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| BREXIT - what it means for small manufacturers |
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| coppice:
--- Quote from: fcb on January 04, 2021, 02:34:52 pm --- --- Quote from: themadhippy on January 04, 2021, 02:24:32 pm ---Its not just company's out of the uk that have stopped selling to the uk --- Quote ---At Brooks England, we continue to produce each leather saddle in our West Midlands factory in more or less the same manner as we have for over 150 years. However, upon their completion, since some time these saddles are shipped first to our logistics centre in Italy and from there to Cyclists around the world. Due to this, the ongoing changes in the Brexit situation have made it necessary to temporarily suspend all new orders to the UK at this time. --- End quote --- https://www.brooksengland.com/en_uk/uk-shipping-notice --- End quote --- That's nuts. So a company that trades on it's very Englishness (although looks like it's owned by an Italian firm now) and manufactures in the England, can't sell it's products in England (albeit temporaily). I struggle to see why many of these companies (that undoubtedly trade with non-EU customers) haven't got a grip on this. --- End quote --- Shipping is cheap, and customs barriers manageable, so most companies centralise their logistics. They typically assume the world will forever run smoothly, even though it obviously doesn't. Even the biggest component vendors tend to ship from only 2 or 3 logistics centres around the world. They often move parts from one of their factories to a logistics centre the other side of the world, and then shipping them back to a customer's factory in the same town as their own factory. If we could only have higher shipping costs, or more customs barriers, maybe we could stamp out this insanity. :) |
| Zero999:
--- Quote from: coppice on January 04, 2021, 02:48:44 pm --- --- Quote from: fcb on January 04, 2021, 02:34:52 pm --- --- Quote from: themadhippy on January 04, 2021, 02:24:32 pm ---Its not just company's out of the uk that have stopped selling to the uk --- Quote ---At Brooks England, we continue to produce each leather saddle in our West Midlands factory in more or less the same manner as we have for over 150 years. However, upon their completion, since some time these saddles are shipped first to our logistics centre in Italy and from there to Cyclists around the world. Due to this, the ongoing changes in the Brexit situation have made it necessary to temporarily suspend all new orders to the UK at this time. --- End quote --- https://www.brooksengland.com/en_uk/uk-shipping-notice --- End quote --- That's nuts. So a company that trades on it's very Englishness (although looks like it's owned by an Italian firm now) and manufactures in the England, can't sell it's products in England (albeit temporaily). I struggle to see why many of these companies (that undoubtedly trade with non-EU customers) haven't got a grip on this. --- End quote --- Shipping is cheap, and customs barriers manageable, so most companies centralise their logistics. They typically assume the world will forever run smoothly, even though it obviously doesn't. Even the biggest component vendors tend to ship from only 2 or 3 logistics centres around the world. They often move parts from one of their factories to a logistics centre the other side of the world, and then shipping them back to a customer's factory in the same town as their own factory. If we could only have higher shipping costs, or more customs barriers, maybe we could stamp out this insanity. :) --- End quote --- Great. We've discovered one good thing about Brexit: if discourages UK companies from unnecessarily shiping things to Europe and back, it will help to cut CO2 emissions. |
| tszaboo:
--- Quote from: mikeselectricstuff on January 04, 2021, 02:00:55 pm --- --- Quote from: fcb on January 04, 2021, 01:50:53 pm ---"EU firms refuse UK deliveries over Brexit tax changes" https://www.bbc.co.uk/news/business-55530721 --- End quote --- I doubt this will be more than a temporary thing for any EU company that does signiifcant UK business as they won't want to lose business. And for smaller businesses, I'm sure we will see reshippers (legit or otherwise) filling in the gap --- End quote --- Not necessarily. I found a perfect subcontractor for an assembly step, and I had to look for alternatives because they were in the UK. I am also looking for alternatives for the UK sourced specialty components in our products. Even if it would be just filling out an extra paper, UK companies are already loosing business. Because why would you choose a company in the UK if someone else can do it here? GBP was already an inconvenience. |
| fcb:
https://www.fkgb.co.uk/insights-and-facts/do-foreign-companies-need-to-register-for-uk-vat/ If you want to sell into the UK then YOU HAVE TO REGISTER FOR UK VAT. Oh boy. This is going to screw-up alot of small traders, and if this is the first you're hearing of this, then it'll take 4-6 weeks (at least knowing HMRC) to do this - and there is a fee apparently. Certainly don't remember .gov.uk shouting about this one. Be fun if the EU set's the local VAT threshold to zero for UK companies wanting to export. |O |O |O Any examples of countries making you register for VAT/purchase tax before you can sell to them. Bueller? Bueller? Bueller?... |
| bd139:
Yeah that was well known for anyone who did any research for at least 2 years. This never made it into the press because it wasn't on the agenda. |
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