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New Year New Way

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customs form from sew curvy
an example of the new electronic customs form which will accompany every parcel going outside of the UK

Well the good news is that the UK has a 'free trade deal' with the EU.  Hurray!  

From 1 January 2021, our Brexit transition period ends, and all countries in the European Union will be, as far as the UK is concerned, 'ROW' (rest of world).

This means that the way we post things to the EU will change - goods posted out of the UK to the EU will be treated the same as goods going anywhere else outside the EU - so America, Norway, Switzerland, Australia, etc.,

Luckily Sew Curvy has been trading with countries all over the world for the last 10 years so we know what to do now although there have also been changes that apply to everyone.  These are as follows:

1.  Goods to EU and ROW do not include VAT - this will not appear as a sum off your total as VAT is paid from our profits.  We do not add VAT to our prices because we are on a 'flat rate' scheme - honestly it's complicated and this will be reveiwed in March '21.

2. Parcels to EU and ROW will include detailed customs information and an electronic 'label' containing tarrif codes and value.  This is a compulsory change all over the world and is to do with taxes and security, not 'youknowwhat' (brexit).

3. Customers may have to pay customs charges when parcels arrive in their country.  This customs amount will be VAT or Sales Tax.  Some countries will have thresholds allowing for the private import of goods.  For instance, in the UK, our 'customs threshold' is £15 - this is in line with most EU countries.  In USA it is $200.  This means that you can import goods to this value without incurring VAT or import charges.

4. EU customers will not pay import duties, only VAT at the rate set by their country over any threshold. 

5. EU and ROW business customers will be able to claim any VAT back from their tax office as VAT will have been paid in the form of customs charges and is not included in the price of goods.

6. For the next month at least, all orders going outside the UK will be sent by tracked mail - this is so that I can keep an eye on things as we transition into this new situation.  (I know for instance that mail from UK to Netherlands has already been held up in customs from October! This was not supposed to happen until January!).

Overall, the free trade deal with EU is better than we in the UK were expecting.  It means that we will not have to pay tarrifs on goods coming in from the EU, which for all of our customers means minimal cost increases - I need to see if there are now going to be any 'processing fees' - this will become apparent over the next few months but will not affect any stock we currently hold.

I am releived that Sew Curvy can for the time being continue trading as we were.  Lets keep everything crossed that our small UK businesses continue to thrive!

 

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