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Brexit has its first hiccups

2021-01-06T11:13:55.375Z


Complicated or even impossible deliveries, cumbersome VAT management, internet restrictions abroad are some concrete cases


Brexit continues to not be easy.

While the European Union (EU) and the United Kingdom, which the latter chose to leave, managed to reach an agreement, which entered into force on January 1, on their trade relations after years of discussion and a few days of the deadline, the first concrete difficulties are being felt at the start of 2021.

Lack of sandwiches on the shelves of an iconic British supermarket in Paris, the inability of the British to access their favorite series in streaming under the Spanish sun, suspended supplies, tax complications ... Businesses and consumers are thus facing a series hiccups in cross-Channel trade since the effective entry into force of Brexit on January 1.

Supply issues

The agreement concluded in extremis between London and Brussels does not provide for any quota or customs duties.

But the free movement of goods between EU countries and the UK is over, except between Spain and Gibraltar, as well as between Northern Ireland and the Republic of Ireland.

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New formalities are in place and difficulties sometimes arise.

Six loads were refused for example on Friday in the port of Holyhead, Wales, because they were not in order.

Northern Ireland benefits from specific customs provisions.

Agri-food products arriving from Great Britain require new formalities and controls, however, which appears to be causing some disruption.

"A small number of our products are temporarily unavailable to our customers in Northern Ireland pending confirmation of cross-border arrangements," said a spokesperson for the Sainsbury's supermarket chain.

"We are working hard to return to our usual full range soon."

In France, the food supply to iconic British stores Marks & Spencer was severely disrupted on Tuesday due to new export rules between the UK and the EU.

In the sign on Boulevard Montmartre, in the heart of Paris, customers look gloomy in front of the empty shelves of prepared meals.

“It's deserted, it's sad.

I never imagined that it could have that kind of impact.

I come at least once or twice a week and it's a shame, ”laments a woman who came to do some shopping.

VAT complicates, slows down and increases the cost of shipments

European retailers are also having difficulty marketing their products to the UK due to a change in VAT rules.

Since January 1, Brexit requires customs declarations for all packages between the United Kingdom and the European Union.

The goods sent are subject to VAT.

Also, as of January 1, for goods sent by traders direct to consumers in the UK valued at less than 135 pounds (approx. 150 euros) UK VAT applies and must be paid by the 'sender.

Above this value, VAT is paid by the recipient.

Many traders must therefore review their procedures.

This is the case, for example, of the Finnish site specializing in the sale of outdoor clothing and equipment Scandinavian Outdoor.

“Placing an order will be possible as soon as our UK VAT registration and the entire UK post-Brexit sales process is settled,” he says.

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The carriers, for their part, pass on the costs generated by these new formalities.

The French group La Poste (Colissimo, Chronopost, DPD) thus applies "a supplement of a few euros per package to their e-merchant customers".

Traders may in turn then be tempted to pass the cost on to consumers.

Limited overseas streaming for Brits

Britons who travel to EU countries, or have a second home there, for example, can no longer stream their favorite shows.

Subscribers to the Amazon Prime service and Sky TV group channels have so far benefited from access to their programs while traveling within the EU, under European rules establishing a single digital market.

This access ended on January 1.

Some opportunities for customs and duty free

On the Italian side, there does not seem to be any complaints about trade malfunctions at the moment.

For Marcello Minenna, Director General of the Customs and Monopolies Agency, Brexit may even "prove to be an opportunity to make the Italian customs system even more efficient".

According to his estimates, the costs related to customs formalities can be reduced by around 20%, for example by creating "customs free zones" with exemption from customs duties and VAT for goods imported by companies there. install.

In order to take advantage of Brexit, the mayor of Calais (Pas-de-Calais), Natacha Bouchart, wishes, for her part, to set up a duty free system, tax free, throughout the "border town" in order to support businesses and attract new visitors. Since 1 January, British travelers have been allowed to make purchases in duty-free shops, particularly in airports and ports. In Calais, a duty free store should be set up by October 2021 in a building in the new port.

Source: leparis

All business articles on 2021-01-06

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