BREXIT and physical music products

Discussion in 'Marketplace Discussions' started by englishbob, Jul 29, 2019.

  1. englishbob

    englishbob Its a s*** business Thread Starter

    Location:
    Kent, England
    If you believe the political system in the UK, we are leaving the EU in 3 months come hell or high water.

    For those in the know or the music industry itself, for those of us still consuming vinyl and CD, what are the ramifications price-wise around either a deal or no deal scenario? Are the UK doomed to import pricing ?

    (Most pressing plants I believe are in the EU, be they CD or Vinyl, unless I've missed any notable UK plants still pressing and producing)

    (Please don't let this turn into a Tory/Labour/Libs/UKIP slagging match otherwise this thread will be toast, this isn't about the politics of the decision to leave the EU, this is more about the sceaniro of the UK leaving the EU with a deal or no deal, and the physical production fallout of those potential actions - thanks)
     
    Eric_Generic likes this.
  2. head_unit

    head_unit Forum Resident

    Location:
    Los Angeles CA USA
    No because I'm guessing that like America physical media has mostly gone the way of the dodo (???). Good topic! For those who still crave the touch, got yer passports ready? Maybe it's time to press in the UK again-business opportunity!! Get Chad Kassem to expand Quality Record Pressings overseas!!

    Hmpf, it still amazes me that CDs could be $10 in USA, $20 in UK, $30 in Japan. I spent more on discs than on souvenirs...in particular I recall buying some bootlegs from a lady with a cartful in the middle of then-new Canary Wharf. What an odd location! And yet, she got a bunch of money that day. I also remember seeing Black Sabbath's Headless Cross and snapping that up-in didn't get released in the US for a while IIRC. And some dodgy basement shops in the Akihabara...

    ...anyway back to the thread I wonder if CDs and vinyl are even on anyone's list of tariff products. Maybe you'll get a pass...
     
    Last edited: Jul 29, 2019
  3. englishbob

    englishbob Its a s*** business Thread Starter

    Location:
    Kent, England
    Physical media sales in low numbers probably, but most shops still carry CD, DVD, Bluray and video games, either physical shops or online retailers

    Majority of these are pressed in the EU. Pretty sure most PS4 and Xbox discs are done in Ireland
     
    Eric_Generic likes this.
  4. zphage

    zphage inappropriately touching the out of touch

    Well, this could be the birth of Northern Irish border grey market releases.
     
    scobb, InStepWithTheStars and Dave like this.
  5. Dave S

    Dave S Forum Resident

    I don't think tariffs are the main concern. The main concern would be supply. Road hauliers need to apply for an ECMT to travel on the continent, and these permits will be in short supply (estimates vary, but it is around 5% of the actual number needed). Coupled with a potential ending of the waiver on import VAT for goods under £15, and you potentially end up with fewer options for sourcing LPs and CDs.
     
    tmtomh and englishbob like this.
  6. Dave S

    Dave S Forum Resident

    I think if you order mostly from Amazon, then you probably won't notice much difference. It will be the same as ordering from the US, i.e., there will be a breakdown of the charges such as import duty, import VAT, and shipping. Even the big third party sellers such as allyourmusic are experienced in importing from outside the EU. The only potential downside is that Amazon may eventually restrict UK residents from ordering on its international sites as happened with Australia. If you mostly buy from local shops, then you could be exposed to their supply issues.
     
    englishbob likes this.
  7. As an Australian I buy the majority of my cds from overseas-Importscd,JPC,Burning Shed,Rough Trade,Nugs and a few others.I was a big Amazon customer until they put a geoblock on Australians buying from sites besides Australia and US and since then I have boycotted them until the geoblock is removed.
    There are many ways retailers approach this.In Australia the overseas retailers collect our 10% GST at point of sale and then remit it to Australian government.There are GST exemptions for smaller retailers whose physical product sales to Australia are below about $100K/year.Of all the music retailers I deal with only a few are above this threshold.For European and UK retailers they deduct your VAT.
    The worst part for British purchasers may well turn out to be the inconvenience of the Stone Age method your government uses to collect import duties.
     
    englishbob likes this.
  8. J.A.W.

    J.A.W. Music Addict

    In case of a no deal Brexit EU residents who order stuff from the UK will have to pay VAT on all merchandise with a total value that exceeds 22 euros. It'll be the same for UK residents who order from the EU, though I don't know at which price point tax will be payable - unless the UK Government decides no tax will be levied.
     
    nlgbbbblth likes this.
  9. nlgbbbblth

    nlgbbbblth Forum Resident

    Location:
    Ireland
    More of a case of may have to pay VAT > on goods valued at over €22

    Over here, ordering from US or Canada is risky in November / December as your chances of being caught are higher. But during other times of the year, most packages get through. Same for ones from Australia, Japan etc.
     
  10. J.A.W.

    J.A.W. Music Addict

    You're right, not every EU member country is as strict as some others when it comes to the 22 euros limit (or whatever their currency is). In the Netherlands it varies.
     
  11. AlmostHeavenWV

    AlmostHeavenWV Forum Resident

    Location:
    Lancaster UK
    When I've ordered anything from the US, and the sender, an individual or a business, has filled in a form stating the value of the contents (which is then stuck on the front of the envelope/package), and the declared value of the contents is £15 or over, I've had to pay import duty. I've not heard anything which suggests it will be any different when ordering items from the EU.

    To be honest, it's only happened two or three times, but it's a real drag having to fork out more money before the Post Office or delivery company will hand it over to you.

    You can try asking the sender to fill in a declared value of under £15.
     
    Last edited: Aug 12, 2019
  12. cdash99

    cdash99 Forum Resident

    Location:
    Mass
    The amount of duty involved is obviously small, so let’s keep things in perspective, but if the sender understates the value, who has exposure for being fraudulent?
     
  13. AlmostHeavenWV

    AlmostHeavenWV Forum Resident

    Location:
    Lancaster UK
  14. cdash99

    cdash99 Forum Resident

    Location:
    Mass
    So an item priced at 30 will have a tariff of 6. Declaring a value eliminates the 6, which is where my question is coming from. Under that scenario, would the UK be looking at the overseas seller or the purchaser as the fraudulent party? Again, the 6 is a small amount but a PIA nonetheless, so I’m looking to keep things in perspective.
     

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