Government’s ‘fulfilment house register’ is cause for 3PL concern

Leading logistics services specialist, Walker Logistics Ltd, has warned that the Government’s plan to introduce a ‘register for fulfilment houses’ who store and distribute goods on behalf of online retailers could have wide-ranging implications for the third party logistics (3PL) sector.
The ‘register’ was announced by Chancellor George Osborne in his Spring Budget speech and is one of a range of measures that the Government plans to take to crack down on non-EU online traders that do not pay the correct VAT and duty to HMRC on goods that they store in UK warehouses before selling them to UK consumers via web-based channels.
The problem is said to be costing the Treasury an estimated £1.5bn in lost VAT revenue each year.
“With online shopping now accounting for some 20 per cent of all non-food retail spending in the UK, these overseas traders are unfairly undercutting all businesses trading in the UK, abusing the trust of UK consumers and depriving the government of significant revenue,” says David Gauke, Financial Secretary to the Treasury.
The Government defines a ‘fulfillment house’, as: ‘a business that provides services of storage, breaking bulk, unpacking, re-packing and making (or arranging) subsequent delivery to its clients’ customers of goods imported from outside the EU which have been cleared for customs purposes.’
The ‘register’ – which is set to come in to effect in 2018 – will set down ‘fit and proper’ standards that a ‘fulfilment house’ will need to meet in order to operate.
For example, 3PL operators will have to maintain accurate records and be able to provide evidence of the due diligence they have undertaken to ensure that their overseas clients are VAT registered in the UK, or legitimately non-registered.
It is hoped that the introduction of the ‘fulfilment house register’ will make it more difficult for non-compliant online retailers to trade in the UK and, at the same time, enable HMRC to identify and tackle them more easily.
Bob Montague, managing director of Walker Logistics, commented; “Of course the Government must stamp out fraudulent activity that is illegally depriving HMRC of tax revenue.
“However, the proposed ‘fulfilment house register’ throws up a number of issues that are likely to concern the logistics sector. For instance, will it add further unnecessary and unhelpful levels of bureaucracy that will hinder the day-to-day running of businesses operating in a sector already overly burdened by red tape?
“It would also appear that the logistics industry is being recruited to ‘police’ the online trading market – which seems wholly unreasonable.”
Established in 1999, Walker Logistics offers a comprehensive range of bespoke logistics services to a broad range of clients from a modern facility close to Junction 14 of the M4.

About Logistics Buyer

International Logistics Buyer is the leading authority in global logistics and supply chain content, delivering expert news, in depth articles, exclusive interviews, and industry insights across print, digital, and event platforms. Published 10 times a year, the magazine is a trusted resource for professionals seeking updates and analysis on the latest developments in the logistics sector.

To submit an article, or for sponsorship opportunities, please contact our team below.

Chris Lingham image - Fire Buyer

Chris Lingham

Group Sales Manager

Afua Akoto picture - Fire Buyer

Afua Akoto

Marketing Manager

Read the Latest Issue

Logistics Buyer Magazine Mockup

Follow us on LinkedIn

Follow us on LinkedIn

Click Here

Advertise here

Reach decision makers and amplify your marketing

Advertise here

Click Here

Related News

Liebherr

Cover Story – Liebherr: Plugging into the Future

Liebherr is driving electrification at the heart of port operations, turning innovation and…
PD Ports

PD Ports celebrates 60% increase in bulk cargo volumes

PD Ports, owner and operator of Teesport, has recently celebrated the first anniversary since the unveiling of its state-of-the-art
automation

Mercadona takes charge of new automation provided by Cimcorp

Despite handover being just before the busy Easter trading period, Mercadona’s trust in the intralogistics automation delivered by Cimcorp
XPO

XPO Logistics appoints Arron Kendall as Sales and Marketing Director

XPO Logistics, a global provider of freight transportation services, has announced the appointment of Arron Kendall as Sales and Marketing
webinar

Free webinar for SMEs keen to trade in Europe post-Brexit

Flanders Investment & Trade, the official regional body, is hosting a free webinar on customs procedures on inbound goods, future changes
congestion

Port congestion is not the only issue facing the US supply chain

Cargo movement data tracked by project44 shows that congestion has increased again across all four major Southern California ports
Ocean

Ocean Network Express opens a dedicated container depot in the Port of Hamburg

Ocean Network Express (ONE) and Universal Container Services (UCS) have strengthened their partnership by opening a dedicated ONE container

Port of Hamburg striking growth

Port of Hamburg shows growth rate. For Germany’s largest universal port, seaborne cargo handling in the first nine months of 2019
Business people shaking hands.

Black Friday operations

The immense volume of deliveries passing through the logistics network over black friday creates an extreme peak season for all supply chain stakeholders

Optimising Export Finance efficiency with the addition of Credit Insurance

Fineon Exchange (Fineon), the go-to online marketplace platform for export finance, today announced the appointment of Aon Credit Solutions (Aon)
Scroll to Top