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Debenhams shuts Irish webstore on Brexit issues

13
Jan '21
Pic: Shutterstock
Pic: Shutterstock
UK retailer Debenhams’ webstore has stopped taking orders in Ireland for now due to complications and uncertainty linked to Brexit. “We have therefore made the difficult decision to temporarily switch off debenhams.ie," it said. The issue reportedly seems to be the Brexit ‘rule of origin’ clause that has caused confusion for several retailers.

Value-added tax and import duties must be applied to goods that have been made—or that contain components that were made—in countries outside of the United Kingdom or the European Union (EU) and that are being resold to EU consumers, the clause in the Brexit trade deal says. That could apply to a huge number of products with the tax meant to be collected at the point of sale.

Several European retailers said they could no longer ship to the United Kingdom due to similar issues. Stena Lines canceled 12 sailings between Ireland and the United Kingdom, citing travel restrictions and a fall in freight volumes during the first week of Brexit proper.

“Problems in the supply chain have resulted in a significant fall in freight numbers this week at our Holyhead and Fishguard ports,” Stena was quoted saying in a statement. It also said capacity can be added quickly as demand picks up.

There are concerns from EU-based retailers that they’ll see higher costs and much more paperwork. But UK retailers are also worried and many are currently analysing their situations to see just what’s needed to be able to sell easily to customers in EU countries.

Fibre2Fashion News Desk (DS)


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