How Brexit is changing the way we buy clothes
Is this a case of Remainers refusing to accept the realities of Brexit or has the fashion industry really been unfairly treated? Probably a bit of both: fashion has been largely forgotten in this trade deal – quite the oversight given it represents 1.6 percent of British GDP. Equally, brands have known that this was coming since 2017 and there has arguably been a lack of preparation, resulting in the chaos we are seeing right now.
But as consumers, what we really want to know is whether clothes will become more expensive and whether our favourite brands will survive. Shopping in the UK will inevitably change – but by how much?
Will it always take a month for clothes to be shipped here from Europe?
This winter and early spring – yes, but after that, it’s unlikely. As Border Control and brands become more adept at working to new rules, delivery times will shorten. Although shipping will inevitably take longer than it did before, as goods and paperwork now need to be checked.
Will European brands keep refusing to ship to the UK?
Browse online now and you’ll find most small European brands – and a number of larger ones – have paused sales to the UK, but this is mostly a temporary measure put in place until they have filled out the relevant customs declaration forms and worked out how to cope with VAT-related issues. Right now brands are worried about costs incurred by customers returning goods (more on that later) – as these issues are ironed out, trade should resume for all but the smallest companies unable to cope with the added paperwork.
Speaking of which, will I have to pay import duties on clothes from Europe?
It’s… complicated. If you buy something from an EU brand with part of their supply chain outside of Europe, then yes: so an Italian dress with buttons made in China or French shoes with buckles made in Indonesia. In other words, most goods. And don’t expect costs to be upfront.
After you’ve bought something, you will receive a text or email from the courier company containing a link asking you to pay duties. These can mount up: for a £200 dress, you’ll pay around £70 to £90 extra – fees that are only levied when the item reaches the UK.
The cheaper something is, the smaller a percentage you’ll pay. Most duties are a split between VAT, which for fashion sits at around 15-20 percent (although for baby clothes it is 0{85e7f5b37d2b3b32ff943ebdbb52de90edc4132ca8c2134f6732351e5442126f} and for wool is 20{85e7f5b37d2b3b32ff943ebdbb52de90edc4132ca8c2134f6732351e5442126f}), and customs, which apply to all goods costing more than £135 and which for fashion can be as high as 40 percent. This makes trying to work out how much you owe upfront almost impossible.
Added to that is the handling fee. Royal Mail has a flat fee of £8, and won’t deliver until you pay up. DHL charges a fee of 2.5 percent of the duty/tax, which at the moment includes a minimum charge of £11.