On 1 January 2021, the free movement of people and goods and services between the UK and the EU ended.
From the day the referendum result was announced, Rapid has been preparing to minimise the disruption felt by our customers. These include decisions relating to investments in product ranges, stock inventory and longer-term supply contracts. We have considered the impact of potential changes to tariffs and customs borders on our costs, administrative workload and also the effect of increased volatility of exchange rates.
Activities that Rapid have taken to minimise disruption include:
‘Incoterms’ stands for ‘International Commercial Terms’. First published in 1936, they are a set of 11 rules defining who is responsible for what during international transactions. The two Incoterms rules that are most relevant to Rapid customers in a post-Brexit trading environment are Delivered at Place and Delivered Duty Paid.
Rapid may negotiate the use of this incoterm with a customer if it is requested. The main difference between DDP & DAP is VAT and Duty are pre-paid by the customer or Rapid in the order transaction.
Under the Delivered Duty Paid (DDP) Incoterm rules, the seller assumes all responsibilities and costs for delivering the goods to the named place of destination. The seller must pay both export and import formalities, fees, duties and taxes.
The seller is not obligated to insure the goods for pre-carriage or main carriage.
The buyer is free of any risk or cost until the goods are unloaded from the vehicle at the named place of destination, usually the buyer’s place of business.
DDP is the only Incoterms rule that places responsibility for import clearance and payment of taxes and/or import duty on the seller.
These last requirements can be problematic for the seller. In countries with complex or bureaucratic import clearance procedures, a seller with local knowledge may prefer to take on these responsibilities.
Ensuring standard delivery times to our customers remains our top priority. In working closely with our suppliers we are confident that any disruption is kept to a minimum. Click here for the most up-to-date information on delivery times.
Rapid has joined the UK Trader Scheme (UKTS) which helps ensure businesses don’t pay tariffs on the movement of goods into Northern Ireland from Great Britain where those goods remain in the UK’s customs territory.
Rapid can self-declare goods, not at risk of entering the EU so consumer orders are not subject to EU duty tariffs.
We currently ship to Northern Ireland customers with UK VAT applied, with a waiver for duty applied by UK mail on our behalf. Rapid will be taking on this responsibility from March, but there is no meaningful impact on you.
Rapid will review the goods exported to NI and will declare goods for use within NI and goods which has the potential for entering the EU. This may affect B2B customers in NI as this will mean they will have to own the customs declarations, ie that the products are intended for NI, not the Eu.
This whole section will be updated in due course.
Our logistics provider carries out customs declarations on the customer's behalf using the commodity codes, qty’s, prices and country of origin.
We ship to EU consumers on DAP incoterms without UK VAT applied. The customer is therefore responsible for the country’s VAT and/or any Duty applicable. Our logistics provider carries out customs declarations on the customer’s behalf using the commodity codes, quantities, prices and country of origin (COO).
If the purchase order is less than EUR 22, no VAT or Duty is applied. This value is expected to increase to EUR 150 from 1 July 2021.
If the Country of Origin is the UK or an EU member country, there will be no Duty to be paid, but VAT may still be applicable.
If the Country of Origin is non-EU, there may be Duty to pay, but it will be confirmed based on the country’s specific trade deal with the specific Country of Origin.
Currently, the logistics provider will request payment from the customer when the product arrives in the country’s customs. If not paid immediately it will be either destroyed or returned to the sender. We are investigating an option for pre-paying.
We ship to EU consumers on DAP incoterms without UK VAT applied. The customer is therefore responsible for the country’s VAT and/or any Duty applicable. Our logistics provider carries out customs declarations on the customer's behalf using the commodity codes, quantities, prices and country of origin (COO).
The customer may have a valid EORI number (Economic Operators Registration and Identification) which enables them to be a recognised importer. They will need to share this number with their appointed customs broker, or logistics provider. This will enable the customs declarations for VAT and DUTY to be completed on their behalf.
If the purchase order is less than EUR 22, no VAT or Duty is applied. This value is expected to increase to EUR 150 from 1 July 2021.
If the Country of Origin is the UK or an EU member country, there will be no Duty to be paid, but VAT may still be applicable.
If the Country of Origin is non-EU, there may be Duty to pay, but it will be confirmed based on the country’s specific trade deal with the specific Country of Origin.
As part of our preparation for Brexit, our stock provision is higher than it has ever been. For any product shipped from the EU, our website has the most up-to-date information on lead times. We continue to work closely with our carriers to minimise any disruption for orders made within the UK that are shipped from the EU.