How Brexit is affecting international courier service businesses

The Brexit transition period ended on the 31 December 2020, meaning that the UK is officially no longer part of the European Union (EU).

Many UK businesses have been looking at how Brexit will affect them and their customers, especially if they operate or deliver to the EU.

Here at STO Logistics, we carried out a complete audit to determine if the changes would impact our courier services. As we only operate in the UK, we are pleased to announce that it is business as usual for us.

However, if you use or work for an international courier business, you may be wondering how the recently agreed trade deal will affect you. Here are two of the ways Brexit may have an impact.

Deliveries will still go ahead, but they may take longer

If you deliver to European countries, you can continue to do so in 2021 and beyond.

It may take a little longer, though as there is additional paperwork to complete. People who wish to send parcels from the UK to the EU, and vice versa, will need to complete a customs declaration form for each item they send.

There will also be border checks to take into consideration. Although the checks themselves are short, it could result in long queues at customs.

If you are sending perishable or time-sensitive goods, this is something you will need to account for.

There are additional charges to take into consideration

Some UK residents were shocked that they ordered products from Europe and were charged additional money on delivery.

Customs duties and import VAT are now in play, which must be paid by the recipient of a product when it reaches their country. The charges depend on the cost of the goods and the country they are sent from.

The charges are usually paid by the courier and passed onto the customer. Some couriers are charging additional fees to send parcels to EU countries as a result.

These rules may change in the future as trade agreements evolve, but for the time being, are something that both international couriers and customers need to be mindful of.

To summarise, if you deliver to EU countries, you may need to review your services and see if they will take longer or if you will need to charge more.

If you need to send a parcel to a customer in Europe, you will need to make them aware of increased delivery times and potential fees, to prevent any unpleasant surprises.

The political landscape is changing all the time, so the laws and regulations may be liable to change.