Before BREXIT, merchants were relatively easy to sell the UK and the mainland Europe across the borders. Both belonged to the EU, but now they are more complicated and expensive, and there are separate customs and taxes in customs and taxes in each region.
Through Brexit exceptions, Northern Ireland’s Full Fill (and merchants) can be shipped to Britain and the EU, which have few complications. This was a benefit for JOHN HEENAN’s Belfast Base 3PL distribution solution.
I met John many years ago. Before Brexit, the Beard brand sold products in Europe via his company. I reconnected for this episode. He explained the nuances of selling internationally in the UK and the EU and how to rationalize the process.
The overall audio of our conversation is embedded below. Transcript is edited for clarity and length.
Eric Band Holtz: Please briefly explain who you are.
John Henan: I own a full -fillment business in Belfast in Northern Ireland, called distribution solution or TDS. We have been open for 20 years. Before that, we were travel distribution services and distributed printed travel pamphlets. For many years, as the Internet grows, we have shifted to e -commerce.
The major advantage of being in Northern Ireland is For Brexit In the North Ireland rules, you can trade in both the UK and the EU without customs complications.
When the UK voted to leave the EU, the situation became complicated for North Ireland. As part of the UK, we are still maintaining the border with the Ireland Republic, which belongs to the EU.
Northern Ireland has stayed in the EU tariff alliance to avoid physical boundaries. In other words, it means that companies can operate freely in both markets. This is a great advantage because companies can trade seamlessly between two areas without dealing with tariffs or additional regulations. Companies that are not based in Northern Ireland require an individual fulfillment center in the UK and the EU.
Band Holtz: Did a new full -fillment company appear in Northern Ireland?
Henan: There were some small local operators. Large companies hesitated for political instability, including the collapse of the northern Ireland rally for nearly two years. Large companies tend to avoid places where political uncertainty exists. Nevertheless, some local entrepreneurs take that opportunity. Be Full -fillment company It’s not as easy to own a warehouse. The requirements for software and compliance are considerable.
In the UK, you need to register as a full -fillment house. This means compliance with various regulations. For example, the British government has inspected the fulfillment company to ensure added tax compliance.
In the EU, VAT is about 20 % and applies to most e -commerce sales. Before BREXIT, many sellers imported products from China and avoided VAT by sliding the product to the EU through local postal services. It created an unfair advantage, and local companies in Europe were dissatisfied. All full -file houses need to report to the authorities the details of customers, including the VAT registration number, to secure tax payments.
Band Holtz: How should American companies approach these issues when selling in Europe?
Henan: The process may look complicated, but it is easy to manage if it takes time to set up things correctly from the beginning. In cooperation with the accountant, we will make sure that everything is steadily well, such as acquiring an economic operator and obtaining an identification number (“EORI”) for importing, exports, and registration of VAT. When the setup is completed, it becomes relatively easy. Europeans love bureaucracy, so they need to accept them like a checklist. Here are the necessary steps.
The setup process can take several months. But once everything is in place, it will be a smooth sailing. Since it is necessary to regain the imported VAT, you cannot start shipping the product without a VAT number. For example, if you import 1,000 pounds and pay a £ 200 VAT, you can get the VAT back to sales.
Band Holtz: What kind of fulfillment cost and timeline can the brand expect when shipped from Northern Ireland?
Henan: There are many variables, but we offer a rough estimate. For picking and packing, I look at about $ 2 for each cargo. postage Depends on factors like Weight place. For example, in the UK, a small package costs about 3 to 4 pounds ($ 3.75- $ 5) for shipping, and usually arrives within 48 hours. Shipping to Europe is from £ 8 to 12 ($ 10 to $ 15). One of the advantages of being in Northern Ireland is that shipping to the Ireland Republic is much cheaper than the UK and Europe.
Band Holtz: Do you usually request a fulfilling service from American companies?
Henan: We claim by poundstering. However, it is not a problem because American clients are sold in European Sterling or Euro. This offset the need for a certain currency conversion. Nevertheless, a strong dollar may have the advantage of converting some American companies.
For example, the costs in Europe are significantly higher than the US labor costs. For example, it is about 50-100 % higher. According to the law, employees take a paid vacation for at least five and a half weeks a year. However, companies that sell in Europe can often lead a higher price to offset these costs. There are clients in the United States to purchase specific products, but the final price is often excluded after considering exchange rates, duty, and tax.
Band Holtz: How can people contact you?
Henan: Our website is THEDISTRIBUTIONSOLUTION.CO.UK。 You can contact you there. I am also on Linkedin。
