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Old 24th July 2019, 12:03 PM   #1 (permalink)
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EU / UK Trade agreement and effect on importing parts/cars

As per the title, the EU (therefore Uk until we leave), has entered a free trade agreement with Japan that I believe was targeted to be introduced earlier in the year but has now come into force this month.

My understanding is that this will remove the import tax charge on parts/ vehicles, but I am not sure on the effect to VAT.

Does anyone have more knowledge / experience for importing parts recently that confirm import duty is removed but VAT remains?

There seems very little information on the web as to the effect for private individuals, however I know working for a large Japanese company our customers are now asking for cost downs due to the lack of duty.
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Last edited by David; 24th July 2019 at 12:22 PM..
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Old 24th July 2019, 12:10 PM   #2 (permalink)
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I wasn't aware of that implication from the trade agreement so I'm interested to see what happens! If I can order from RHDJapan and Nengun etc without being stung by Fedex that would be great
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Old 24th July 2019, 12:25 PM   #3 (permalink)
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My understanding this was a significant factor in closing Nissan sunderland as Nissan can now import cars with no duty into the UK so it makes little sense to have a factory here
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Old 24th July 2019, 03:02 PM   #4 (permalink)
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My understanding this was a significant factor in closing Nissan sunderland as Nissan can now import cars with no duty into the UK so it makes little sense to have a factory here
Was it f***.

Brexit is the biggest smoke screen bullsh1t excuse going for people to pull out of the U.K and then claim it’s due to “Brexit”.
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Old 24th July 2019, 09:04 PM   #5 (permalink)
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it's only phased in over 2 years or longer it does not happen overnight on import duty from Japan

if we leave Europe without a deal then there would be duty to be paid shipping cars into the mainland. most of the 4x4 are made in the UK. They all had stupid diesel engines or really small petrol ones is the main reason they are not selling

cheaper for them to build in another Eurozone. the design studios are staying as they are talent-based than just assembly
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Old 24th July 2019, 11:50 PM   #6 (permalink)
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it's only phased in over 2 years or longer it does not happen overnight on import duty from Japan

if we leave Europe without a deal then there would be duty to be paid shipping cars into the mainland. most of the 4x4 are made in the UK. They all had stupid diesel engines or really small petrol ones is the main reason they are not selling

cheaper for them to build in another Eurozone. the design studios are staying as they are talent-based than just assembly
Thanks for the reply but my post is not aimed at the closure of Sunderland but the current impact of the new EU trade deal with Japan that is still valid until/ if we leave in Oct on part importation from Japan ie rhdjapan ect or used Skylineís which will likely have the same rules applied

Given my company is being asked for cost downs due to this from some major car manufacturers (and we supply car parts but I donít work in sales) it suggests to me if it is phased we are already in the phase that removes duty from parts.
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Old 25th July 2019, 09:04 AM   #7 (permalink)
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I would suggest that any reduction in duty (on anything) leads to the price remaining the same. But an increase in duty leads to an increase in price.
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Old 25th July 2019, 12:31 PM   #8 (permalink)
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I would suggest that any reduction in duty (on anything) leads to the price remaining the same. But an increase in duty leads to an increase in price.
Thats not the way big business works certainly.

My question is also relating to buying in Japan and privately importing so I don't think your comment is relevant.

To give an example before the trade deal

What I pay = (Sale price in Japan + Shipping) x (duty 10%?) x (vat 20%).

Therefore as a result of the deal as a minimum what I import privately from Japan should reduce in price by the import duty.

So I don't agree with you that imported price I pay on privately imported parts will not change (it has to get cheaper), as the sale price in Japan is not changing.

However I do agree with you that UK retailers of Japanese parts such as the registered traders on this forum will likely not pass this saving on to the end customer.
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Old 25th July 2019, 01:34 PM   #9 (permalink)
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Even if we benefit from it, I've read that experts predict we'll only benefit from the EU-Japan trade deal for two months or so and this depends on if we come to a deal when leaving the EU.
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Old 25th July 2019, 07:04 PM   #10 (permalink)
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Vat will always apply and that’s the biggest single cost. 20%.
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Old 26th July 2019, 10:11 AM   #11 (permalink)
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Vat will always apply and that's the biggest single cost. 20%.
I agree but strangely all the parts I have recently imported privately from China (not skyline parts) have not attracted any duty or vat
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Old 6th August 2019, 03:28 PM   #12 (permalink)
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Ok. Ive used a Duty calculator to give me an idea of some of the costs of ordering parts form Japan.

Ive attached the screenshot used and 0% Duty was added.
Attached Images
File Type: png vat.PNG (9.9 KB, 9 views)
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Old 6th August 2019, 05:07 PM   #13 (permalink)
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Ok. Ive used a Duty calculator to give me an idea of some of the costs of ordering parts form Japan.

Ive attached the screenshot used and 0% Duty was added.


Your ordering parts?!
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Old 6th August 2019, 05:09 PM   #14 (permalink)
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Your ordering parts?!
Maybe I've ordered a few......


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Old 7th August 2019, 11:41 AM   #15 (permalink)
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Ok. Ive used a Duty calculator to give me an idea of some of the costs of ordering parts form Japan.

Ive attached the screenshot used and 0% Duty was added.
Cool I also have some parts coming in, if they attract zero duty I might order a new gearbox
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Old 7th August 2019, 12:55 PM   #16 (permalink)
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A free trade agreement results in the removable of tariffs and duty rates (both customs and excise) but import VAT remains payable. Import VAT is a duty of customs but is treated as a "sales tax" and the country you buy from can negate charging you their local sales tax and instead the UK rate becomes payable. The import VAT is calculated on the cost of the goods + shipping + insurance, as others have said.

Some sellers will mis-state the landed value (i.e. the calculation above) of higher value items by saying the goods are low value (less than £40 total) or "for personal use". This is why sometimes things can come into the UK with no charges on them (low value below £40 is below the threshold for charging duties/VAT). If those goods get stopped by Customs then the recipient (buyer) has to pay the relevant duties (plus usually an admin fee) before the goods are delivered to them.
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Old 7th August 2019, 05:37 PM   #17 (permalink)
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Maybe I've ordered a few......


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Tell me more
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Old 8th August 2019, 09:02 AM   #18 (permalink)
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Nothing too drastic but I may have ordered a front and rear spoiler, plus a steering wheel from our friends at Mine's
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Old 8th August 2019, 10:10 AM   #19 (permalink)
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Nothing too drastic but I may have ordered a front and rear spoiler, plus a steering wheel from our friends at Mine's

She's being spoilt
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Old 8th August 2019, 11:49 AM   #20 (permalink)
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She's being spoilt
Just continuing the tradition.
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