Due to the impact caused by the epidemic, energy and supply chain crisis in this year, the UK domestic comprehensive price increases, and people’s cost of living increased sharply. Inflation in the UK has broken a 40-year record. Coupled with the encounter with the UK strike wave, E-commerce companies are keeping a close eye on the UK market in real-time as if they were on thin ice,
It is reported that there are 3 new policy changes in the second half of the UK, which sellers must understand clearly.
New changes in the UK market
1. The new customs declaration system will start working on September 30
In September 2022, British Customs will launch a new customs declaration system Customs Declaration Service (CDS for short), the original British Customs CHIEF declaration system gradually decommissioned and will be fully decommissioned in March 2023.
The new CDS system is a key part of the UK government’s plans for a fully digital border, developed after years of consultation with the border industry, all imports and exports will be declared using a single system.
Sellers who choose Import VAT deferral (Import VAT) can check the clearance data in the CDS system, and when sellers choose PVA declaration, they can go through this account to download the incoming VAT clearance deferral data for tax declaration, thus replacing the original C88 document and tax bill details.
2. UKCA certification will be fully operational on January 1, 2023
UKCA marking, a mandatory product marking, is a product mark used to replace the CE marking after Brexit to prove that a product meets the requirements of UK regulations. UKCA certification covers most goods that previously required CE marking.
UKCA marking already started using from January 1, 2021, but most products with CE marking can still be used until December 31, 2022. The UK government has determined that from January 1, 2023, UKCA marking will be fully operational, and if you continue to use the previous CE marking, there may be problems with inconsistent certification and the inability to clear customs.
3. New VAT late filing/payment rules will be implemented from January 1, 2023
The UK government has released a summary of the new policy, the HMRC will amend the VAT penalty and interest rules from January 2023, meaning that the previous default surcharge (late filing fee) will be replaced by the new rules.
The reform refines the penalties for late filing, for which the HMRC will adopt a points system. For each missed filing deadline, businesses will receive a late filing penalty point, and once the penalty threshold is exceeded, they will receive a £200 penalty. Each subsequent late filing will incur an additional £200 penalty and will be subject to a compliance observation period of the appropriate duration. Previous penalty points can only be cleared if there are no late filings during the compliance observation period and all taxes have been paid.
Solution for Ecommerce
With the epidemic, the inflation and the extreme heat, media research shows that UK consumers plan to cut their Christmas budgets in half, with the focus shifting to Black Friday bargains.
The majority of British consumers say they will spend less than £500 this Christmas. 30% of consumers surveyed have already started their holiday shopping, and 80% said they are ready to “look for bargains” during the Black Friday sales. 75% of those planning to purchase products during Black Friday said online shopping will be the main consumer channel.
E-commerce sellers should adjust your stocking plans based on the information and can put the focus on the Black Friday promotions.
For product selection, you can analyze last year’s consumer trends and then launch your own key products based on the actual situation.
For example, due to this summer’s extreme heat in Europe, the sales of fans in the United Kingdom rose 641%, and sales of air conditioning equipment and sunshades rose respectively. Inflatable pools, mosquito repellent, and sprinkler all had good market.
In the face of the UK’s relatively dismal e-commerce market this year, you can be prepared for both.
On the one hand, you can clear out poorly selling items, and on the other hand, you can make good stocking plans to cope with various upcoming promotions.
For products with poor sales, you can apply for destruction or return to a warehouse in time. Goods of low value can be destroyed directly, and products of higher value can be returned to Empire Express UK overseas warehouse for distribution and processing, or sold to UK overseas warehouse for processing at a low price to quickly recover funds while clearing inventory.
What 3PL company like Ship2eu can do for you
Double-clearance and tax included
Double customs clearance means that a logistics company or import /export company has strong strength in customs clearance and can carry out customs clearance in various ports in China. General statement: Double customs clearance is the package export, including foreign imports, tax-included.
Ship2eu will handle the customs clearance and ensure the normal export of the customs of the destination country, so that you don’t need to spend time to deal with the clearance.
You can just focus on marketing, we take care of all issues for you.
Oversea warehouse
If you are worried about the subsequent peak season logistics congestion and delays, you can ship your goods to Ship2eu overseas warehouse in advance via ocean freight. This not only can save the cost of the first trip, and do not worry about logistics delays, do not need to clear customs again.
Ship2eu overseas warehouse can help customers to ship directly from overseas warehouses and arrive at the whole territory of the UK within 3-5 days. Ship2eu’s overseas warehouse and e-commerce platform work together to protect the UK market in the year’s second half.
