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Old 09.05.2007, 22:51
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Tesco sends DVDs 1,400 miles to SWitzerland to save 1.56

Who would have thought!!

http://www.telegraph.co.uk/money/mai.../cntesco08.xml
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Old 09.05.2007, 23:10
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Re: Tesco sends DVDs 1,400 miles to SWitzerland to save 1.56

Sound fair enough to me, markets are very competitive !

TO do this they would need to first "sell" the items in bulk to a Swiss compnay. Is this something the Swiss Post officially offer ? Could well be methinks - must investigate
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Old 09.05.2007, 23:18
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Re: Tesco sends DVDs 1,400 miles to SWitzerland to save 1.56

Is this it ? Cross-docking :

http://www.swisspost.ch/en/index_log...ossdocking.htm
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Old 10.05.2007, 08:11
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Re: Tesco sends DVDs 1,400 miles to SWitzerland to save 1.56

Does this mean that us folks in Switzerland can order DVDs from them and pay less postage fees than the folks in the UK?
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Old 10.05.2007, 10:52
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Re: Tesco sends DVDs 1,400 miles to SWitzerland to save 1.56


This kind of thing really makes me angry!
Sorry, I can't think of anything constructive to add....
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Old 10.05.2007, 15:07
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Re: Tesco sends DVDs 1,400 miles to SWitzerland to save 1.56

Very similar to some lovely frauds that have occured. Set up two companies and sell from one company to the other. If you set it up right you can claim back the tax "charged" by one company without actually paying any.

Also, selling phones on behalf of the telcos. The commisions are usually much higher than a month's rental, and when the month's rental is free, well it's clear. Company 1 sells the phones to company 2, gets the commission but never pays any call charges.


If you allow loopholes, there will always be people who discover and exploit them....
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Old 10.05.2007, 15:26
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Re: Tesco sends DVDs 1,400 miles to SWitzerland to save 1.56

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Very similar to some lovely frauds that have occured. Set up two companies and sell from one company to the other. If you set it up right you can claim back the tax "charged" by one company without actually paying any.

Also, selling phones on behalf of the telcos. The commisions are usually much higher than a month's rental, and when the month's rental is free, well it's clear. Company 1 sells the phones to company 2, gets the commission but never pays any call charges.


If you allow loopholes, there will always be people who discover and exploit them....
That's not really what makes me angry... although... I;ll have to think about it...
I think it is scandalous to drive the damn things 1400miles wasting diese, poluting diesel exhaust on the way, sending tiny tire particles into the enviroment, tearing up the roads, getting in the way of us small car drivers... etc, etc. It's a huge "gaspiage!" to save 1pound 50 on a DVD???? UGH! Can't we buy movies online/downloaded instead of actully buying a physically DVD...
The whole thing makes me crazy!

Last edited by miniMia; 10.05.2007 at 15:45.
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Old 10.05.2007, 15:28
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Re: Tesco sends DVDs 1,400 miles to SWitzerland to save 1.56

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It's a huge "gaspiage!" to save 1pound 50 on a DVD???? UGH! Can't we buy movies online/downloaded instead of actully buying a physically DVD...
The whole thing makes me crazy!
.. you and lots of other semi-responsible people. Unless people are educated as to what that extra quid they save is costing, then of course why not? Another thing is whether they want to be educated.......
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Old 10.05.2007, 15:44
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Re: Tesco sends DVDs 1,400 miles to SWitzerland to save 1.56

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.. you and lots of other semi-responsible people. Unless people are educated as to what that extra quid they save is costing, then of course why not? Another thing is whether they want to be educated.......
And also if they know... I wonder how many people realize when buying that this will happen?
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Old 10.05.2007, 16:00
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Re: Tesco sends DVDs 1,400 miles to SWitzerland to save 1.56

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And also if they know... I wonder how many people realize when buying that this will happen?
In a lot of cases where these loopholes are exploited, the customer is unaware. That is, the business still charges the UK market price and pockets the "loophole" benefit as extra profit.
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Old 10.05.2007, 16:05
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Re: Tesco sends DVDs 1,400 miles to SWitzerland to save 1.56

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.. you and lots of other semi-responsible people. Unless people are educated as to what that extra quid they save is costing, then of course why not? Another thing is whether they want to be educated.......
They are Tesco customers, they want pile it high sell 'em cheap don't think most of them will give a damn as long as they save their 1.50 .
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  #12  
Old 10.05.2007, 17:17
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Re: Tesco sends DVDs 1,400 miles to SWitzerland to save 1.56

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I think it is scandalous to drive the damn things 1400miles wasting diese, poluting diesel exhaust on the way, sending tiny tire particles into the enviroment, tearing up the roads, getting in the way of us small car drivers... etc, etc. It's a huge "gaspiage!" to save 1pound 50 on a DVD???? UGH!
Do you buy out of season fruit and veg? why is this any more scandalous than shipping strawberries from South Africa just so they are availiable all year round?

I agree it's not very green but it's no less green than a lot of other things that go on every day of people would just stop and think about them!
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Old 10.05.2007, 18:10
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Re: Tesco sends DVDs 1,400 miles to SWitzerland to save 1.56

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Do you buy out of season fruit and veg? why is this any more scandalous than shipping strawberries from South Africa just so they are availiable all year round?

I agree it's not very green but it's no less green than a lot of other things that go on every day of people would just stop and think about them!
Ummm.. As a matter of fact, I most certainly do not buy fruit, veg nor meat from South Africa! I try very hard to make sure that what I buy comes from Switzerland or at the very least the countries close to it. I try not to buy any fresh fruit or veg out of season. I don't buy strawberries in the winter. In fact, I don't even buy strawberries in the summer if they are not Swiss... and I have strawberry (and tomato) plants growing on my balcony as we speak.

I can't say I don't buy ANYTHING from "overseas" but I try not to.

Shipping strawberries from South Africa IS scandalous!
But, having said that, they only go one way! they don't come here then turn around & go right back....
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Old 14.05.2007, 17:33
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Re: Tesco sends DVDs 1,400 miles to SWitzerland to save 1.56

That is so crazy. I thought that they were just moving the administration to Zuerich but the newspaper report seems to say that the disks will be sent there before being posted to the customer.


It does highlight the issue of the abuse of existing treaties by Switzerland, to allow EC businesses to operate from Switzerland but pay taxes on their EU-generated profits at a low rate.

EU countries wouldn't be allowed to do that except unless approved by the relevant EU commission so I don't see why Swiss cantons should be allowed to undercut EU taxes to cream off money made in the EU. I believe the treaties are supposed to provide safeguards to stop this happening but it seems the Swiss are chancing their arms. It'll be interesting to see how this plays out in the end.
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Old 19.05.2007, 17:44
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Re: Tesco sends DVDs 1,400 miles to SWitzerland to save 1.56

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It does highlight the issue of the abuse of existing treaties by Switzerland, to allow EC businesses to operate from Switzerland but pay taxes on their EU-generated profits at a low rate.
Well, this is clearly not the case here and the Tesco DVD story has nothing to do with Swiss tax law or treaties with the EU at all. Tesco is actually taking advantage of a loophole in UK tax law, the "low value consignment relief" as mentioned in the linked Telegraph article. Tesco could just as well ship those DVDs to Russia or any other non-EU country and mail them from there.
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Old 23.05.2007, 16:03
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Re: Tesco sends DVDs 1,400 miles to SWitzerland to save 1.56

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Well, this is clearly not the case here and the Tesco DVD story has nothing to do with Swiss tax law or treaties with the EU at all. Tesco is actually taking advantage of a loophole in UK tax law, the "low value consignment relief" as mentioned in the linked Telegraph article. Tesco could just as well ship those DVDs to Russia or any other non-EU country and mail them from there.
Yep, you're correct. I had originally heard that Tesco moved their business HQ to Zuerich to take advantage of the tax breaks but in this case it looks like they are simply exploiting a territory outside of the EU yet physically close, in order to increase margins on single DVD sales.

The article didn't say anything about orders that broke the tax threshold though. In that case, I can't see how it's advantageous at all. I guess that enough orders are below 18 quid that the competitive advantage is worth it.
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Old 23.05.2007, 16:29
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Re: Tesco sends DVDs 1,400 miles to SWitzerland to save 1.56

The victim here seem to the UK government. Such things are common wherever a high-tax country is located near a low-tax country. Those people in Switzerland who do regular meat-runs over the border are also a case in point.

Something important needs to be said on this thread however. We often hear people getting up in arms about food products being transported from other countries and how this is responsible for greenhouse gases, etc. These DVDs are also a case in point.

However, the fact is that the mass transportation of thousands of small items together in a single container means that the effective carbon footprint of the individual item is extremely small.

If we consider the collective footprint of the items in our shopping basket - does it add up to more than the co2 we just emitted by driving our car to the shops? I seriously doubt it.

In the case of the DVDs they are even lighter and smaller than say, items of fruit. The tax saving was around 4 francs per DVD - now how much would it cost to "buy back" the carbon footprint left by each DVD? If Tesco were to donate some of the profits back to neutralising the footprint left by each DVD it probably wouldn't cost very much at all. But that would spoil all the fun we'd have by pointing the finger wouldn't it?

In fact, in the time you've spent reading this thread, you've probably released 100g of cO2 from the electricity your computer has used and 20g from your own body. Now how does that compare the CO2 emissions generated by one of these DVDs?
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Old 23.05.2007, 17:12
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Re: Tesco sends DVDs 1,400 miles to SWitzerland to save 1.56

We've been in Zurich about 8 weeks now, but for the last two years we actually used the tesco DVD rental service. There was no indication in any written material or on their website that the DVDs came from anywhere other than within the UK. I think most customers would be very surprised to find out that this is the case. Some, like us, would be horrified, others probably wouldn't care at all, but, as mentioned earlier, most fruit and veggies in the UK, unless you look very hard and are close to farmers' markets etc, come from all over the world. This was a huge shock to me when we moved to the UK from Australia. Of course this doesn't mean that we shouldn't all try to do something about it, but, especially in the UK, where you live makes a huge difference to what you are actually able to access.

Kate
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Old 23.05.2007, 17:20
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Re: Tesco sends DVDs 1,400 miles to SWitzerland to save 1.56

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The article didn't say anything about orders that broke the tax threshold though. In that case, I can't see how it's advantageous at all.
Whenever I order a bunch of DVDs from play.com, they're always shipped individually even if I order them at the same time. I always found this rather strange but they're probably doing it for this exact reason. Maybe Tesco is doing the same... and if a single item's value is above the threshold they probably don't ship it to Switzerland at all. (Just speculating )
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Old 23.05.2007, 17:26
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Re: Tesco sends DVDs 1,400 miles to SWitzerland to save 1.56

Play.com are based in the Channel Islands, I think it's their standard policy to ship stuff per unit so ensure it's below 16 and tax free even
though it means they'll send you three dvd's costing a fiver each in three separate packets, I guess the logistic changes would not be worth it.

There are a few other companies shipping from Jersey or Guernsey taking advantage of that (Healhtspan, Picstop, etc)
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