al_yrpal wrote:The majority of what JD Sports sells is imported from Asia so its odd that they were formerly importing it here and sending it to the EU. I wonder how the import tax regimes differ?
Al
Here and the EU were the same. Now they're not. There's now extra customs checks for import duties, VAT and EU single market compliance. These checks are due to Theresa May's red lines.
In addition, many shipments are combined in to 1 lorry, each shipment needs the correct paperwork.. Through no fault of your own, your shipment can be returned as someone else's paper work was incorrect.
A novice learning... “the dreamers of the day are dangerous men, for they may act their dreams with open eyes, to make it possible.”
al_yrpal wrote:Its not surprising really. Our exporters are now dealing with a protectionist bloc. Al
If so isn't that curious al?
I seem to remember Boris telling us on christmas eve, to the whiff of sprouts, that he'd negotiated a deal where there were no non tariff barriers to trade - and unless I misunderstood that meant there were no tariff barriers either.
So which is the case?
Are there barriers to trade both ways?
Or was Boris lying/opened the Christmas sherry early?
Last edited by Sweep on 11 Feb 2021, 3:08pm, edited 1 time in total.
al_yrpal wrote:The majority of what JD Sports sells is imported from Asia so its odd that they were formerly importing it here and sending it to the EU. I wonder how the import tax regimes differ?
Al
It's to do with rules of origin. There is, under the agreement, free trade in goods between UK and EU for goods "substantially made" in either of those places. For anything made elsewhere: China, Vietnam, USA, Brazil... it will be subject to WTO tariffs when going from UK to EU or vice versa. This is the problem with bikes and bike parts: the vast majority are made in the Far East (China, Taiwan, Malaysia, Japan) and so it's virtually impossible to reach the 55% of product by value that's required to send a "UK" bike such as Genesis or Whyte to EU, or an "EU" bike such as Cube or Orbea to UK, without incurring the tariff (which I think is 14% on bikes and slightly less on parts).
PH wrote:If it's worth it for UK retailers, they'll do the same.
Yes, the point is that many exporters are saying that it won't be "worth it". So they'll lose business. People will lose jobs. The take from taxes will drop. There'll be less money for public services.
Jonathan
Rohan will be sending things abroad in different ways according to where it's going. For instance, they might sell one item a year to Malawi; dispatch it from UK warehouse. They might sell millions of dollars worth to the USA; open up an American warehouse to serve that market. They will probably up to now have served a large market in France, Germany etc from a UK warehouse, and will face the choice of opening a warehouse on the continent, with associated costs but less paperwork, or sending things from UK, with no extra property costs but bureaucracy. Either way, their costs are increased. The same is true, of course, for say Arcterys selling in UK, but with the difference that UK is a smaller proportion of EU than EU is of UK.
Sweep wrote:Or was Boris lying/opened the Christmas sherry early?
I think the tired and emotional words from Johnson of greater truth were the ones where he said '**** business'
And yes, it is the rules of origin which cause problems for most of this. Goods manufactured outside the UK & EU are mostly not covered as tariff free when moved between the UK and EU under the agreed deal, and it's the all the red tape involved with such matters that are a significant burden in terms of non tariff barriers.
Of course it does not matter if goods are designed in the UK or EU, thus this particularly hits small entrepreneurial businesses, clothes designers who design something innovative and get it manufactured elsewhere. Obviously this is a larger loss to UK cases who have lost 5/6ths of their tariff free market and not 1/6th.
The contents of this post, unless otherwise stated, are opinions of the author and may actually be complete codswallop
How would we distribute goods from the Far East (eg Shimano parts) if we were primarily concerned with minimising carbon / methane emissions? And surely that should now be our top priority. Having them travel first to the UK and then onward to non-UK destinations doesn't, on the face of it, look optimal.
Rail freight to as close as possible. EV for final delivery charged from renewable sources. Minimal handling/ relays/ delays/ inspections/ packing and unpacking.
Rail freight to as close as possible. EV for final delivery charged from renewable sources. Minimal handling/ relays/ delays/ inspections/ packing and unpacking.
Jonathan
But would you try to miss out crossings of the Channel by having Far Eastern products land at a port on the coast of mainland Europe if that is where they are going to be bought, and at a UK port if they are destined for the UK market? I suspect (rather than know) that JD Sports will cut carbon emissions by having a hub on the northern European mainland.
Rail freight to as close as possible. EV for final delivery charged from renewable sources. Minimal handling/ relays/ delays/ inspections/ pacany, king and unpacking.
Jonathan
Very admirable, but given the "where can I get it cheapest?" nature of many, I suspect that will also apply to distribution method.
Rail freight to as close as possible. EV for final delivery charged from renewable sources. Minimal handling/ relays/ delays/ inspections/ pacany, king and unpacking.
Jonathan
Very admirable, but given the "where can I get it cheapest?" nature of many, I suspect that will also apply to distribution method.
Isn't it time we considered the environmental impact of how our goods get to us, rather than just saving a couple of quid?
Rail freight to as close as possible. EV for final delivery charged from renewable sources. Minimal handling/ relays/ delays/ inspections/ pacany, king and unpacking.
Jonathan
Very admirable, but given the "where can I get it cheapest?" nature of many, I suspect that will also apply to distribution method.
Isn't it time we considered the environmental impact of how our goods get to us, rather than just saving a couple of quid?
Of course, but you rarely see it mentioned even on these pages where people are probably more aware than most.
simonhill wrote: Very admirable, but given the "where can I get it cheapest?" nature of many, I suspect that will also apply to distribution method.
Isn't it time we considered the environmental impact of how our goods get to us, rather than just saving a couple of quid?
Of course, but you rarely see it mentioned even on these pages where people are probably more aware than most.
That is the curious thing. I looked at the title of the thread and thought that our first consideration with goods distribution ought to be improving things from a carbon / methane emissions perspective, but none of us seemed to have even thought of it.
borisface wrote: I have now stopped and will not buy anything from the UK as it's too much hassle and uncertain with customs duties, tariffs, VAT and shipping issues. These are not merely teething problems but structural.
Several EU retailers have found ways to continue serving the UK without any hassle to the consumer. If it's worth it for UK retailers, they'll do the same. It is structural and a large part of the issue is that the structure was put into place at the last moment and for many it's still unclear, the structure isn't going to radically change anytime soon, but the understanding will.
As an example, I've just looked on the Rohan website, they say
Delivery We are currently unable to ship to EU countries and therefore cannot offer the service you would normally expect from Rohan due to new regulations around taxes and duties. We want to make sure that when you order Rohan products from us you know what you will be expected to pay for the product, the new duty and handling charges. Currently this is not clear and we are finding out more information on this. Once we have more clarity over this we will send you an email to confirm we are shipping to EU countries again and have confidence that you will experience the high levels of customer service we strive to offer our customers.
Uncertainty and looking for clarity. They export all over the world, so EU exports are not going to be any different once they have a thorough understanding of the structure.
Of course you may be right but most people and businesses will not bother to wait for UK business to have a better understanding of the export structures and simply buy from within the EU - where there is currently certainty which will continue. Once lost, business can be very difficult to get back. Europe does not owe the UK a living.
