Post-Brexit EU Distribution of Footwear

Executive Summary

The Client was a large shoe and footwear retailer with multi-channels of distribution within the UK and across the European Union (EU).



The Client required a post-Brexit alternative solution for their European supply chain operation serviced from the UK. The client required a five-year business solution which would meet future operating requirements, identify the optimum locations and necessary network configuration to maintain required customer service levels. In addition, the client required guidance concerning customs duties, tax, regulations and import/export requirements for any new proposed supply chain solutions within the EU.

Completed Projects
ICS Global Services: Brexit Solution Shoe Retailer
ICS Global Services: Brexit Solution Footwear

The Solution

Ian Simmonds proposed and mapped supply chain solutions which included a new EU distribution hub within Belgium to optimise inbound flows, stockholding and availability whilst being ideally positioned for future market growth. The new Belgium hub would receive UK products directly from the existing UK distribution centre. Non-EU products (third country) would be imported directly into the Belgium hub to minimise duties and taxes. 

As the client would need to register a business entity within the EU, Ian modelled a multinational business solution including Transfer Pricing to establish correct pricing compliance with the Arm’s Length Principle.

Ian documented various solutions to optimise duty and tax payments, avoiding double taxation and utilising duty and VAT deferral.

Ian Simmonds proposed and mapped supply chain solutions which included a new EU distribution hub within Belgium to optimise inbound flows, stockholding and availability whilst being ideally positioned for future market growth. The new Belgium hub would receive UK products directly from the existing UK distribution centre. Non-EU products (third country) would be imported directly into the Belgium hub to minimise duties and taxes. 

As the client would need to register a business entity within the EU, Ian modelled a multinational business solution including Transfer Pricing to establish correct pricing compliance with the Arm’s Length Principle.

Ian documented various solutions to optimise duty and tax payments, avoiding double taxation and utilising duty and VAT deferral.

Ian Simmonds proposed and mapped supply chain solutions which included a new EU distribution hub within Belgium to optimise inbound flows, stockholding and availability whilst being ideally positioned for future market growth. The new Belgium hub would receive UK products directly from the existing UK distribution centre. Non-EU products (third country) would be imported directly into the Belgium hub to minimise duties and taxes. 

As the client would need to register a business entity within the EU, Ian modelled a multinational business solution including Transfer Pricing to establish correct pricing compliance with the Arm’s Length Principle.

Ian documented various solutions to optimise duty and tax payments, avoiding double taxation and utilising duty and VAT deferral.

The Results

Ian Simmonds provided the client with a detailed report and business case for a post-Brexit multi-channel supply chain solution, which covered:

  • International supply chain modelling.
  • Registration of a business within the European Union.
  • Obtaining EORI numbers via the Economic Operators Identification and Registration system.
  • Operating a multi-channel European supply chain solution via a new distribution centre within Belgium.
  • The use of alternative Incoterms for the new international supply chain.
  • The use of Transfer Pricing as a method to allocate profits between territories.
  • An application for Authorised Economic Operator (AEO) status.
  • Minimising duty and VAT via deferral schemes.
  • Maintaining a reasonable cost-to-serve across a large customer base, due to the geographic expansion.
  • Recommended alternative product flows to optimise pricing structure. 

Client Testimonial

"Ian is an experienced and skilled International Trade Consultant who has demonstrated excellent and extensive knowledge of EU import and export compliance and control procedures. During the challenges of Brexit, Ian provided excellent direction and support for our business."
Operations Director

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