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I know that there is a specific Brexit thread, but it’s huge and more about the politics. I have a specific query that relates to free trade.
I enjoy the freedom, range (and pricing!) of shopping on the likes of Bike 24, R2-Bike, Bike-discount.de etc. The German etailers are much cheaper and have a far broader range and availability than anybody over here. I also think it serves to regulate UK prices a little.
Whilst I appreciate we don’t yet have a trade deal (and this is absolutely not a thread about the state of our readiness or the state of the negotiations), will all imports from Germany attract some sort of tax and duty post-Brexit? Is this the end of cheap European sourced bike goodies?
I know that we should all support our local bike shops, and even our national etailers, but as a consumer I enjoy free choice and the prices are extremely compelling. I am building a new bike over the winter and might order a few key parts in advance if it looks like the end of free trade and cheap German parts!
I bought a commencal meta in 2015 which cost my a little less than a grand. Came with pike rcs, monarch shock, 1x10 sram groupset and was generally very good.
The same bike now would cost 22% more, because of the drop in the value of the pound.
I would suggest the damage is already done.
I agree with c&c, the exchange rate is probably more important and that is already significantly down
Despite the Euro exchange rate, they are still cheaper. The dollar rate is more relevant in terms of the price of Far East components.
The question is about taxes and tariffs post Brexit.
I think it is safe to assume that costs will go up regardless of a "deal" because of all the extra admin that will need to go on for companies selling into the UK.
However, maybe our swashbuckling free traders can swap pork for bikes, I hear China has a few going spare.
Perhaps I’m not seeing the wider implications but I’m expecting stuff from Germany for example to cost more. VAT is pretty similar (German 19% v UK 20%?) but there may be a little import duty and then the killer for smaller purchases will be handling fees adding £8-£12 unless the carriers start getting competitive about it
I reckon postage costs will increase too, particularly if trucks are delayed in crossing the border.
The bargains won't be as bargain-tastic as they are. However, I suspect the cost in UK will rise as well so likely to still be cheaper getting from Europe.
Exchange rate will have a significant impact, but likely to have import charges and no doubt handling fees (which will likely have the biggest impact).
The plan is (or was) to reduce the vast majority of goods to zero tariff:
https://www.bbc.co.uk/news/business-47551266
So I’m guessing there’ll be no difference or cheaper. Or just buy from China for half the price tariff free.
from 5thElephant's link, I see that tariffs on spoons will fall
Great news for the DIY framebuilder
Tariffs are not the only cost. Admin that didn't need to be done before will need to be done now as we will be a third country out of the Single Market and Customs Union.
Or just buy from China for half the price tariff free
STW is going to be peak next year. "My fork from China has failed. Who pays the return costs and WHY WON'T THE LOCAL DISTRIBUTOR HELP ME!!??"
Actually, just thinking about it, CRC is in Northern Ireland so they are going to be dealing with the new border in the Irish Sea - more admin for them too.
As yet no details of the final deal have been released so it's just second guessing about prices rising or falling.
@5thElefant Hasn't it always been the case that- non tarif barriers add in far more cost than tariffs
Brexiteers like to focus on tariffs, but NTBs are far more complex & add in n far more cost
https://www.instituteforgovernment.org.uk/explainers/non-tariff-barriers
Government admitted importers will face a direct bill of £7bn a year for new red tape at this end + (and this isn't really mentioned) same for EU side
That will have be passed on to customers
& @joeegg that is regardless of whether we get a deal or not
But that's just tip of the iceberg
Even if they did cut tarrifs (and that's no longer the plan)
any savings dwarfed by ntbs, (+ what happens to £ if do leave with no deal 📉)
Cost of NTBs up to £75bn a year for UK business
https://twitter.com/mac_puck/status/1287418393231003649?s=19
Importing from Germany will still be cheaper than buying from UK, but only because both will be (much-if no deal-) more expensive
(& Without wishing to derail this thread, won't just be German bike parts, Amazon sellers are currently advised to set up stock in UK & EU if they want to keep selling to both, all the extra red tape & ntbs will have to be paid by someone)
In the event of a (very likely) no deal would all the EU bits go VAT free, with the Royal Mail expected to pick up the import / UK VAT?
I assume it would swamp the Royal Mail and a lot would go through undeclared. When I've bought stuff direct from China (usually unintentionally via eBay) and I don't think Ive ever paid duty.
The plan is that VAT still has to be paid in a no deal (at present rate) by businesses but payment can be deferred,it gets quite complex!
https://www.bdo.co.uk/en-gb/insights/tax/vat-and-indirect-taxes/brexit-the-uks-no-deal-plan-for-vat
I agree it'll be a free-for-all at first, Royal Mail struggles at the moment, no idea how they'd work thru this!
no idea how they’d work thru this!
Everything sitting in lorry parks in Kent and on the autoroute outside Calais for days will probably buy them some time.
Slight tangent but I notice Intense have parted ways with Saddleback. Intense are moving the operation to the existing European hub in Barcelona. Postage was already horrendous from Barcelona but it will perhaps be an indication of what is to come post Brexit.
with the double hit of the virus and brexit putting the UK economy firmly round the U-bend i'd anticipate quite a few importers pulling out of the UK if they have operations in the EU. comparative prices of anything will probably remain similar ( ie if it's cheaper overseas it's likely to remain so ) but as mentioned import will raise things a bit, forget warranty for stuff bought in the EU, and the price of everything, here and abroad will rise. grim times. if you can afford to buy now i would. some small comfort to be had if you're buying a UK frame and some shiny anodised bits from barnoldswick i suppose.
However, maybe our swashbuckling free traders can swap pork for bikes, I hear China has a few going spare.
You joke, but I bought one of those OFO bikes when someone posted the link on here last year.
£90, shimano nexus hub gears and dynamo, front basket, metal mudguards, dropper post, bell, drum brakes, puncture proof tyres.
It's been an absolutely brilliant commuter, shopper and errand runner.
The only thing thats actually broken has been the basket, which I fixed with a bit of box section and some m6 bolts so its going nowhere now 😁. I may have been overloading it somewhat.....
And then fitted a rear rack so it could carry even more 😆
[url= https://live.staticflickr.com/65535/50254088908_42d26d85da_k.jp g" target="_blank">https://live.staticflickr.com/65535/50254088908_42d26d85da_k.jp g"/> [/img][/url][url= https://flic.kr/p/2jyMkNL ]2020-08-22_01-15-14[/url] by [url= https://www.flickr.com/photos/7614571@N05/ ]thisisnotaspoon[/url], on Flickr