Brexit – do I have to pay more for my shipment to or from the UK?
With Brexit looming, many are wondering whether the UK’s exit from the EU will affect the cost of moving goods to and from the UK. In our Brexit News Series V, we show you what the major transport service providers have to say about it.
For the new year, we have put together a Brexit FAQ, which explains succinctly what you need to bear in mind after the UK leaves the EU.
The United Kingdom left the European Union on 31 January 2020 and is now officially a third country to the EU. However, a transition period until 31 December 2020 applies.
During the transition period, there is no impact on taxation and customs.
For the period as of January 1st, 2021 applies (subject to further development):
UK’s departure will have consequences on logistics flows from January 1st, 2021 onwards. All stakeholders must prepare for them.
The big three integrators, FedEx, UPS and DHL, have different pricing measures in place to cover increased operating costs from the re-introduction of customs clearance for shipments once the UK’s Brexit transition period ends on December 31, 2020.
The pricing measures come in the form of higher rates (FedEx), a special fee (UPS) and a surcharge (DHL Express), which will all apply from January 2021 onwards. However, it is still unclear how the end of the transition period will impact on transit times for shipments to and from the UK.
- FedEx will be increasing transportation rates for shipments from UK to EU, and EU to UK to reflect their investments and the incremental cost of clearing shipments.
- UPS, will implement a UK Border Fee, effective January 1,2021, on all shipments (excluding letters and documents) exported and imported between European Union member states and Great Britain (England, Scotland and Wales), as well as shipments between Northern Ireland and Great Britain to cover the incremental transportation and handling costs due to network adjustments. It does not cover any additional brokerage services,” it said.
- DHL Express announced a special surcharge on dutiable shipments between the UK and the European Union as of January 1, 2021 due to significant additional operational cost by the company. According to the company, the intention is that this fee will be set at €0.25 per kg with a minimum charged amount of €5.00 per shipment. This fee may be adjusted, should circumstances change significantly.
- DPDgroup said it will not introduce a new ‘Brexit’ surcharge but will cover higher costs in a different way, such as charging for the customs clearance handling like the company does for any cross-border shipment between customs countries.