The UK is no longer part of the EU, which means that additional steps must be taken to deliver products. This may result in some deliveries being delayed and companies reviewing how they handle data and duties.
Warcradle Distribution has always sent your orders using the DDU (Delivered Duties Unpaid) method. The information below highlights some other considerations for EU customers purchasing from the UK.
Please note, the below is not just relevant to Warcradle Distribution, but could apply to many UK online retailers.
What is different now the UK has left the EU?
There are 2 major changes to the way the UK interacts with the EU when exporting goods post-Brexit, the data companies need to supply and the payment of VAT and duties.
- Exporters need to have an EORI number and supply HS codes, product value, product weight and product country of origin as a minimum on all shipments (in addition to the usual details).
- VAT and duty are now applied at the border as the goods enter the EU. This means that couriers have, in effect, needed to become customs brokers, paying the charges on behalf of the exporter/importer then recouping those funds later.
What types of import classifications are there?
Broadly there are two shipping classifications that can be used to send goods, they may have different names, but DDU and DDP are the most common. Some couriers offer both options, some only one of the two.
- DDU - Delivered Duties Unpaid. If you have goods sent via this method, the END CUSTOMER is responsible for all VAT, duty and local charges. In theory, you should not have been charged any VAT when you purchased the goods as you will need to pay it when they enter the country.
- DDP - Delivered Duties Paid. Via this method, the seller collects VAT at the percentage applicable to your delivery address, Germany 19%, Denmark 25% etc. Plus any applicable duties.
It is worth checking before you purchase with a company what type of delivery they are offering you. Warcradle Distribution has always, and will continue to send goods DDU as we do not collect VAT in the checkout.
What additional fees can I expect to pay?
Fees will depend on the shipping type and local tariffs:
- DDU - You will need to pay the import VAT, duties and local charges if applicable, the price you paid to the seller may not be the final amount needed to acquire the goods.
- DDP - The VAT and duty will have been collected at the point you paid for the items ready for the seller to reimburse the courier. You MAY still have a local handling charge as not all couriers deliver the “final mile”*.
It is possible you will still need to pay a duty depending on where the goods were manufactured. If you are ordering something that was manufactured outside of the EU or UK, duties may apply.
*The “final mile” is not literal, some couriers do not operate directly in a region so will hand your parcel to the local delivery service to get it to your door.
Why are the prices I see different when I sign in?
Our store is set to UK VAT (20%) by default. Until you check out, we do not know where you want the goods delivered. Once you sign in, our website will recognise your default address and update the price relevant to that address. For example: if your default address is in Germany, our site will apply 0% VAT.
Will shipping prices change for online retailers?
In short, possibly. Brexit has brought several challenges and modifications for couriers, which will have cost them money to implement. You may see price increases or additional surcharges added to shipping costs in the future.
Will shipping my parcel take longer?
The time to pack your parcel is the same as normal, sending off all the data to a courier can take some companies longer due to the amount there is and the checks involved. After a parcel leaves the warehouse, and is handed over to a courier, there are a number of new steps to go through at the border. Currently parcels are taking longer to reach their final destination, 3-5 days extra is not unusual and even the fastest carriers are seeing delays.
Warcradle Distribution has a fully automated data transfer system that has been verified by our courier partners as supplying all the information needed for a parcel to clear customs. We are currently seeing delays in final delivery but we hope this starts to ease as everyone becomes more familiar with the new processes.
There have been a lot of changes in the last few weeks, and the situation is ever evolving, we will keep this page up to date with any new developments that could affect delivery.