Jump to content
  • Join our community

    Sign-up for free and join our friendly community to chat and share all things R/C!

Will Brexit kill rc.


pflatoutbj

Recommended Posts

11 hours ago, m4inbrain said:

 

That works for stuff from the US. 

 

It technically works for stuff from the EU if you're willing to pay 20% VAT on your item twice. Because make no mistake, even with a freight forwarder, you pay VAT/Duty on import (in fact you do even if it's marked as "gift"). That only works out somewhat from the US because they don't collect VAT on sale. 

 

In europe, they do. You buy an item, where the price includes 20% VAT - it goes to the freight forwarder, then across the border, where HMRC collects 20% VAT again, plus duty. So it's actually less of an option than you might think. 

 

There is now no import duty for anything up to £135 in value. The seller must pay HMRC the 20% VAT directly from wherever they are in the world, not loaded for the purchaser to pay on import.
Whether that is going on is another question entirely and is why companies are understandably not supplying to the UK now if they have to collect 20% VAT at their end and send to the UK HMRC - lots more paperwork and procedures for them cutting into any potential profit. It may end up being an extra 20% charge for UK purchasers on checkout for instance.
 

https://www.gov.uk/government/publications/changes-to-vat-treatment-of-overseas-goods-sold-to-customers-from-1-january-2021/changes-to-vat-treatment-of-overseas-goods-sold-to-customers-from-1-january-2021#:~:text=The new arrangements mean that,to £39 will remain

 

It's no longer an EU / non EU issue either as it's now all the same.

Quote

At the end of the transition period, the government will introduce a new model for the VAT treatment of goods arriving into Great Britain from outside of the UK. This will ensure that goods from EU and non-EU countries are treated in the same way and that UK businesses are not disadvantaged by competition from VAT free imports. It will also improve the effectiveness of VAT collection on imported goods and address the problem of overseas sellers failing to pay the right amount of VAT on sales of goods that are already in the UK at the point of sale.

 

Quote

 

Outline of the changes
For imports of goods from outside the UK in consignments not exceeding £135 in value (which aligns with the threshold for customs duty liability), we will be moving the point at which VAT is collected from the point of importation to the point of sale. This will mean that UK supply VAT, rather than import VAT, will be due on these consignments.

The new arrangements will also involve the abolition of Low Value Consignment Relief, which relieves import VAT on consignments of goods valued at £15 or less.

Online marketplaces (OMPs), where they are involved in facilitating the sale, will be responsible for collecting and accounting for the VAT.

For goods sent from overseas and sold directly to UK consumers without OMP involvement, the overseas seller will be required to register and account for the VAT to HMRC.

 

 

Quote

 

Goods located outside the UK at the point of sale
These new arrangements will apply to sales of goods to GB customers where the consignment does not exceed £135 in value. This aligns with the threshold for relief from customs duty, thus minimising the impact on customs procedures. Consignments above that value will remain subject to existing customs rules and processes and from 1 January 2021 UK VAT registered businesses will be able to use postponed VAT accounting to account for import VAT on their VAT return.

For most consignments not exceeding £135 in value, instead of VAT being collected at importation or delivery to the customer, VAT will be accounted for at the point of sale.

For VAT purposes the supply will be treated as follows:

if an OMP is not involved in facilitating the sale, there will be a supply direct from the seller to the consumer, which will be deemed to take place in the UK and so liable to UK VAT
if an OMP is involved in facilitating the sale, they will be deemed, for VAT purposes, to be making the supply to the UK consumer, which will be deemed to take place in the UK with UK VAT chargeable accordingly
In both instances the value of the goods for VAT purposes will be based on the price at which they are sold to the consumer rather than any valuation calculated at the point of importation.

For goods that are located overseas at the point of sale, the new arrangements will apply irrespective of where the OMP or the business selling the goods is established.

This means that the following types of businesses will have to register for UK VAT (if not already registered) and account for VAT to HMRC:

any business that operates an OMP that facilitates sales of goods to UK customers
any business that sells goods directly (without OMP involvement) to UK customers where the goods are (a) outside UK at the point of sale (b) imported to the UK in consignments not exceeding £135 in value
Businesses established outside the UK and selling goods to UK customers where the goods are already in the UK at the point of sale are liable for UK VAT on those sales under existing rules. Such businesses should already be VAT registered.

 

 

Edited by DAL3D
Link to comment
Share on other sites

Maybe it'll bring back some factories to the UK and not just for R/C

 

I'm sure it'll work itself out in the end, I'm not worried about it, it's not as if any of us individually can make any kind of difference to it.

  • Like 1
Link to comment
Share on other sites

3 hours ago, DAL3D said:

 

There is now no import duty for anything up to £135 in value. The seller must pay HMRC the 20% VAT directly from wherever they are in the world, not loaded for the purchaser to pay on import.
Whether that is going on is another question entirely and is why companies are understandably not supplying to the UK now if they have to collect 20% VAT at their end and send to the UK HMRC - lots more paperwork and procedures for them cutting into any potential profit. It may end up being an extra 20% charge for UK purchasers on checkout for instance.
 

https://www.gov.uk/government/publications/changes-to-vat-treatment-of-overseas-goods-sold-to-customers-from-1-january-2021/changes-to-vat-treatment-of-overseas-goods-sold-to-customers-from-1-january-2021#:~:text=The new arrangements mean that,to £39 will remain

 

It's no longer an EU / non EU issue either as it's now all the same.

 

 

 

 

I'm (somewhat) familiar with the system. 

 

That has nothing to do with the example of freight forwarding though. The point of sale and point of arrival is both in the EU if you use a freight forwarder, hence 20% VAT paid to whatever country you buy in. Another 20% will then be charged by the UK customs, plus duty depending on value. That's why i said that it works for orders from the US where VAT is not charged at the sale, hence only paying VAT when coming to the UK. 

 

edit: in case you're not familiar, a freight forwarder is simply an address in the country of sale that the package gets sent to (hence 20% VAT paid to the country of sale). Sometimes those in fact are private addresses, depending on what freight forwarder you go with. They sign for it, and then ship it from there to wherever you are. It's a nice option to get around restrictions (for example, SMC in the US does not supply europe with batteries - you could use parcel forwarding though to get them if you needed to). But in the case of EU, you'd be paying 20% VAT and potentially duty on top (duty would apply from the US as well - but not VAT, twice). 

Edited by m4inbrain
Link to comment
Share on other sites

Companys who dont want to ship to the UK due to new tax laws is cause they NOT paying tax   now they have to  register  if they do the tax man will find out how much they been selling and.not paying tax on it if some company can say we not shipping to the UK because they can afford to.lose the bussines  eather  they are mega rich and dont need the cash/business  or dont want HMRC to know how.much cash deals they make .  

 

NO BUSSINESS MAKES enough cash that they shut down selling to an entire country  becuse they done want.to fill out some forms ?????? Even Phil Greedy (sorry)  green would fill out the forms .

Link to comment
Share on other sites

1 hour ago, Iain .R said:

Companys who dont want to ship to the UK due to new tax laws is cause they NOT paying tax   now they have to  register  if they do the tax man will find out how much they been selling and.not paying tax on it if some company can say we not shipping to the UK because they can afford to.lose the bussines  eather  they are mega rich and dont need the cash/business  or dont want HMRC to know how.much cash deals they make .  

 

NO BUSSINESS MAKES enough cash that they shut down selling to an entire country  becuse they done want.to fill out some forms ?????? Even Phil Greedy (sorry)  green would fill out the forms .

Not quite.

Those companies surely pay their corporate tax in their own country. And will continue to do so.

And that tax is based on their profits.

HMRC never had any stake in their corporate taxes.

And you as a receiver of the goods always had to pay VAT.

Before, you paid the VAT to HMRC via Royal Mail or Parcel Force plus their admin fee.

Now you pay VAT directly to the shop and they then transfer it to HMRC.

 

The only difference now is that products cannot be illegally undervalued in the customs declaration to reduce the VAT.

But that was always a "service" or favor to the customer. It never affected the sellers profits.

At the end we, as customers, were always happy to receive an illegally undervalued shipment to save on VAT.

 

And the really big companies (like Amazon/Aliexpress/ebay) have their processes already adjusted.

They continue selling to the UK.

I just made an order with Aliexpress and they now added the UK VAT at checkout.

No more avoiding the VAT for me by receiving an undervalued shipment.

But I never had a problem paying VAT. After all, it is good for the country.

 

But for the smaller companies like EuroRC or Modellsport Berlinski (to name 2) the UK business might not be big enough compared to all their other customers.

If EuroRC sells mostly to continental Europe, their UK sales make up a rather small percentage.

And to continue selling to the UK they now need to have 2 VAT numbers:

1 VAT number including accounting for the UK.

1 VAT number including accounting for the rest of the world.

It might not make sense to go through the costs of maintaining a UK VAT number if the sales don't justify it.

 

Edited by Jens
  • Like 3
Link to comment
Share on other sites

On 18/01/2021 at 20:13, Oh How Original said:

Tbh, I don't think it'll kill RC.

The prices have been rising across the board since all this voting business started.

There's some RCs I have previously bought, that I just wouldn't now, because the price is ridiculous.

Losi 5ive-T for example.

Why would I spend £1,600 for an RC that was £1,100 before some people voted to leave.

It's not going to help the RC hobby, but I don't think it will kill it.

We can all still run what we already have, at the very least, if pricing goes insane.

Not sure I would class 17.5 million, As some people.

Jens is right, No company is gonna turn it's nose up to the 5th or 6th biggest economies, With one of the biggest disposable incomes in the world because of some forms, Just try and buy a bike of graphics card at the moment, RTX's of any kind from £500 to 1200 or more are out of stock everywhere, And go out of stock within seconds, Same with AMD.

There is a reason why this little country is always one of the first to get the latest technology, Sometimes first, Even before the yanks, Because we have a high living standard, And have been happily paying through the nose for stuff since before I can remember.

Not every price increase will be down to Brexit, A lot will come down to plain old greed and some companies just taking the michael, And just using Brexit as an excuse,  Horizon Hobby is not your friend or mate, If they or any other company feel they can use this situation to squeeze more out of us, They will, We just need to remember who the micky takers were.

Link to comment
Share on other sites

9 minutes ago, babylon said:

Not sure I would class 17.5 million, As some people.

Jens is right, No company is gonna turn it's nose up to the 5th or 6th biggest economies, With one of the biggest disposable incomes in the world because of some forms, Just try and buy a bike of graphics card at the moment, RTX's of any kind from £500 to 1200 or more are out of stock everywhere, And go out of stock within seconds, Same with AMD.

There is a reason why this little country is always one of the first to get the latest technology, Sometimes first, Even before the yanks, Because we have a high living standard, And have been happily paying through the nose for stuff since before I can remember.

Not every price increase will be down to Brexit, A lot will come down to plain old greed and some companies just taking the michael, And just using Brexit as an excuse,  Horizon Hobby is not your friend or mate, If they or any other company feel they can use this situation to squeeze more out of us, They will, We just need to remember who the micky takers were.

 

"some" is correct.

I am sure that would be many millions less now the people who perhaps weren't really sure what they were voting for have seen what is happening as a result.

I am not sure how you get to the point of it just being greed, it's greed on the part of our country/government.

That is down to Brexit, there weren't massive price hikes before Brexit.

I've never known any RC to jump up £500 overnight before.

Maybe you have, please share some examples?

Link to comment
Share on other sites

As we know, 17.5 million was more than half the voting public, So some is not correct.

 

And what is happening as a result, It's been 3 weeks, Give it a chance,  OK, Some shellfish are having some trouble getting through, And even the fisherman have said it has more to do with the technology than Brexit as such, And they voted for it, I'm not saying there aren't problems, Or will not be problems in the future, But it took us a good 6 months to a year to get ourselves in order after a house move, So this is gonna need more than 3 weeks.

And I'm not gonna listen to all the so called experts, The ones that said we would crash if we didn't join the Euro, The ones that said we would crash if we just voted to leave, The one that only six months ago said it was a disaster and unforgivable that we opted out of the EU Vaccine Joint Procurement Program, Look how that's going for them.

 

I really don't know how you can categorically say it's down to Brexit with nothing to back it up with, If it is like you say, Then you tell me were the 500 quid increase is if it's not greed or just the way of things, It's not VAT, Cos we always paid that, And out of the 28 EU nations at the time, 18 had the same or higher VAT than us, Just give me a rough idea off the top of your head were the 500 quid has gone, And I've seen know other price hikes, Before Christmas I could get a 75" Telly for less than a grand, I can get one today for less than 800 quid.

 

Our greedy Government, The ones that put more of our money into a Vaccine than any other country in EU or the world, The US was all Big Pharma money, Our greedy Government that said from the very start the Vaccine would be sold at cost price and not 20 quid a shot, That greedy Government. 

 

Well, Graphics cards for one, They have doubled in price, And you say over night, In 2016 Modelsport had the 5ive AVC listed at £999 with RRP of £1174,   Not stocking Losi in 2017,    In 2018 it was £1499 with RRP of 1689,   2019 we have the 5ive 2.0 at £1389 with RRP of £1649, And today, 2021 we have £1590 with a RRP of £1799, So today, The Losi 5ive 2.0 is £100  more than the 5ive AVC was back in 2018, And the RRP has only gone up 150 quid since 2019, Prices go up, And Prices go down.

Link to comment
Share on other sites

1 hour ago, mch87 said:

why does every conversation about brexit turn into people assuming those who voted for brexit are idiots who didn't know what they were voting for...

 

I previously had jobs that handled "funding" and "grants" from the "EU" and personally think that leaving was correct but I don't go round forcing my view on people who voted remain being idiots who didn't know what they were voting for.... NO everyone has their own right to vote for what they believe to be right, I know several of those who voted to remain who have since changed their mind so it works both ways...

 

R/C is a fun hobby which we are all lucky to be able to have in whatever capacity that may be, there are those who don't have that luxury... I hate that all this politics spreads like a horrid disease into places where the only thoughts should be about furthering enjoyment...

 

Please re-read what I wrote and then reply.

And bare in mind it wasn't me who started the thread.

Personally, I'd rather it just be against the rules to discuss politics and Covid on the forum all together, it'd be a better place.

I didn't vote, because either way, the people at the top really don't care about us, no matter what the outcome of the vote was, it was simply a public vote, to my knowledge, it didn't HAVE to happen, so they were going to leave either way in my opinion, it was just easier for them that more people voted leave.

Some have since admitted (some people I actually know, as well as widespread Internet postings and news reports) they weren't really sure, but heard how much we paid to the EU and voted leave.

Some thought it would lower taxes because of how much was paid to the EU.

THOSE are the ones who in my opinion are idiots, because they only looked at it from a single angle, they didn't research what they were actually voting for completely, if you don't know what you're doing, simply don't do it, I didn't know every detail, so that was another reason I didn't vote.

I hope that clears up what I said, since 

  • Like 3
Link to comment
Share on other sites

32 minutes ago, Guns said:

Wasnt graphics cards rising due to the mining of crypto currency?

 

Yes it was, plus it was before Brexit.

Like most of that chaps posts, they don't make sense and often don't answer your question :lol: 

He really doesn't see that even based on his own example above, the price is added after the Brexit vote.

It was right in the middle of 2016, there was some issues with Horizon/MS in 2017, then the 'new' model came out, with nothing really different and a big price increase.

Edited by Oh How Original
Link to comment
Share on other sites

17 minutes ago, Guns said:

Wasnt graphics cards rising due to the mining of crypto currency?

That, And other stuff, AMD problems are because of the TSMC 7 nm fab there on, They have TSMC making all there GPU's and CPU's, All the SOC's for the XBox series and Playstation 5, TSMC also make chips for Apple, Qualcomm and a host of others, Basically they have more work than they can handle, Nvidia use Samsung fabs which are not under the same demands, Probably why you see more Nvidia cards come up as opposed to absolutely zero AMD 6000 cards.

 Crypto isn't were it started, Bikes were like gold dust, And still are at the lower end because everyone was home and wanted to keep fit, The same with graphics cards, Everyone is at home and wanting to play games and call it work,  And now the Crypto price has gone up and just added to it all, But everyone at home and not being able to go out and spend is were I come back around to the disposable income, There is loads of it about at the moment, Think of all them £5000 rail season tickets that got cashed in.

Link to comment
Share on other sites

the g card problems mainly down to nvidia doing a paper launch with no stock then the mid cards ran out and with the scalpers charging 4x as much makes it worst insane to pay the prices they want at the minute :( same things happening with amd cpus now ie 5900x

 

On topic i cant see brexit killing RC its been through much worst over the years 

Link to comment
Share on other sites

29 minutes ago, Bajadre said:

the g card problems mainly down to nvidia doing a paper launch with no stock then the mid cards ran out and with the scalpers charging 4x as much makes it worst insane to pay the prices they want at the minute :( same things happening with amd cpus now ie 5900x

 

 

This is correct, nothing else. 

 

Not only did nVidia not have any stock on release, but also things like Bounce Alert let loose their bots scooping up cards to be sold on ebay for inflated prices. It's not rocket science. The same happens currently with the PS5 (haven't checked for the XBox). Smyths re-stock for PS5s sold out in seconds. At 3AM. 

 

6 hours ago, babylon said:

Nvidia use Samsung fabs which are not under the same demands, Probably why you see more Nvidia cards come up as opposed to absolutely zero AMD 6000 cards.

 

Except factually untrue, the current shortage (or rather the fact that nVidia can't get ahead of the demand) is because Samsung can't deliver wafers. I'd love to spend the time debunking all the half truths you fired off here, but i'm currently (literally) watching paint dry, which seems more productive. 

 

Just one example: yes. The UK is the 6th biggest economy in the world. No, that means absolutely nothing in the context you brought that up for. You also correlate GDP (that's where we are #6) with disposable income (where we rank behind the netherlands, belgium, norway etc on #15), which of course is nonsense. Same with standards of living. We rank behind Estonia on that one, and one spot in front of Lithuania (#19 and #20). 

 

The UK is indeed a rich country. But the median living standard isn't high, it's mediocre. It's not to say that there isn't good stuff here, like our healthcare etc - but telling yourself lies about being the  greatest country the world has ever seen is counter productive, it suggests that you're fine with the status quo. Which is, factually, mediocre at best for anyone who doesn't make six digits a year. I'd rather point out the discrepancies and try to make the UK what you're suggesting it already is (but factually isn't), even if i can't do much. It's still better than repeating populists talking points. 

 

No, brexit won't kill RC. Obviously not. It's a hobby, people aren't sensible when it comes to hobby (including me). If the X-Maxx 2.0 in a decade or so is going to be £1600, i'll probably still buy it - it'll just take a month longer to put the money aside. That said: to suggest that increased prices are purely due to companies being greedy is  nonsense. They are, surely - but the very fact remains that the 2016 £999 5ive would cost around 1150 at todays exchange rate. And that's with an already "stable" sterling, unlike at times where a pound was worth $1.10 (in 2020) - where you could basically translate the $ to £ 1:1. Which would lead to the £999 5ive costing £1350. And that's just due to the value of the pound alone, nothing else. 

 

 

Edited by m4inbrain
  • Like 1
Link to comment
Share on other sites

On 20/01/2021 at 22:38, Oh How Original said:

@Guns - see my point.

PS5 and newest Xbox are responsible for a rise in graphics cards... :lol: 

Not all the guys who were buying 10 and 20 of them at a time, silly you :P 

Hold up a minute Mr sarcastic, TSMC make the Ryzen, all the 6000 GPU,'s, All the PlayStation and Xbox SOC, AMD  book what they want produced months in advance, Along with everyone else, They can't just tell TSMC they want more GPU's and TSMC just flick a switch.,This means we have a shortage of GPU's, More demand cos people are at home building and buying computers, so the price go's up, Exactly for the same reason we have a shortage of PlayStation and XBox, and the price has gone up, So indirectly, Yes, The PlayStation and XBox are responsible.

And there is not a shortage because of scalping, There is scalping because there is a shortage, Thats why you won't make money scalping an XBox 360.

 

And actually, Samsung can deliver wafers, Thats the reason why Nvidia has signed a new contract with them, Its the reason why you still get a daily drip feed of cards at Scan and the like,  But absolutely nothing from AMD since launch, Samsung has capacity were TSMC has none, The RX6000 was a paper launch as there was no stock at all, The RTX was not a paper launch as there was stock, The reference card sold out quick on launch,But it was being restocked pretty regular ,You just had to be quick and beat a bot.

 Nothing I said there is factually untrue.

Link to comment
Share on other sites

I know an RC shop in NI which is now effectively a weird little state due to a border in the North sea. The guy who does allot of the ordering in and mailing out said the whole thing is a pain as selling into the UK mainland even though they are registered for VAT is a ton of extra paperwork. There's a direct cost to this to them and the customer.  The VAT thing is compounding it.

 

I don't understand why people aren't more up in arms. Boris claimed it would be a free trade deal. It's not, its nothing like one and the City got cut out of services. Failing to see how this of any benefit to anyone right now other than a treasury minister working out how many extra billions they'll get from tax payers paying additional tariffs on items they previously didn't pay anything on. He needs to go back to Brussels, cap in hand and sort this mess out.

Link to comment
Share on other sites

After reading the news recently it is indeed a bit weird about the tariffs and the free trade deal.

Products made in the EU are covered by the free trade deal.

When importing only VAT is to be paid.

Products not made in the EU are not covered by the free trade deal.

 

When it comes to our RC stuff, hardly anything is made in the EU.

Mostly made in China.

Then those things are imported to the EU and tariffs paid on them.

We order them from the EU.

When importing tariffs need to be paid again!

UK looks at the origin of the product.

And the origin defines if tariffs need to be paid.

 

To give an example:

 

RC car sold in China: £200 ( I will use £ only)

Imported by a German online shop. 16% VAT added, 5% tariff added. Sold online for £243.60 + shipping.

( I excluded margin for the shop to make it easier, 5% tariff is just a guess )

Ordered by someone in the UK.

Online shop sells to you net at £210 + shipping.

Either the online shop adds UK VAT & tariff itself (lots of paperwork) or lets the courier (DHL) do it.

At the end you pay at least 210 + 10.50 (Tariff) + 44.10 (VAT) = 264.60 + shipping.

( Assuming UK tariff is the same as EU )

That is already 20 more than before Brexit.

 

On top the couriers like UPS/DHL charge a customs handling fee if the online shop decides not to go through the paperwork themselves.

Here comes the daylight robbery. DHL & co charge a good premium for the handling the customs. Worse then Royal Mail or Parcel Force.

 

The problem is, that you pay now for EU tariff and UK tariff, because the product has been imported to the EU before.

Worldwide these double tariffs are avoided by holding the products in free ports until it reaches it final destination.

EU online shop don't do that. Their product has supposedly reached it's final destination.

 

For me it comes down to only being able to shop where this is handled automatically and already included in the actual purchase price.

Amazon, eBay's GSP, Aliexpress.

 

 

 

 

 

 

Link to comment
Share on other sites

1 hour ago, Jens said:

After reading the news recently it is indeed a bit weird about the tariffs and the free trade deal.

Products made in the EU are covered by the free trade deal.

When importing only VAT is to be paid.

Products not made in the EU are not covered by the free trade deal.

 

When it comes to our RC stuff, hardly anything is made in the EU.

Mostly made in China.

Then those things are imported to the EU and tariffs paid on them.

We order them from the EU.

When importing tariffs need to be paid again!

UK looks at the origin of the product.

And the origin defines if tariffs need to be paid.

 

To give an example:

 

RC car sold in China: £200 ( I will use £ only)

Imported by a German online shop. 16% VAT added, 5% tariff added. Sold online for £243.60 + shipping.

( I excluded margin for the shop to make it easier, 5% tariff is just a guess )

Ordered by someone in the UK.

Online shop sells to you net at £210 + shipping.

Either the online shop adds UK VAT & tariff itself (lots of paperwork) or lets the courier (DHL) do it.

At the end you pay at least 210 + 10.50 (Tariff) + 44.10 (VAT) = 264.60 + shipping.

( Assuming UK tariff is the same as EU )

That is already 20 more than before Brexit.

 

On top the couriers like UPS/DHL charge a customs handling fee if the online shop decides not to go through the paperwork themselves.

Here comes the daylight robbery. DHL & co charge a good premium for the handling the customs. Worse then Royal Mail or Parcel Force.

 

The problem is, that you pay now for EU tariff and UK tariff, because the product has been imported to the EU before.

Worldwide these double tariffs are avoided by holding the products in free ports until it reaches it final destination.

EU online shop don't do that. Their product has supposedly reached it's final destination.

 

For me it comes down to only being able to shop where this is handled automatically and already included in the actual purchase price.

Amazon, eBay's GSP, Aliexpress.

 

 

 

 

 

 

I see you mention Free Ports there, Is that were the Free Ports that Boris and Gove have been talking about come into this.

This is on the Government website.

 

Freeports bidding process opens for applications

Bidding process in England opens to establish at least seven new Freeports. The first are expected in 2021, as part of at least 10 across the whole of the UK.

Link to comment
Share on other sites

3 hours ago, babylon said:

I see you mention Free Ports there, Is that were the Free Ports that Boris and Gove have been talking about come into this.

This is on the Government website.

 

Freeports bidding process opens for applications

Bidding process in England opens to establish at least seven new Freeports. The first are expected in 2021, as part of at least 10 across the whole of the UK.

Free Ports are literally in every habour.

Even Rotterdam, Hamburg, etc. have areas with a "before customs" area.

Airports as well.

Products in those areas are not subject to VAT/Duty/Tariffs.

Think of duty free cigarettes in the airports.

 

However, what the government is talking about, are very large areas which are free ports.

In those large areas lots of containers can be stored. Even some trading can take place.

But once a product is destined for a country, it will cross the border out of the free port into the country.

Then it will cost money (VAT/Tariff/Duty).

 

It is also possible that a product is in a UK free port, but then will be shipped to Germany for sale there.

Advantage is, that tariff will only be paid in Germany and not in the UK.

 

UK will of course not collect any tariff.

But large ships will call the UK free ports. That's good business.

And hauliers will then forward the products to the destination (ie. Germany).

It can be via ship again, or it will "transit" through UK main land.

Transit means that a lorry will transport a sealed container from the free port on the road via Dover or Tunnel to the EU.

Once arrived in France EU tariff is due.

 

All very complicated.

And it's knowledge that I have collected over the years or from my daily news reading.

 

Disclaimer:  Any errors found may be kept by the finder 🙂 

 

 

Edited by Jens
  • Thanks 1
Link to comment
Share on other sites

Just to add something more.

"Free Ports" can literally be everywhere.

Even just a warehouse can be a free port.

Usually they are near some large transport hubs like harbours.

 

The main requirement is, that the area is closed up in a way that no unauthorized person can enter and that no product can leave without being noticed.

A product can only leave either in a sealed container to go to another area or with customs paid before leaving and entering the country.

 

That means basically that a free port is customs wise an international area surrounded by a national area.

 

And to go back to our Brexit matter:

It makes no more sense for us to do anymore online shopping in the EU, unless we are willing to pay significantly more.

Products must now either be stocked in the UK, in a free port or in the country of origin.

Anywhere else will be costly!

Sad...

 

 

Link to comment
Share on other sites

On 20/01/2021 at 22:38, Oh How Original said:

@Guns - see my point.

PS5 and newest Xbox are responsible for a rise in graphics cards... :lol: 

Not all the guys who were buying 10 and 20 of them at a time, silly you :P 

 

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
×
×
  • Create New...