In Part 3 of our 2018 BREXIT update (check out Part 1 and Part 2) Rudee Bertie touches on the issues surrounding Mail Delivery Services and revenues that are currently slipping through-the-net.
Post-BREXIT, we foresee changes for mail delivery services too.
So much of what is imported into the Eurozone passes ‘under the wire’ for customs and revenue purposes. This is because it comes in via the mail delivery services, which deal in high volumes of mainly smaller and lower-value packages. We estimate that of the traffic which comes through the mail delivery systems containing items on which taxes and duties are due, as much as 85-90% may be passing through uncollected. Only those large scale commercial enterprises who need to be demonstrably above-board and shown to be handling taxes and duties openly are engaging in the additional processing and payment load that comes with going through the correct channels. Everything else is coming in as mail, undeclared, arriving at the customer’s front door without duty and taxes having been charged or paid.
We’ve been saying for some time now that it’s inevitable – and more so now with Brexit underway – that HMRC will clamp down on this enormous missed opportunity for revenue generation. This in turn means more incoming mail from across the world as well as from the Eurozone, will become subject to some form of customs control.
We believe that with BREXIT will come a sea-change in the way taxes and duties are administered on consignments coming through the mail service, potentially putting an extra administrative burden on those services, along with the risks associated with non-compliance.
With CC Collect, our in-house developed app-based payment processing system, CCL is well positioned to grow its business in this area. CC Collect provides mail and courier services with a custom designed means of automating payment processing on high volumes of potentially lower-value consignments. Instead of incurring the cost of employing administrators to handle high-volume small payments, CC Collect offers an automated process which can streamline collections and help to keep delivery companies compliant.
Read more about CC Collect here.
If you’re a mail delivery service looking ahead to BREXIT and the changes that could come, contact CCL to find out how we could be helping you to prepare to take advantage of the opportunities.