‘Amazon tax’ feared for online shoppers
Northern Ireland customers could face post-brexit customs charges on parcels arriving from Britain, watchdog warns
ONLINE shoppers in Northern Ireland who buy goods from Great Britain are facing a new ‘Amazon tax’, it has been warned.
C u s t o ms a d mi n i s t r a t i o n charges may be applied to parcels arriving here from GB after the Brexit transition period ends in the new year, according to the Consumer Council.
The charges are part of a growing concern that goods coming here from Great Britain — the most popular market for local online shoppers — will be more expensive from next month.
Economy Minister Diane Dodds said she had raised the issue with the Government. “Now, more than ever, it is vital that we ensure that consumers do not face price rises,” she said.
Consumer Council chief Carmel Mcconville said she fears online sellers facing extra charges will pass them on to customers in Northern Ireland — or simply stop supplying the region.
NORTHERN Ireland could be faced with a potential “Amazon tax” as customs administration charges may be applied to parcels arriving from Britain after Brexit, according to the Consumer Council.
The organisation, which promotes and safeguards the interests of consumers and businesses, is concerned that people here could face new difficulties when shopping for goods online from January 1.
Customer a dministrat i on charges could be applied to parcels coming from Britain, which will likely lead to higher costs, delays and reduced choice for online shoppers.
Time is running out for Brexit negotiations ahead of the December 31 deadline as the UK and EU continue to be at loggerheads over fishing rights and business competition rules.
The possibility of the charges is part of growing fears that goods coming from Britain after the end of the transition period will be more expensive.
This comes after a new EU guidance document warned that people travelling from Britain to Northern Ireland after January 1 — including MPS, MLAS, peers and government officials — could face having their luggage inspected by EU customs officers.
It also advised that travellers from Britain to Northern Ireland should familiarise themselves with duty free regulations, as EU excise regulations will also apply from January 1.
The proposals are contained in a document setting out the EU’S plans to carry out customs and excise checks at ports and airports here under the Northern Ireland Protocol.
Stormont Economy Minister Diane Dodds said the possibility of online shopping purchases having additional costs is concerning as businesses still do not have any guidance on what the requirements will be for parcels sent from Britain.
“I have raised this issue several times with the UK Government and will continue to do so,” she said.
“Now, more than ever, it is vital that we ensure that consumers do not face price rises.”
Interim Consumer Council chief executive Carmel Mcconville said it was worried online shoppers may end up paying more when ordering goods from sellers in Britain, which is the most popular market for buyers here.
Ms Mcconville also stated that urgent clarity was needed now for online retailers and parcel operators on how the Northern Ireland Protocol will be applied from the end of the transition period.
“The Consumer Council is asking that all postal items from GB to Northern Ireland are exempt from any customs processes,” she said.
“In the absence of guidance, there is a risk that businesses may make decisions on a worst case scenario basis and choose to withdraw some services from Northern Ireland.”
The second-hand car market could also be in for a shock due to changes after January 1.
Chief executive of the National Franchised Dealers Association (NFDA) Sue Robinson said second-hand vehicle prices here are at risk of increasing by a fifth due to the unannounced VAT arrangements.
She said at present car buyers only pay VAT on the margin between the purchase and sale price of a vehicle.
But the NFDA estimates that 10%-20% of cars imported from Britain after January 1 will attract a 20% VAT charge on the whole vehicle.
“After interventions in Parliament from MPS from several parties in Northern Ireland, Government ministers have acknowledged that there is a problem, but they have not yet resolved it with their EU counterparts,” she said.
“It is alarming that, with less than a month to go until the end of the transition period, consumers in Northern Ireland are still facing this price hike.”
‘The Consumer Council is asking that all postal items from GB to Northern Ireland are exempt from any customs processes’