Now, the UK and the EU have reached a trade cooperation agreement, which stipulates new trade terms from January 1, 2021. What impact will the terms have on the seller’s business? Amazon announced as follows:
A new customs border between the UK and the EU has been established. People and goods passing through the customs border of both sides may be subject to additional inspection. More details can be found on the UK government website or through the local government websites of EU countries.
Trade cooperation agreement between FBA and UK / EU
As announced in July 2020, Amazon has been unable to ship seller’s goods to the UK / EU border. Trans EU transshipment, cross-border fulfillment via EFN and cross-border returns between the UK and the EU have stopped.
In order to ensure the normal sales of sellers, Amazon suggests that sellers send their inventory to freight centers in the UK and the EU. If the seller plans to ship the goods into the UK / EU, the seller must ensure that the customs requirements for cross-border transportation are met to avoid delay.
Sellers can find details on the Amazon brexit help page.
Amazon reminds that the requirements for cross-border transportation include the following.
- Register VAT in the country where the seller stores the product. Please refer to Amazon’s special VAT education page for more information about sellers’ VAT obligations.
- Obtain eori number – if the seller uses FBA, it needs at least 2 eori numbers (if the seller imports products in the UK and EU at the same time, it needs 1 UK number and 1 EU number). If you are a MFN seller, you may only need one eori number (UK Seller is UK, EU seller is EU). The seller can contact logistics agent or tax consultant for more details.
- Determine the correct HS code for the seller’s goods and determine the tariff level applicable to the product. For more information, please visit gov.uk .
- Provide the country of origin (COO) information of the seller’s goods. Please refer to the official guide to determine the non preferential country of origin of the product.
- The seller needs to prepare various documents to comply with the product compliance, compliance identification and labeling requirements of the UK and EU (for example, marking your product with both CE and ukca). In addition, all necessary product compliance documents need to be collected.
- If required, the consent of the EU intellectual property owner is also required.
- Decide how to handle the customs declaration form and employ the customs broker in relevant cases.
- In order to benefit from zero tariff, products must comply with the specific rules of preferential origin stipulated in the trade and cooperation agreement signed by the EU and the UK. For further guidance on this, see gov.uk .
- If the seller transports goods between the UK and Northern Ireland (Ni), the latest HMRC guidelines can be found in the trade and cooperation agreement. Amazon recommends working with your carrier to check the requirements that apply to you and ensure compliance.