Brexit: agreement or no deal
Oct 5, 2020
After the acceptance of the European Union withdrawal agreement, the UK has formally left the EU and entered into a transition period until 31 December 2020. At this stage it is still unknown, whether the Union and UK will come to an Agreement or whether a ,,No Deal,, situation will arise. As leading Logistics Service Provider for the Fashion industry, servicing a wide range of international Fashion houses, it is of essence to prepare ourselves for all scenarios. As such, Modexpress has explored all possible consequences with respect to customs controls and declarations, duty structure, intrastat reporting and others.
Despite the complexity of being prepared for the still unknown status, Modexpress has anticipated on the future circumstances by fine tuning its Bonded services. As AEO certified organisation, it is in the position to store products without the need to pay import duties or VAT for exports to the UK or other countries outside the EU. Needless to state, that this leads to improved profitability and cash flows.
Next to the above Modexpress has implemented, in cooperation with one of its partners, a World Ease program for simplification of customs procedures in the UK or other countries. By means of consolidating several shipments into one, customs clearance can be executed as a single unit, reducing documentation and clearance time.
Presently the Netherlands have programs into place for import VAT under postponed VAT accounting programs. Most likely a trade agreement between the UK and the EU will not contain such provision relating import VAT. This will make it even more attractive for Fashion Brands to relocate their logistics from the UK into the Netherlands, with Modexpress as their logical partner.
Brexit will have a serious effect on not just customs, but on the complete Supply Chain into the country. To ensure smooth processes it requires a Logistics Service Provider which is not only fully aware of all regulations but at the same time flexible and supportive. These elements are part of the DNA of Modexpress. We invite you to join us !