RETAIL ENVIRONMENT
Retailers may abandon or burn returned items in Europe
High Street retailers and luxury brands may abandon and even burn items returned by EU customers that are now stuck in European warehouses rather than bringing them back to the UK to avoid the cost and hassle of Brexit red tape.
EU consumers buying a coat, a pair of boots or any other product from a UK-based retailer now have to pay charges including import duties and courier or postal handling fees following Britain's exit from the Customs Union and Single Market.
Some of the same costs and red tape also apply to British customers buying products that have been shipped from the EU - adding a third to the cost of online orders and slowing down deliveries due to extra checks at ports.
According to a report carried out by the BBC, the Daily Mail and Daily Express, “UK retailers could abandon goods EU customers want to return with some even thinking of burning them because it is cheaper than bringing them home.
"They say the new EU trade deal has put costly duties on returns at a time when firms are already struggling."
UK High Street and luxury brands are increasingly finding their goods stranded in transit as they are transported to the European market.
Customers in the EU are being asked to pay the extra costs by couriers when the goods reach their door, so many are rejecting them to avoid paying the bill. Figures from data firm Statista show that 30 per cent of orders are now being returned.
Four major UK High Street fashion retailers are have begun stockpiling returns at warehouses in Belgium, Ireland and Germany, according to the BBC.
One brand will incur charges of almost £20,000 to get the returns back. Apart from the charges, businesses need to also complete Customs declaration forms detailing the contents, their origin and value to get goods through ports.
UK Fashion & Textile Association chief Adam Mansell said retailers may now find it cheaper to simply dispose of the items at the EU warehouses rather than pay to have them shipped back to Britain.
He said: 'It's part of the ongoing small print of the deal. If you're in Germany and buying goods from the UK, you as the German customer are the importer bringing goods into the EU.
'You then have a courier company knocking on the door giving you a customs clearance invoice that you need to pay to receive your goods.'
