Amazon UK sellers preparing shipments may face operational disruptions if blocked by the Fulfillment House Due Diligence Scheme (FHDDS) compliance requirements. The inability to create new shipments without meeting these standards poses significant challenges for cross-border e-commerce merchants.
Under Amazon UK's updated regulations effective June 30, 2024, sellers must provide Import Entry Numbers (IEN) for all goods entering Amazon fulfillment centers since January 1, 2024. This aligns with HM Revenue & Customs' (HMRC) FHDDS initiative. Failure to submit valid IENs within 60 days of goods arrival, or provide adequate justification, may result in restrictions on creating new shipments.
Interim Compliance Options During VAT Application
For sellers awaiting UK VAT registration but requiring immediate shipment capabilities, two provisional solutions may satisfy FHDDS requirements:
Option 1: Third-Party VAT and EORI Clearance
HMRC permits the use of third-party UK VAT numbers and Economic Operator Registration and Identification (EORI) numbers for customs clearance. Qualified service providers can manage clearance procedures and obtain corresponding IENs. As customs declarations may consolidate multiple sellers' goods, a single IEN might reference shipments for various merchants. Verification of service provider credentials remains essential to ensure declaration accuracy and regulatory compliance.
Option 2: Temporary EORI Registration
HMRC allows temporary EORI registration prior to VAT number issuance, enabling customs clearance and IEN acquisition. While this interim measure facilitates immediate operations, sellers must subsequently register official EORI numbers upon VAT approval to maintain long-term compliance.
Ancillary Compliance Support Services
Specialized providers offer supplementary services to address compliance challenges and substantiate UK business operations during potential shell company audits:
- Physical Office Leasing: Provides authentic workspace solutions including private offices, network infrastructure, and dedicated accounting spaces beyond shared coworking facilities.
- Local Employment Facilitation: Assists in establishing legally compliant employment relationships with UK-based staff.
- Domestic Telecommunications: Supplies UK mobile services to enhance local operational presence.
- Account Restoration Services: Offers professional representation for sellers facing operational restrictions due to compliance issues.
These services aim to support legitimate business operations rather than circumvent regulations. Compliance remains fundamental for sustainable cross-border e-commerce development, with regulatory adherence serving as the cornerstone of long-term marketplace participation.