Brexit Update - October 2019

16 October, 2019

Image of United Kingdom bunting in front of a blurred background of blue sky and grass

Asendia UK (inc. wnDirect) have been continuing to prepare for the possibility of a ‘No-Deal Brexit’ happening on 31st October, with a dedicated Project Team working closely with all areas of the business to ensure that we can continue to provide our customers with a robust service.

What are we doing to prepare?

Currently our team is working towards a worst-case scenario of a No-Deal situation. This means ensuring the following: -

  • Our operation and networks are ready to cope with a Customs border between the UK and EU
  • That our retailers can provide all the information and data required for either Postal or Commercial Customs Clearance into the EU
  • Our IT systems are prepared to collect the necessary Duties & Taxes required when importing into the EU

We are working with a number of experienced partners in both the United Kingdom and the European Union to provide you with the confidence that your parcels will continue to flow through our network as smoothly as possible.

A robust parcel network

We will be injecting parcels into the E.U. through multiple gateways to provide regional Customs clearance capability.In addition, we will have contingency options in place to re-route parcels into Europe in the event that significant delays are encountered at the ports.

Correct Data procedures

To ensure parcels flow through Customs, we are advising our retailers that we need full parcel-level and recipient information in order to satisfy the Customs requirements to export out of origin country and import into the EU or vice versa. This includes:

  • Check if goods you sell require an export license
  • Product classification codes (also referred to as HS or HTS codes)
  • Description of the goods
  • Cost of goods
  • A valid address
  • European mobile number
  • Email address is essential

Offering a choice of clearance options

We can provide a range of options for payment of Duties and Taxes incurred on import, ranging from:

  • Shipper paid / Retailer paid – where we pick up the bill for parcels when they clear Customs and then we charge this back to retailers
  • Consumer paid – this is where the recipient of the parcel pays for any Duties and Taxes incurred on import. There are two ways of doing this and this varies by service and the partner we use for clearance in the destination
    • For some lanes we hold the parcels in the UK and ask the consumer to pay before we ship the parcel forward
    • For other lanes (and the majority of postal flows) the parcels are shipped and then the partner collects the money directly from the consumer
  • Hybrid (part shipper / part consumer paid) – this is where we pick up the bill for all VAT incurred (where the parcel value is below 150EUR) and charge this back to retailers. Where the parcel value is above 150EUR we will hold it in the UK and request payment from the consumer

Changes in service

As you may have seen in the news, delays are anticipated at the border between the U.K. and the E.U.; however, with a tested process and contingency routes we are not expecting our parcels to experience significant issues. There may be some changes to transit times, depending on the routing.