Post-Brexit - buying bike parts abroad . . (incl. Rose/DutchBikeParts)

General cycling advice ( NOT technical ! )
Psamathe
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Re: Post-Brexit - buying bike parts abroad . . (incl. Rose/DutchBikeParts)

Postby Psamathe » 14 Jan 2021, 11:19am

st599_uk wrote:
Jdsk wrote:I don't think that it has:
https://spacycles.co.uk

Screenshot 2021-01-14 at 10.59.35.png
Is "import duties" the correct term?

Jonathan
It depends. There's no import duty for UK products, but does a Spa bike have enough UK components to count as a UK product.

I don't understand import taxes but if there are too many non-UK components, those components would have been imported to UK and are thus being re-exported so I'd assume the import to UK duty would be reclaimed on re-export. That said, I assume SPA would be buying these components from a distributor and the distributor pays any import to UK duty and resells so maybe SPA cannot reclaim the import to UK duty and even if they could it probably becomes a bureaucratic nightmare.

Ian

st599_uk
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Joined: 4 Nov 2018, 8:59pm

Re: Post-Brexit - buying bike parts abroad . . (incl. Rose/DutchBikeParts)

Postby st599_uk » 14 Jan 2021, 11:29am

Psamathe wrote:
st599_uk wrote:
Jdsk wrote:I don't think that it has:
https://spacycles.co.uk

Screenshot 2021-01-14 at 10.59.35.png
Is "import duties" the correct term?

Jonathan
It depends. There's no import duty for UK products, but does a Spa bike have enough UK components to count as a UK product.

I don't understand import taxes but if there are too many non-UK components, those components would have been imported to UK and are thus being re-exported so I'd assume the import to UK duty would be reclaimed on re-export. That said, I assume SPA would be buying these components from a distributor and the distributor pays any import to UK duty and resells so maybe SPA cannot reclaim the import to UK duty and even if they could it probably becomes a bureaucratic nightmare.

Ian
It doesn't work like that I'm afraid.

See: https://publications.parliament.uk/pa/l ... /12908.htm

It has a box explaining rules of origin on import.
A novice learning...
“the dreamers of the day are dangerous men, for they may act their dreams with open eyes, to make it possible.”

Jdsk
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Joined: 5 Mar 2019, 5:42pm

Re: Post-Brexit - buying bike parts abroad . . (incl. Rose/DutchBikeParts)

Postby Jdsk » 14 Jan 2021, 11:32am

Psamathe wrote:
st599_uk wrote:
Jdsk wrote:I don't think that it has:
https://spacycles.co.uk

Is "import duties" the correct term?

It depends. There's no import duty for UK products, but does a Spa bike have enough UK components to count as a UK product.

I don't understand import taxes but if there are too many non-UK components, those components would have been imported to UK and are thus being re-exported so I'd assume the import to UK duty would be reclaimed on re-export. That said, I assume SPA would be buying these components from a distributor and the distributor pays any import to UK duty and resells so maybe SPA cannot reclaim the import to UK duty and even if they could it probably becomes a bureaucratic nightmare.

Thanks x2.

Jonathan

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RickH
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Re: Post-Brexit - buying bike parts abroad . . (incl. Rose/DutchBikeParts)

Postby RickH » 14 Jan 2021, 11:50am


st599_uk
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Re: Post-Brexit - buying bike parts abroad . . (incl. Rose/DutchBikeParts)

Postby st599_uk » 14 Jan 2021, 11:57am

The issue for Spa is likely that their bicycles whilst assembled in Britain use parts from major manufacturers like Shimano which are not British. You need to have a fairly large proportion of the item's value being produced in Britain to avoid import duty, plus of course VAT would be due on the imported price and the fees for whoever works out the dues and VAT that's due.
A novice learning...
“the dreamers of the day are dangerous men, for they may act their dreams with open eyes, to make it possible.”

Bmblbzzz
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Re: Post-Brexit - buying bike parts abroad . . (incl. Rose/DutchBikeParts)

Postby Bmblbzzz » 14 Jan 2021, 12:13pm

Regardless of whether or not there are duties, there is paperwork and, as a bike is over E150, from June Spa would have to collect VAT at the applicable rate for the destination state and register with that country's VAT office. There are also, as we see, delays in shipping, which might possibly lead to customer complaints they don't want to deal with. Easier on a customer website to say "import duties" as shorthand than explain it all (and get into argument with angry customers nitpicking the details).

st599_uk
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Re: Post-Brexit - buying bike parts abroad . . (incl. Rose/DutchBikeParts)

Postby st599_uk » 14 Jan 2021, 12:17pm

Bmblbzzz wrote:Regardless of whether or not there are duties, there is paperwork and, as a bike is over E150, from June Spa would have to collect VAT at the applicable rate for the destination state and register with that country's VAT office. There are also, as we see, delays in shipping, which might possibly lead to customer complaints they don't want to deal with. Easier on a customer website to say "import duties" as shorthand than explain it all (and get into argument with angry customers nitpicking the details).
If it's over 150euros, then it's VAT collected by the courier. But yes for components he'd have to register. And there is the paperwork issue that is needed to work out if a product is British or not.
A novice learning...
“the dreamers of the day are dangerous men, for they may act their dreams with open eyes, to make it possible.”

sun ra
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Post-Brexit - buying bike parts abroad . . (incl. Rose/DutchBikeParts)

Postby sun ra » 15 Jan 2021, 6:08am

Hope folk don’t mind my asking on this thread? I purchased a few cycling components from one of the online German stores in mid December. My bank account and the email confirmation received clearly show when the purchase was made. Unsurprisingly the parcel hasn’t yet arrived.

What can I do if the courier company try to add the extra charges that apply to purchases made after 1st January even though I purchased the item in December 2020? I realise I can refuse to pay and the item would then get sent back. When I last looked at guidelines on the government website any purchases made before 1st Jan would be exempt (as one would expect). I’m now worried the courier companies might be eager to take advantage and make a quick buck.

Hopefully I’m wrong and I won’t be receiving one of those letters from parcel force claiming I owe VAT.

Bonzo Banana
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Re: Post-Brexit - buying bike parts abroad . . (incl. Rose/DutchBikeParts)

Postby Bonzo Banana » 15 Jan 2021, 11:01pm

A summary of the new legislation here in regards the bicycle industry;

https://www.bicycleassociation.org.uk/n ... of-origin/

It will be interesting to see how this all works out, obviously the EU previously benefitted from a huge trade surplus with the UK and so many more of their products will be effected. The last significant process rule where typically you get a bike fully made in Asia but given final packing in Germany and a 'Made in Germany' sticker will now I assume get additional tariffs coming to the UK. Such companies now may as well bypass that process in Germany and simply ship the product directly from Asia to the UK and pay the tariffs even if that means it will no longer have that 'Made in Germany' sticker which was pretty meaningless anyway for that type of product.

So I assume bicycle products with a high non UK/EU content will be hit with tariffs but other products will purely be hit with sales tax but as is the case with most bicycle products they are mainly manufactured in Asia. In time we may get cheaper bicycle products in the UK if any Asian countries get favoured non tariff trading with the UK but such products cannot be re-exported to the EU without tariffs being paid.

UpWrong
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Re: Post-Brexit - buying bike parts abroad . . (incl. Rose/DutchBikeParts)

Postby UpWrong » 16 Jan 2021, 6:49am

That's a clear explanation. So rules of origin tariffs were comimg anyway, regardless of Brexit. The German recumbent firms Hase and HP Velotechnic will be clobbered by this because less than 55% of their bikes are made in Germany.

markjohnobrien
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Re: Post-Brexit - buying bike parts abroad . . (incl. Rose/DutchBikeParts)

Postby markjohnobrien » 16 Jan 2021, 9:20am

UpWrong wrote:That's a clear explanation. So rules of origin tariffs were comimg anyway, regardless of Brexit. The German recumbent firms Hase and HP Velotechnic will be clobbered by this because less than 55% of their bikes are made in Germany.



Agree: tariffs were coming from the EU anyway.

Jdsk
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Re: Post-Brexit - buying bike parts abroad . . (incl. Rose/DutchBikeParts)

Postby Jdsk » 16 Jan 2021, 9:22am

markjohnobrien wrote:
UpWrong wrote:That's a clear explanation. So rules of origin tariffs were comimg anyway, regardless of Brexit. The German recumbent firms Hase and HP Velotechnic will be clobbered by this because less than 55% of their bikes are made in Germany.

Agree: tariffs were coming from the EU anyway.

I'm lost: please can someone explain. How will consumers in Member States be affected by the changes?

Thanks

Jonathan