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Welcome to the ILG Brexit Hub. Find out how the new trade deal affects your deliveries and fulfilment. Check this page for regular updates, information and advice.
Since the Brexit transition our Partner Carriers have continued to deal with unprecedented volumes whilst trying to maintain services to all European Destinations. There have been challenges along the way, but I am confident that the volumes are starting to ease, and we should hopefully see an improvement on lead times to the EU albeit under a customs pending remit. I hope that any challenges you have faced have been rectified and I would happily welcome feedback around what is now working for you but more importantly what challenges remain daily.
Throughout February we have committed to speaking with our carriers every day to ensure we remain on top of any service issues and disruption so we can act if needs be. Thankfully, the vast majority of these meetings have been short, but we have today been advised by UPS that they will continue to relax service commitments to key destinations into Europe.
UPS have now extended their +1 day Standard peak relax for deliveries in certain countries (Italy, United Kingdom, Belgium, Ireland, Germany), until Easter Sunday 4th April for Domestic and Standard road shipments.
To allow the necessary time to clear current backlogs, UPS have announced they will continue to relax the delivery time commitments from the UK to the following countries until further notice, for both Standard and Express shipments:
We apologise for the obvious disruption this will cause to you and your clients and appreciate your understanding as this situation is beyond the control of ILG. If this is due to have an impact on your shipping please do not hesitate to contact me or your Customer Relationship Manager so we can look at alternatives for you.
Further to our previous update on the Brexit situation, please see below the latest information:
More broadly, our teams are now seeing some significant challenges in the movement of goods between the UK and Europe as a direct consequence of the changes brought about by Brexit. The wider impacts on the industry are creating an incredibly fluid situation and we cannot rule out other service suspensions by our carriage providers imposed at short notice. Should this be the case, we will keep you informed via email and provide as much prior warning as possible.
Our teams are working tirelessly to keep your shipments moving, but we are dealing with a significant increase in queries which is impacting our response times and we are attempting to resolve queries with an associated deadline as a priority.
ILG remains committed to helping our customers mitigate the impact of Brexit, but we and our carriers are now seeing a particularly challenging situation regarding shipping to the EU, especially on a DAP basis. Our teams are dealing with a significantly higher number of queries across the business, which is affecting our response times and causing us to prioritise our responses carefully.
We ask our customers to urgently review the impact of these challenges, which are a direct consequence of Brexit.
Please see the following specific updates:
On a DAP basis, duty and taxes are the responsibility of the receiver. They will be contacted by the courier and required to pay any duty/tax prior to the shipment being delivered.
All DAP shipments are subject to the below customs clearance fees:
The receiver is then responsible for paying the duty and import VAT to the carrier before delivery can take place.
It has recently come to light that each carrier levies a disbursement fee in addition to the duty and tax. This disbursement fee is charged due to the carriers pre-paying the duty and tax payable and acts as an administration fee. This is an extra cost which the receiver is required to pay in addition to the outstanding duty and tax. Since 1st January 2021, we have seen many receivers refuse these charges on shipments sent with DAP terms.
We have set out here the relevant disbursement charges per country to give you an idea of what the receiver is being asked to pay upon import. Carriers also charge VAT on disbursement fees.
Please note that the application of duty and tax on a DAP service is a direct transaction between the receiver and the carrier. As such, in the instance that the receiver disagrees with the charge being levied, the onus is on the receiver to dispute the charges locally. If this situation does arise, ILG will do all it can to assist.
On a DDP basis, duty and taxes are the responsibility of the seller. For DDP shipments, duty is paid in advance by our carriers, billed to ILG and then passed back to you.
The charges for shipments sent from the UK to EU on a DDP basis are below:
1. The Export Customs Clearance Fee as with DDU shipments:
2.The DDP accessorial fee listed below:
3. The duty and tax amount.
4. An ILG arrangement fee, which is set at 3% with a minimum charge of £5.00 per invoice and up to a maximum charge of £250.00 per invoice.
It is worth noting that, should you decide to send on a DDP basis, the disbursement fee alluded to earlier is not applicable. However, you would be charged a DDP administration fee as you have opted to prepay the customs charges.
Unless instructed otherwise, ILG will send all shipments on a DAP basis.
If you are unsure about any of the above, please tell us as soon as possible.
We are receiving daily updates from our partner carriers and will notify our customers of any potential changes.
If you have any questions, please reach out to any member of the ILG team or contact us at brexit@ilguk.com
Keep on top of all your must-do Brexit tasks with the ILG Brexit Checklist. Comply with the new regulations and check for updates as requirements change.
Read our Carrier Price List for a guide to additional disbursement fees charged by carriers for DAP deliveries to the EU from 01.01.21.
Watch our webinar video for essential advice on mitigating the risk of delays and financial loss. Get expert guidance from our panel of specialists in supply chain, VAT and customs.
The UK and EU have negotiated a new trade deal which changes how goods are imported or exported to the EU. New regulations apply from the end of the Brexit transition period on 1st January 2021. ILG helps you minimise disruption and additional costs with updates on the latest regulations and requirements.
Contact ILG if you have any Brexit-related delivery or fulfilment queries. Email us at brexit@ilguk.com