Back in January, the UK entered a Brexit transition period which will last until December 31, 2020, under the present withdrawal agreement. The UK is expected to depart the European Single Market and the EU Customs Union as of January 1, 2021. Although negotiations are continuing, beginning on January 1, 2021, there’s anticipated to be a customs boundary set up between the UK and EU. At that time, there’s expected to be a direct impact on companies operating across the UK and EU border.
As a consequence of Brexit, Amazon has announced it will make changes to a number of its programs involving earnings that cross the UK-EU customs boundary. Please be aware that the information on this site comes from Amazon, and Amazon can change any of its programs at any time, with or without notice.
With the end of the year quickly approaching, here are a few key Amazon FBA deadlines to be aware of to help you take action to prepare for the changes Amazon is likely because of Brexit.
Essential Amazon FBA Brexit Dates
Saturday, November 14:
Last week, Amazon inventory removal requests for cross-border stock ceased. This means that eliminating inventory from UK fulfillment centers to EU addresses and out of EU fulfillment centers to UK addresses ceased. Amazon will process any elimination orders made before this date until December 31, 2020. Amazon will continue to take local removal requests as usual (i.e., within the UK or within the EU area ).
Friday, 18 December:
Amazon will stop Pan-European FBA stock transfers between the United Kingdom and the EU. From that point forward, you’ll have to send stock to fulfillment centers in the UK and the EU so as to keep your stock levels. Amazon will continue to utilize Pan-European FBA inventory already put in the EU before 18 December to meet EU orders and Pan-European FBA stock in the UK will continue to meet UK orders. Amazon will last Pan-European FBA stock transfers as usual within the EU area.
Monday, 21 December:
Amazon will start winding down Cross-Border Fulfilment through European Fulfilment Network (EFN) and Pan-European FBA. Beginning in late December, cross-border gratification via EFN and Pan-European FBA will wind down until the end of the year to be able to give Amazon logistics time to satisfy any final orders. Amazon has said that over the week beginning the 21 December, you will notice a dramatic slowdown in cross-border earnings, and such earnings will stop in total on Monday the 28th of December. To keep your European sales, you’ll have to send goods to fulfillment centers in the UK and the EU.
Implications for MFN
Amazon has verified that seller-fulfilled orders (where a vendor is using a third party carrier) can continue to be fulfilled throughout the UK-EU border. You should confirm with your provider how they intend to support you in moving goods across the border as of January 1, 2021. As the seller, it’ll be your responsibility to make sure all duties and tariffs are paid before delivery to the client.
Is There an Impact for Vendors Outside the United Kingdom or EU?
Amazon has indicated that minimal disturbance is likely from products sent directly to the UK or EU from outside of Europe (like in the U.S. or China) in an Amazon Fulfillment Center since the merchandise will have already spanned a customs boundary.
Making yourself aware of these deadlines and preparation for this change is significant to a smooth transition. Subscribe to our website so that you may find more Brexit updates, and other e-commerce information, straight to your inbox.
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