BOTH sides as to what would happen if the UK left the EU (Obvious example is the £350 Million a day for the NHS, which even Leave admited afterwards was false), what was definite, what was speculation, and what was still to be negotiated and agreed upon, and also some people just making assumptions.

    The reality has been that voting "no" has just led to a rabbit hole of uncertainty, with some industries suffering more than others (EG the Seafood industry, who now has a huge amount of extra paperwork and cost to complete for each shipment), and exports to the EU dropping dramatically for the first 3 months of 2021.

    Until everyone adapts to the new normality, I don't think we will fully understand the fallout and effects of leaving, but the quicker people accept and adapt, the quicker that will happen.

    For the OP, I would suggest considering other methods of shipping, and, as has been suggested by others, dependant on your volumes, basing your storage in an EU country. It won't solve the problems, but may limit the damage.

    Unfortunately, small businesses, who primarily export to the EU, were always going to be one of the big losers, in nearly ANY scenario, if the UK left the EU, so either moving yourselves to an EU country, or finding a new customerbase here in the UK, or elsewhere in the world, as suggested by others, may actually be the best solution for you, I am sorry to say.

    Good luck finding a workable solution.
     
    Posted: Mar 22, 2021 By: Mike Foulds Member since: Mar 21, 2018
    #30
  11. gpietersz

    gpietersz UKBF Ace Full Member

    1,990 481
    But the balance of trade improving.

    Covid might have something to do with it.
     
    Posted: Mar 22, 2021 By: gpietersz Member since: Sep 10, 2019
    #31
  12. Mike Foulds

    Mike Foulds UKBF Regular Free Member

    121 42
    @gpietersz Yes, COVID has impacted, but COVID impacted more in 2020, and did not lead to the fall/issues as of the 1st Jan, nearly 3 months ago, those were narly entirely linked to BREXIT and people either being cautious and not shipping, or being caught out trying to ship. Whilst the situation is recovering, it is still down on last year, and there are definitely more hoops which both importers and exporters need to jump thorough to make shipments happen.
     
    Posted: Mar 22, 2021 By: Mike Foulds Member since: Mar 21, 2018
    #32
  13. MarkOnline

    MarkOnline UKBF Regular Free Member

    370 115
    Things are a bit up in the air, our business to the EU hasnt been affected that much, but our volumes were relatively low compared to other international markets. Its early days yet, give it more time to settle down and see how things are then. I think the carriers are milking the situation somewhat, but that may change. UK goods are generally sold at a lower price point than other EU businesses in the same market space.
    Good luck.
     
    Posted: Mar 22, 2021 By: MarkOnline Member since: Apr 25, 2020
    #33
  14. Pish_Pash

    Pish_Pash UKBF Ace Free Member

    2,534 655
    The OP shows a woeful grasp (which is alarming given his target customer seems to be in the EU)

    VAT is a consumer tax (& should only be paid once), therefore, for EU sales, he should have removed the VAT (that he used to give to HMRC)...end result is that his customer pays more or less the same in VAT...there may be an admin charge at the destination country for collecting the VAT ...and that's unavoidable.

    Re free trade agreement (aka paying Duties)...that only benefits goods with Country of Origin that the EU has a free trade deal with (UK, Japan etc.)...if you're selling tat from Taiwan...Duty will still apply when selling to EU customers.
     
    Posted: Mar 22, 2021 By: Pish_Pash Member since: Feb 1, 2013
    #34
  15. jimbof

    jimbof UKBF Regular Free Member

    337 78
    Set up with a courier firm on a Delivered Duty Paid basis and include those costs in your pricing?
     
    Posted: Mar 24, 2021 By: jimbof Member since: Apr 10, 2020
    #35
  16. apricot

    apricot UKBF Regular Free Member

    426 43
    We are in the same boat! We couldn't find any solution but move to EU.

    We picked the Germany to move but Ireland is the best option as no need to learn a language and taxes are better than any other EU countries.

    Alternatively, you can try to use a fullfilment center in EU like go2tigers or regionalexpress. It is very complicated and expensive to work with a fullfilment but it mght be better than moving somewhere else.
     
    Posted: Mar 25, 2021 By: apricot Member since: Apr 7, 2012
    #36
  17. Trevor Andrews

    Trevor Andrews UKBF Regular Free Member

    111 31
    I agree, but I guess its about collecting UK's Import VAT tax. Hopefully once the systems get going the fees will come down.
     
    Posted: Mar 26, 2021 By: Trevor Andrews Member since: Feb 9, 2021
    #37
  18. COVID20

    COVID20 Guest

    0 0
    I though this was meant to be a source of information, support and help. It seems like most replies are people taking pleasure from the original posters pain.

    This is a huge problem and there is no consistency when receiving goods into Europe.

    Its a total mess and God only knows how to solve the problem.
     
    Posted: Apr 1, 2021 By: COVID20 Member since: Jan 1, 1970
    #38
  19. japancool

    japancool UKBF Big Shot Free Member

    4,374 900
    And why is that Britain's fault?
     
    Posted: Apr 1, 2021 By: japancool Member since: Jul 11, 2013
    #39
  20. Mr D

    Mr D UKBF Legend Free Member

    28,146 3,467
    Oh solving the problem?
    That appears to be either bypassing the border issue (setting up within EU) or else bypassing the EU as a market.

    We could spend the next 20 years trying to get a 'better' trade deal, most likely improving one element by reducing another element.... which won't solve the OP's problems.
     
    Posted: Apr 1, 2021 By: Mr D Member since: Feb 12, 2017
    #40