UK and EU ecommerce sellers will still face import tariffs even if a UK-EU Free Trade Agreement is struck by 31 December 2020, the end of the Brexit transition period. For many, this will mean double taxation: UK and EU customs duties on the same inventory. Sellers on major marketplaces hold the biggest exposure as they are obliged to clear their goods into the EU or UK by the platforms ahead of any selling after 1 January 2021.
Since many UK and EU sellers have imported their inventory from China or elsewhere into their domestic stores, they will not be counted as originating from the UK or EU under customs ‘rules of origin’. Shipments to EU consumers from the UK, and vice-a-versa, will therefore still subject to EU or UK tariffs.
Source Avalara
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