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EU firms blame Brexit for delivery chaos as shoppers hit with extra fees

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·4-min read
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Shipping containers are pictured as a freight lorry or heavy goods vehicle (HGV) leaves from Dublin Port in Dublin, Ireland on January 12, 2021. - Northern Ireland's supply chain is "within days of falling apart" as new post-Brexit checks stem the flow of freight into the UK province, hauliers warned on Monday. Supermarkets are "experiencing considerable difficulties" stocking shelves since the Brexit transition period ended, said Road Haulage Association (RHA) policy manager for Northern Ireland John Martin. (Photo by PAUL FAITH / AFP) (Photo by PAUL FAITH/AFP via Getty Images)
The delays are taught to be caused by extra paperwork and additional customs and border checks. Photo: Paul Faith / AFP via Getty Images

European retailers have blamed Brexit for delivery delays and the extra fees shoppers have to pay.

Companies, such as & Other Stories, Asics, Sezane and Goodhood have pointed the finger at Brexit amid delivery hold-ups lasting days or sometimes weeks.

Consumers who buy items from EU retailers have also been hit extra fees of up to £5 ($7) on fashion items shipped from the bloc.

Some retailers and delivery firms have said that they are charging fees to cover the cost of the extra Brexit red tape.

Parisian fashion brand Sezane said that Brexit will see all UK orders charged a £5 admin fee.

Meanwhile, & Other Stories, owned by Swedish fashion house H&M (HM-B.ST), said it suffered “a limited period” of delays due to Brexit.

Delivery companies have also announced they will be charging packages due to Brexit.

TNT is charging £4.31 on all shipments to and from the bloc. Meanwhile, rival UPS (UPS) is slapping £4.50 on every package and DHL (DPW.DE) is adding a €5 ($6, £4) levy per shipment.

So far, several companies have been hit by the disruption almost three weeks into the new arrangements.

Parcel delivery firm DPD last week said that it will suspend its road delivery services to Europe, including to Ireland due to Brexit. The firm said that “complex” Brexit procedures are causing issues as a fifth of parcels are now being sent with "incorrect or incomplete" data, meaning they need to be returned.

READ MORE: DPD stops delivering UK parcels to EU due to Brexit

The delays are thought to be caused by extra paperwork and additional customs and border checks.

The Brexit deal agreed on Christmas Eve, secures tariff-free and quota-free trading between Britain and the bloc, but it also introduces new customs checks and paperwork at the border.

Food and goods imported into the UK from third countries and then shipped to the EU will face charges.

The trading agreement between the pair includes a one year waiver on declarations on “rules of origin” conditions, which state how much of an item needs to be locally made in order to avoid tariffs.

Under the terms, tariffs will be charged on goods that do not meet rules of origin requirements.

Under the new Brexit terms, anyone sending parcels from the EU to the UK needs to fill in forms including proof of origin and the reason for sending the package.

Retailers selling to the UK are now required to pay customs duties and fill out declaration forms, as well as register for VAT in the UK. VAT relief on imported goods under £15 have also been abolished.

WATCH: 10 ways to Brexit proof your finances

According to government calculations published in July, UK businesses will need to submit 215 more customs forms a year after Brexit — which could cost £12bn.

In early January it was announced that companies exporting goods between Britain and the bloc will be given a 12-month grace period on some supporting Brexit-related paperwork in efforts to ease into the new regime.

The government has promised to “redouble” efforts to inform traders of the paperwork required now that the UK is outside of EU rules.

READ MORE: Firms exhale as UK and EU agree grace period on Brexit paperwork

Last week, senior minister Michael Gove warned UK businesses to brace for “significant disruption” at ports. Gove said on Friday that disruption at Britain's border had not been "too profound" yet.

He especially warned on the impact at the French border. "It is the case that in the weeks ahead, we expect that there will be significant additional disruption — particularly on the Dover-Calais route," the cabinet minister said.

The Brexit red tape had also caused issues for shipments into Northern Ireland, despite government assurances that there would be no border down the Irish Sea.

Britain which officially left Europe in January 2020 had been trading on EU terms up until 31 December last year.

Watch: What are the risks of investing in cryptocurrency?

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