With the United Kingdom having left the European Union, new customs rules have come into effect from 1 January 2022, also impacting shipping methods, procedures and thresholds (order value). Ports and other border locations will be required to control goods imported from the EU into the UK, including documentary and/or physical checks, depending on the type and value of the goods.

Import taxes (VAT) and duties are charged based on the goods type and import value, depending if they lie below or above the current Consignment Threshold of £135. For explanation purposes, we have broken down the information by orders valued below £135 and above £135. 

Orders below £135 (excl. VAT)

If the consignment value (order value) does not exceed £135 (approx. 152 EUR), VAT is collected at the point of sale, not at the point of importation. Acting as an Online Marketplace, this means Fy is responsible for collecting and accounting for the VAT. As it also aligns with the threshold for relief for customs duty, no duties will be charged on the consignment value (below £135).

Orders below the Consignment Threshold can be shipped under the DAP (Delivered At Place) Incoterms. Please note that you must attach 3 Commercial Invoices to your package (attach 2x copies to the outside of your parcel and place 1x copy inside). For more information on Commercial Invoices please see the article ‘Commercial Invoice’. 

Orders above £135 (excl. VAT)

If the consignment value (order value) exceeds £135 (approx. 152 EUR), import VAT and duties will apply. Orders (or shipments containing multiple orders) above the Consignment Threshold must be shipped under the DDP (Delivered Duty Paid) Incoterm rules. 

For products / sku exceeding the value, you will need to include DDP shipping costs into your wholesale price submitted to Fy upfront. 

In cases where you received multiple orders from one shopper, resulting in your consignment value exceeding the threshold, please contact designer-help@iamfy.co quoting your order number before shipping, so that the team can confirm additional costs with the customer enabling you to ship DAP. 

Duties 

For orders above the stated threshold, import duties will be applied depending on the type of imported goods. However, a Duties Tariff Relief exists for products manufactured in the EU that can claim country of origin (CoO) within the EU, which reduces the duties tariff to 0%. 

If you can claim Duties Tariff Relief, please ensure to be able to provide proof of CoO, either an electronic document or a physical document which must be attached to your parcel(s). The Relief will reduce your DDP Shipping costs as duties will not apply (see how to calculate duties & taxes).

For finding and defining the right commodity codes (type of goods) for imports into the UK, based on which duty and tax rates are defined, you can use the government’s ‘Trade Tariff Tool’.