Brexit created unique compliance requirements for your goods flow
Demand for fashion items comes and goes. Sometimes you need the items in the UK, other times they are held here and then exported to another distribution centre in the EU.
In recent years, the topic of Brexit has been unavoidable. Where a brand could move goods throughout the UK and EU without too many headaches, there is now a customs element to it that cannot be ignored.
Obviously, that has come with a learning curve. For example, one misconception we have seen with our fashion clients is importing samples. When you claim an item as a sample to HMRC, it must be consumed or destroyed after use and have no commercial value. It cannot finish its purpose as a sample and then be put in a clearance sale. Technically, you are selling an item that has not been released into free circulation.
Another relevant characteristic to customs is the processing of returns. Some of our clients exporting returned goods were finding that they were paying duty again on the return. That is three lots of duty when you consider the import duty on the other side, which may or may not have been reclaimed.
In cases like these, where the products are held in the UK then exported into the EU, you don’t want to overpay on duties, but you also don’t want to be locked into a complicated procedure which will delay you moving your goods – domestically or internationally.
