Will movement for your FBA be fulfilled or not? Brexit may have an impact on this!
As you may be aware of the current chances of a no deal Brexit, there is a chance it may disrupt the movement of goods from UK to the EU.
Of course this isn’t guaranteed, but it is likely as Amazon have been sending communications about this.
Amazon have said that they are committed to supporting all UK businesses selling into Europe and around the world. But as you may have heard, the British government have been very open about the chances of a possible “No Deal”.
European Fulfillment Network Sellers
The scheduled departure for UK leaving the EU with or without a deal is 29th March 2019. This change in the system could have a temporary impact on the movement of goods between the UK and other EU countries, so it’s better to be prepared of the outcome.
Amazon have reported that a no deal Brexit may lead to an impact on its EFN (European Fulfilment Network) for a temporary period and could prevent cross border fulfilment and inventory transfers.
This probability has now led to the UK government sending out a communication to local businesses with guidance if that outcome was to arise.
Click here for more info.
It has been recommended by Amazon to send inventory using its MCI programme. The (Multi-Country Inventory) programme lets you ship your FBA inventory to fulfilment centres in other countries across Europe. Amazon have recommended that this be done by 17th of March 2019. Something to consider is that by changing the marketplace where you send your inventory, it may also change the VAT requirements also. Click here for info.
The UK government has not advised on the duration of any potential disruption at the borders in a no deal Brexit, but has said for businesses to consider having at least 4 weeks of inventory coverage along with additional units to prevent running out of stock.
If you send inventory to the UK and EU countries separately, it may be worth using the restock inventory tool.
Previously HMRC had sent out a partnership pack to prepare for the changes that could take place between the UK and the EU. Within it there are details on the types of customs, excise, VAT and regulatory changes. Sellers are recommended to seek further advice from advisers.
VAT obligations related to local storage of inventory storage in the UK or EU will remain unchanged. If there is a temporary “no deal” Brexit, the UK government has advised of goods not being able to pass or cross between borders. This will include FBA Export orders for UK businesses-based inventory and mainland Europe based inventory coming to the UK.