Covenco are prepared for the Brexit changes
The new legislation from the UK / EU will change exports and imports from 31st December 2020.
Covenco have a very long history in international trade, shipping worldwide for 30 years. It will be business as usual for our teams and we will be supporting our international clients through the transition.
Some points to remember -
Buying from Covenco :
We will not be the Importer of Record (IOR), even if we are ‘delivering’ the item sold to the customer’s location in the EU, because we will not be able to reclaim the import VAT payable when the goods enter the EU.
Goods sold by Covenco will be sold under Incoterm DAP (Delivered At Place) – shipping on Covenco account or FCA (Free Carrier) – shipping on customer account. Under these terms we (the seller) arrange the export customs declaration and transportation but the buyer arranges the import customs declaration and is responsible for any import duty and VAT.
Please note - this is NOT an increase in price to our clients, just administratively different from what you may have experienced buying in the UK prior to Brexit. It will not increase the price to you.
Selling to Covenco :
All of the above applies in reverse. As an EU supplier to Covenco you do not want to become liable for the UK VAT on import of the goods, we advise you sell to us stating DAP or FCA terms.
Transport and Documentation :
We have been working with all the major couriers to understand any changes in their processes, and they are doing an excellent job in keeping UK businesses informed.
Covenco already held the appropriate License to ship Export Controlled (typically encrypted) products into Europe and the 7 'Friendlies' - the European license has been updated on 31st December to comply with the Brexit Legislation changes.
Please do not hesitate to contact your normal representative or ask for the Logistics team to understand more.
We look forward to continuing our excellent relationship with our hundreds of European customers, and making many new acquaintances.