Importing & Brexit

[Tommikka]

Spin off from a specific discussion elsewhere:

https://airsoft-forums.uk/index.php?/topic/38867-anodised-bright-red-airsoft-rifle-rif-or-if/

Currently if you import gear then if it’s from outside of the EU then you are liable for import VAT/import duty, and also get stung for a handling charge by the carrier

There are allowances so if it’s low enough in value then you pay nothing 

If from the EU then currently we are part of the free trade zone and therefore as long as it’s tax paid in the exporting EU country then you pay no more 

With Brexit as we would leave the EU then we lose that 

https://www.gov.uk/guidance/vat-imports-acquisitions-and-purchases-from-abroad

As @Tackle noted in the other thread :



Today as a country we import from most of the world.  In the EU it’s free trade, so no import costs are charged, from elsewhere expect charges.

If appropriate businesses can bring in whatever, save on costs in bulk, pre-process imports, possibly offset costs in their vat and ultimately put the costs to the buyer.  If it’s viable then import if not then don’t do it

As individuals unless the item is exempt or below a treshold then we pay import vat/duty.  Depending on the type of item the rates vary 

Worst case scenario after brexit either EU sources become the same as the US, Hong Kong etc.  We can still import as individuals and it remains a decision on what we are willing to pay for what is out there - and if it’s going to cost us more to import from Europe then it’s more viable for UK companies to offer the item

EU companies may be able to offer tax free export to the UK, which means we only pay UK import VAT, which means no difference to the importing individual 

Or some form of trade agreement is made, and we have something inbetween

On another tack - remember duty free booze cruises?

There was no duty to be paid (no tax) but the unwitting British buyer went onto a ferry paying over the odds for known brands with P&O ferries making more profits, instead of all that cheap funny looking foreign rubbish

Duty free & booze cruises ended when we could buy ‘unlimited personal use’ tax paid.

To keep the booze cruise customer British booze warehouses sprung up around the ports

 

[Rogerborg]

I'll worry about it if and when it ever happens.  Ask Norway, Iceland, Liechtenstein and Turkey why you don't have to be in the EU to have tariff-free trade.

Mind you, our current "negotiating" strategy seems to be to start from a position of total surrender and then back down from there, so I'm not getting my hopes up.

Something to bear in mind is that all of the stuff coming from "Europe" is really coming from the Orient.  There's no reason why UK prices can't be as low as Taiwangun or Gunfire, except for the overheads of running a business in Rip Off Britain.  Once we're thrown into inevitable penury as Remonaners are confidently predicting, we should become a leaner economy too, right?

 

[jcheeseright]

I'll worry about it if and when it ever happens.  Ask Norway, Iceland, Liechtenstein and Turkey why you don't have to be in the EU to have tariff-free trade.

Mind you, our current "negotiating" strategy seems to be to start from a position of total surrender and then back down from there, so I'm not getting my hopes up.

Something to bear in mind is that all of the stuff coming from "Europe" is really coming from the Orient.  There's no reason why UK prices can't be as low as Taiwangun or Gunfire, except for the overheads of running a business in Rip Off Britain.  Once we're thrown into inevitable penury as Remonaners are confidently predicting, we should become a leaner economy too, right?

The difference there of course being that those countries do two things our government is unwilling to do;

1.  Pay the EU for access to the single market.

2.  Accept free movement of people. 

Without those things, we will not get tariff free access.  

As for 'if and when it happens', look at how much your £GBP gets you now, look at how much it got you on the 25th June 2016.  There's a significant difference there and that's just from the threat of losing access to the single market.  We're still in enjoying all the perks of membership and growth forecasts are down, living standards are down, GDP is down... 

 

[Tackle]

Mind you, our current "negotiating" strategy seems to be to start from a position of total surrender and then back down from there, so I'm not getting my hopes up.

Yeah wtf is that all about, our so called "negotiating team" appear to be gutless, I thought the whole point was taking power back from Brussels.

 

[Guyver1]

Can't help but think perhaps UK voters (I am one) should have thought this whole Brexit thing through a little more before deciding to :

"take power back from Europe"

"get £350 million a year back"

"Britain is full"

and all the other propaganda that the Boris Nigel and the "brexiteeers" threw at us before the referendum.

The words "made our bed , now we have to lie in it" leap to mind.

 

[Rogerborg]

As for 'if and when it happens', look at how much your £GBP gets you now, look at how much it got you on the 25th June 2016.

I'm a producer and an exporter.  My costs have come down, I'm more competitive now.

You're welcome.

 

[jcheeseright]

I think you've missed the point that your costs have come down but your buying power has gone down exactly in proportion.  Having £100 that's worth $130 is not as good as £100 that's worth $156

 

[RR01]

We were going to see a revaluation of £sterling whether we voted in or out, as the UK economy was over-valued as against the EU and USA anyway.  The only reason £sterling hasn't increased in value against other currencies is because we are still running at ridiculously low interest rates.  If interest rates rise then there will be more investment in the UK and the value of £sterling will rise again.  Even just pre the Referendum £sterling was less the 50% of it's best value against the US$.  I remember getting nearly $4/£1 at one stage.

Whilst everyone thinks that the economy will tank once we leave, they forget that food prices in the EU are held artificially high and that will change once we do not have to bow down to the gauliters of the Fourth Reich in Brussels.  Everyone then should be better off.  And Guyver1, we will retain way more than £350M a year by not having to pay anything to the thieves running the EU.  I think the claim was that the NHS could get £350M a week more once we left the EU.

For anyone under 45yo you have no idea what it is like to live in a country where you are in full charge of your own affairs.  Since we joined the Common Market everything has been subject to the whim of the other members, most of whom do not like the UK and membership devastated many of the traditional industries in the country.  Just ask anyone in a former fishing industry town what they think of the EU.

And as for paying to leave, I suspect any MP who votes to allow us to pay the sums being currently quoted can kiss their seat fairwell at the next election.

 

[Sitting Duck]

A few years back - 2013/2014 the £ to Euro was £1 to €1:17 when I started to buy from GunFire

today it is £1 to €1:13

29/12/2008 £1 to €1:02 though only a blip

stuff fluctuates - if you like to speculate buy Bitcoin

January this year the € was having its ar$e kicked againstr the dollar

the strong dollar isn't helping either

getting back original question....

IF we go to WTO then stuff from Poland is exported VAT free so no Polish 23% VAT

once it arrives it may be subject to a tariff....

If it comes under the:

"toys games & sports requisites..." = around 1.6%

or

"arms & ammunition" (unlikely) = around 2.8%

Then you add the 20% UK VAT onto this

basically unless you get a higher tariff no real change but the duty is sitting in UK than Poland

Don't fret over the 38% meat tariff stories - just buy live animals or pay only aprox 3% tariff & zero VAT

tbh very little will change, yes stuff could become more a bit expensive & some stuff a little bit cheaper

Difference is where the duty may reside under WTO

Nobody really knows but think there will be some compromise in the end

 

[ak2m4]

Still early days yet fellas, a lot of armchair economists are predicting all sorts of things.   It's uncharted ground so everyone be cool

 

[Rogerborg]

We were going to see a revaluation of £sterling whether we voted in or out, as the UK economy was over-valued as against the EU and USA anyway.

Bingo.  Sterling was hugely over-valued given our parlous balance of trade and fragile service based economy.  The correction was long overdue and very welcome to those of us who make things.  Join us, it's great.

 

[Lozart]

Bingo.  Sterling was hugely over-valued given our parlous balance of trade and fragile service based economy.  The correction was long overdue and very welcome to those of us who make things.  Join us, it's great.

I work in industrial automation. Manufacturing is definitely up but whether or not that puts the GDP in a better state or not is another matter.

 

[Guest]

It was £350M a week, not year

 

[jcheeseright]

It was £350M a week, not year

Neither number is anywhere near the truth! 

None of it is going to the NHS either.

 

[Guest]

Neither number is anywhere near the truth! 

None of it is going to the NHS either.

Not wrong bud, the whole thing was a scam that I didn’t fall for :-(

 

[Fumps]

Don't really care what facts & figures people get from what websites or media sites, the following is what I am dealing with day to day in my job, I don't pretend to be an expert economist or anything I just comment on what I know for sure and what are being discussed in meetings & inter company groups that I am a part of. 

I am a buyer with a £1.8 million budget  & pretty much all the things I buy for my company has risen sharply since the Brexit vote. ie: a rubber gasket seal that I buy in bulk has risen from 98p to £3.20 this is a seal that our 24/7 factory would grind to a halt if we ran out of. mechanical parts for certain machines we use has gone up 5% and we have received letters to tell us in the next year to 18 months will rise a further 15%. Filters and consumables are set to rise by up to 40%. And raw chemicals are set to rise too, forcing our company to reconsider its product range price which will definitely effect the building industry and the cost of building houses and commercial buildings, I know our competitors in the UK are experiencing the same price increases so this looks like it will be across the board.

My employer cant raise my budget to cover these price hikes due to the weakness of the pound so the dreaded term of streamlining has been mentioned in meetings that I have attended. I have to say that manufacturing is up at the moment but the profit margins we are seeing as a major UK manufacturer is much lower than hoped and with more price increases planned it looks pretty poor to say the least.

I know at top management level the cost of a major relocation to mainland Europe has been costed and is being seriously considered which would put over 2000 people out of work and 4 Uk factories will shut, this will have a knock on effect with smaller firms that rely on us as their biggest contract's who would be either forced to downsize or close all together. This isn't opinion by the way, There is a few guys I work with who voted for Brexit and was very vocal when the result came out are now very worried about the impact of what this all means to their jobs and future of our industry.

 Its a pretty bleak time for me personally as my other half has built a very good career in Financial services and her company is also looking to relocate. She is by far the highest earner in our house, earning over double my income so if the company she works for leaves and she decides to stay in the UK we would be financially crippled & our plans for the future would have to be scrapped. So we also may consider a relocation in the future.

Maybe because I'm looking down an abyss and being pessimistic I honestly cant see how we as a country will get through this whilst retaining out status in the world. I know for a fact that the UK may be downgraded to a "Third country status" which basically puts us on the "Shady list" when it comes to international credit which is extremely bad. And I find that very worrying when it comes to future investment in the UK.

I know some of you will read this and take it with a pinch of salt, that's fine I'm not trying to convince anyone or change their opinions, but I am writing what I know  for sure and what I am seeing day to day which just seems to be getting worse than I'd ever hoped it would be. I wish it was better news to be honest. 

 

[Tackle]

Good luck Gav, hope it all works out for you guys.

 

[Rogerborg]

We're still in the single market, and Sterling hasn't plummeted by nearly as much as those rises.

GBR -> Euro was 1.30562 the night before the referendum.

Today it's 1.13763.

I make that a 12.87% drop, not 20%, 40%, or 300%.

So I'd have to conclude that you're getting gouged by profiteers.  I'm sure they'd all tell you that they're getting gouged too, but someone is quids (or Euros, or Yuan) in.  That's the nature of a competitive economy - winners and losers, and nobody is out to do anyone any favours.

If this sounds harsh or non-understanding, I've been in three companies to date that have crashed and burned, and nearly lost my house last time round.  I do sympathise, and hope it works out well for both you and the missus.

But the brutal reality is that job security or a particular standard of living aren't human rights, and that change is an opportunity for the lucky, the agile and the ruthless.  We can either try and command the tide to stay out, or we can enjoy the surfing.

And if we're very, very lucky, maybe one day soon we'll be able to buy taxpayer subsidised, union built cars from a resurrected British Leyland. 

 

[Fumps]

Your right mate.

Our economy is being weakened and other companies & countries are profiteering from that (Very blatantly in most cases). We have hardly any manufacturing left in the UK so we import. That's our weakness and its really biting us on the arse.

If people think for a second that to dismantle a 2.2 trillion pound economy, a killing would be made & the moves are already being made. If I was a competitor to the UK and I was ruthless I'd do the same. Its cold hard capitalism and although it kind of annoys me I don't blame them. That's why it seems like such dark times, the tide seems to be turning against us.

The big money made here isn't benefiting the people who live here, its kept offshore and the profits keep stacking up elsewhere while our assets become too expensive for us normal people to afford.  Now we need to draw on things like welfare systems, NHS etc the help just isn't there. Its a bad state of affairs 

 

[commanderpegasus420]

Yes it will. The eu leaders are acting like spoilt kids trying to spite us right now its entirely possible we end up with high import export charges if the divorce doesnt go well and divorces never really go well....

But Look at it this way. If we buy things in britain then the money goes towards keeping that business alive and ultimately keeps the hobby going and in future will be able to provide things at better prices and better services.

Buying abroad while cheaper is not going to support the shops or the hobby here and will only act to undermine british industry and business.

With the invention of internet shopping came the death of the high street. Now were leaving eu we should see a return of small businesses here again but if they arent supported they will fail.