Uk import duty shocker!!

Anything goes, and mine's a Guinness.
Richard Simpson Mark II
Posts: 3519
Joined: Tue May 09, 2017 9:03 pm
Has thanked: 1414 times
Been thanked: 1669 times

Re: Uk import duty shocker!!

Post by Richard Simpson Mark II »

Oh well...thinking about it, Pirelli owns Metzeler, and is in turn owned by some Chinese outfit so I suppose it's inevitable.

I've some experience of Chinese car tyres, and they are cheap for a reason!

This is from Consumer Reports in America on car tyres

"Aside from the performance lows, if value is a high priority, consider that the Pegasus cost about half as much as a top-scoring tire, the Michelin LTX M/S2. But keep in mind that the Michelin will last almost three times longer. Factor in the cost of buying two additional sets of tires, plus mounting and balancing, and you could save hundreds of dollars, not to mention get a better all-weather performing tire, if you choose the Michelin."

My experience would support that
User avatar
92kk k100lt 193214
Posts: 2332
Joined: Tue Jan 08, 2013 10:32 pm
Location: Ireland Cork
Has thanked: 51 times
Been thanked: 155 times

Re: Uk import duty shocker!!

Post by 92kk k100lt 193214 »

Its fascinating to read this thread.

I live in Ireland and vividly remember the pre EEC/EU times that meant paying duty and tax and clearance fees on anything imported from UK, US or any place you care to name.

Eventually harmonisation came about so that inter EU transactions became seamless. It made no difference if your order came from inside your country or another EU country. Many big companies seeking economic efficiency consolidated their entire EU operations into single places like Amsterdam. But if you continued to buy from outside EU then all this duty, VAT, custom clearance fee etc that is new to many UK people still applied and still applies, eg if I buy from US I have these charges exactly as mentioned in this thread. There has been no change in this. The same goes for inter EU mobile roaming, SEPA bank payments, motor vehicle insurance, healthcare etc etc etc. I am in construction and harmonisation of standards made it easy to source product and components in other countries and still meet Building Regulations. This had huge financial benefits for all.

EU has not been victimising anyone here. The exact same rules apply unchanged and there is zero change for us buying from outside EU. Duty, VAT and clearance fee are levied exactly as before. Except, if post Brexit I buy from UK then I am now levied duty, VAT and clearance fees.

But, and this a big but, the UK supplier is supposed to charge me the VAT EXCLUSIVE price for export so that I pay one VAT charge. In our case it's 21% VAT but to balance I do not pay 20% UK VAT so no real difference. I must still pay the duty for UK selling into EU and a clearance fee so that's an increase in costs. UK companies on small scale transactions do not charge us net of VAT, that's an issue for the UK company. But, in the same manner, EU companies selling to UK are also supposed to change to selling to UK nett of VAT. Do they? Not so far. For the millions of small transactions there is zero commercial sense in continuing these transactions at all. I purchase parts from Motorworks or the like pre Brexit they invoice me nett of VAT because I am registered for VAT and inter EU transactions between VAT registered parties do not accrue VAT. This is a cash flow advantage for traders too, they do not have to fund the VAT. Post Brexit, I am not so sure and that is a matter for the UK government and not for EU. That VAT does not go to EU and never did but to the UK exchequer as before, so one can guess its not going to change.

The UK could of course decide to eliminate duty on items imported from EU, that is not happening because that money, also as before, goes direct to HMRC and not the EU, but there remains the VAT and clearance fee issue.

There is another bigger issue. Many non EU products come into EU and are cleared through EU customs etc, not through UK but other countries such as through Amsterdam, Rotterdam etc. Think the giant container ships from US, China etc that are not just cars, but mobile phones, computers, printers, electronic components, toys, clothing, accessories, . To get to the UK these goods must come back out of the EU..........only to face a second tranche of custom charges, documentation, clearance fees etc to get into the UK.

In construction there is much regulation, calibration and certification of components, systems and products to EU standards. In certifying buildings it is a requirement to ascertain that materials and components have the relevant 'Agrement Certificates' etc etc. Nothing at all has changed here. But, unless the calibration company in the UK has EU certification, it can no longer certify anything inside EU. So, lots of these companies have moved operations to inside EU. Cue Volvo buying DAF a long time ago, that's the reason for that acquisition. Same as Nissan, Honda setting up in UK, the move to build cars inside EU eliminated their exposure to the dreaded duty. My 1987 Nissan Bluebird was Japanese built, my 1990 Bluebird came from the UK plant. Most UK insurers, as an example, have set up their EU operations in Dublin. They need to continue to trade inside the EU.

If UK is to continue to sell components to countries inside EU as before the end user must still use components carrying CE mark. No changes here. So the UK companies must manufacture to these standards, no change here either, but no longer have any input into how these standards are developed and amended. There is no victimisation of the UK here, Chinese, US and other non EU companies companies selling into EU must manufacture to EU standards to obtain their CE markings and are doing it for years. For that reason your Honda, Kia or Samsung has a European specification- to meet EU standards. Compulsory ABS, the angle from your eyes to the instrument panel and many more items are regulated.

By comparison Ireland is small compared to the UK. But it is recognised here that the gain for us remaining in EU is far greater than leaving it despite some increases in costs after Brexit, due to the smooth transactions that can exist in our EU trading.

Since Brexit, Brittany Ferries alone for example has gone from a single seasonal weekly sailing [Pont Aven to those who know it] to France to year round sailings, 3 per week, plus 2 sailings weekly to Spain. This increase started immediately after the Brexit vote and they also increased the ship sizes. Stena recently altered a Dublin-Holyhead route to Dublin-Cherbourg- none of the truckers have the time to process documents to get into UK and out again a few hours later. DFDS have opened a daily sailing from Ireland to Dunkerque. Dublin direct to Rotterdam is another route recently opened. None of this surprised us over here, this is freight driven. [Edit 29th January: DFDS have today changed the ferries on their route to increase capacity....it only opened on 2nd January]

Its a little like looking out at the snow on a clear winter's day, from inside the window basking in the heat from the solar gain and then deciding to go outside because its so warm. Except its not.
1992 K100LT June 2010 110,000 miles
1984 K100RT July 2013 36,000 miles, 90,000
1983 K100RS Nov 2018 29,000 miles, 58,600 miles
1996 K1100LT Oct 2020 37,990 miles, 48,990 miles
1984 K100 Sprint March 2023 58,000 miles, 62,000 miles
Réné Artois
Posts: 26
Joined: Wed Feb 10, 2021 1:52 pm
Location: Burgundy, France
Has thanked: 3 times
Been thanked: 22 times

Re: Uk import duty shocker!!

Post by Réné Artois »

until 01/01/21 I ordered 80% of parts and supplies for our company from the uk ( the units I'm running were built in the uk so much of it is pretty specific) As of 01/01/21 I am forbidden by the director from buying parts or supplies from the uk due to the extra time and costs involved. We are a small firm so no big deal for the uk in terms of global revenu, ( though may well damage some of the smaller companies I dealt with) but I can't help but wonder just how many other companies are making the same decision, extrapolated to the whole of europe?
User avatar
Cone
Posts: 1204
Joined: Sun Jul 10, 2016 6:25 pm
Has thanked: 156 times
Been thanked: 252 times

Re: Uk import duty shocker!!

Post by Cone »

Suddenly 24mx is not so competitive and is having to offer 15% off to try to mitigate the 20% vat being added
Richard Simpson Mark II
Posts: 3519
Joined: Tue May 09, 2017 9:03 pm
Has thanked: 1414 times
Been thanked: 1669 times

Re: Uk import duty shocker!!

Post by Richard Simpson Mark II »

My experience was that whatever I wanted was never in stock, and they'd just send whatever was in the bin next to it.
daveuprite
Posts: 4790
Joined: Fri Dec 28, 2012 10:47 pm
Location: Limousin France
Has thanked: 2452 times
Been thanked: 3293 times

Re: Uk import duty shocker!!

Post by daveuprite »

Cone wrote: Thu Feb 18, 2021 1:30 pm Suddenly 24mx is not so competitive and is having to offer 15% off to try to mitigate the 20% vat being added

You never truly know what the real price of anything is on 24MX! They are in a constant state of sale, reduction, one-day discount codes etc etc. You can buy something one day and have it offered to you for 30 euros less the next day! I still like the site though, and if you time your shopping well (e.g. when they offer 3 air filters for 10 euros) you can save a fair bit. They do suck me in I admit.

I always laugh at myself when I'm scratching around at 90 euros trying to find something else I need worth another 10 to get the free postage. What a mug. :lol:
hotbulb
Posts: 776
Joined: Thu May 05, 2011 2:55 pm
Has thanked: 89 times
Been thanked: 28 times

Re: Uk import duty shocker!!

Post by hotbulb »

But now we all have blue passports.... or is it red?? So everything is apparently great.
User avatar
Cone
Posts: 1204
Joined: Sun Jul 10, 2016 6:25 pm
Has thanked: 156 times
Been thanked: 252 times

Re: Uk import duty shocker!!

Post by Cone »

hotbulb wrote: Thu Feb 18, 2021 2:55 pm But now we all have blue passports.... or is it red?? So everything is apparently great.
Personally love my new blue passport. Pure class
Spike941
Posts: 1215
Joined: Wed Jan 08, 2014 8:36 pm
Location: Cotswolds
Has thanked: 304 times
Been thanked: 344 times

Re: Uk import duty shocker!!

Post by Spike941 »

Cone wrote: Thu Feb 18, 2021 4:12 pm
hotbulb wrote: Thu Feb 18, 2021 2:55 pm But now we all have blue passports.... or is it red?? So everything is apparently great.
Personally love my new blue passport. Pure class
Now funny you should say that. I love my red one, and not only because it matches the colour of my eyes when I disembark from the Santander ferry.
dave h
Posts: 691
Joined: Tue Jul 12, 2016 4:49 pm
Has thanked: 322 times
Been thanked: 375 times

Re: Uk import duty shocker!!

Post by dave h »



dave.
Post Reply

Return to “THE PUB”