Feedback from Fulfilment House Consultation

June 30, 2016

At a meeting held by UKWA Customs & Excise Advisory Board and attended, amongst others, by Managing Director of ILG (International Logistics Group) UK, Mike Stephenson, members’ feedback on the Government’s Fulfilment House Scheme Consultation was analysed and summarised for presentation to HMRC by the 30th June deadline.

Key points arising included:

  • A demand for closer definition of what constitutes a Fulfilment House “ currently the definition is considered too broad.
  • Question as to who will manage and police the scheme “ this burden should not fall on the industry
  • Fulfilment houses never take ownership of the goods they handle or have sight of the value. Therefore, they cannot be penalised.

While there were important issues emerging from the consultation, UKWA CEO Peter Ward questions whether this should be the highest priority in the new business environment post Brexit vote earlier this month.

Clearly we recognise that HMRC are trying to close the VAT gap and we are supportive of that. However, we believe that the scheme is flawed and important issues need to be raised, he said. This consultation was framed pre-Brexit, so at this stage, as the Voice of the Industry, UKWA is calling on HMRC to focus on advising businesses coping with the potential impact of leaving the EU, rather than introducing a new registration scheme relating to import of EU goods that arguably has become irrelevant.