Antiques, wine and chocolate

Brexit has made UK-EU trade difficult more complex for any business that trades between the UK and EU. Notably, companies that trade in food and agricultural items need to secure a host of supporting documentation, in addition to following ordinary customs procedures. 

But what about smaller companies that trade in niche or high-end goods? In many cases, smaller traders lack the specialist knowledge and network of contacts to navigate post-Brexit. Those specialist businesses need access to a specialized trade solution that adapts to their very specific trade requirements. 

When is an antique light fixture just an old lamp?

Shipping goods between the UK and EU now requires specialized codes and inputs, such as a valid EORI number and commodity codes.

Commodity codes are especially important if you want to secure tariff-free trade or preferential VAT rates. However, determining the correct code is not always via for non-specialists. 

As antiques dealer Adam Freeman told the Guardian, describing difficulties sourcing antiques from France to the UK, “part of the problem stemmed from the fact that sellers in France were not official exporters and would not necessarily know the age or the commodity code of a dusty old armchair or lamp which had turned up in a probate sale. Another challenge is VAT (antiques can be zero or 5% rated).”

In that case, neither buyer nor seller had the specialist knowledge or access to professional systems required to determine the correct codes.  In this case, putting a generic code for ’lighting’  or ‘furniture’ would lead to a higher VAT rate than the preferential rate for the specific antique items. Securing preferential import rates therefore became virtually impossible.

Bitter taste of bureaucracy 

The New York Times reports that independent British chocolate makers have not had a sweet time during the Easter sales period. Red tape meant that exports to EU markets were frequently subject to unexpected additional costs and delays. 

Alastair Gower provides a paradigmatic example. Gower told the New York Times that upon receiving a consignment of chocolate, the customer had to pay an additional $5 000 in duties on the $8 000 consignment because Gower had not filled out the import forms correctly.

In addition to unforeseen costs, there were serious delays. “We’d been told the product would arrive in France, so we put Calais as the point of entry. It went to Rotterdam, where it sat for six weeks,” Gower was quoted as saying.

Here we see two major consequences of failing to effectively manage the new import procedures: significant costs and serious delays. Those delays are especially problematic in the case of delicate perishable goods. 

Managing grape expectations 

The majority of wine imports into the UK come from Europe. These will now be subject to a raft of new paperwork.

Merchants have welcomed a postponement in the introduction of the new wine papers. However, importers will need to adapt in due time, or face the risk of penalties, delays or failing to get their goods to market altogether. 

Tailored Brexit solution for your industry

What’s so significant about artisan chocolate makers, antique dealers and wine merchants in economic terms? These are often smaller businesses with specialized knowledge of their own industries and a commitment to excellence. However, they lack access to the expertise and tools needed to manage customs, import VAT and shipping logistics.

re:TRADE, powered by VAT IT, is a holistic trade solution that will ensure you get your goods to your customers as quickly, efficiently and affordably as possible. Get in touch with a re:TRADE expert for a customized trade solution for your business.