Brexit: Here’s What You Need to Know If You Trade With The EU

Brexit: Here’s What You Need to Know If You Trade With The EU

Clearly, there is still a lot of uncertainty around Brexit. As a business owner who trades with over countries in the EU, you should plan the worst case ‘No Deal’ scenario. Here is what we suggest you plan for:

Movement of goods

If there is a ‘No Deal’ Brexit customs declarations will need to be made to move goods between countries. The UK is currently implementing an electronic customs declaration system for businesses. So, you need to check your systems and processes are up to scratch. You will also need to ensure you have a UK Economic Operator Registration and Identification (EORI) number, the forms can be found here.

You may need an agent to help with import/export declarations as you would for trading outside the EU. Don’t forget to check whether you need additional information from your carrier. Importers can register for Transitional Simplified Procedures (TSP) deferring declarations and paying duty at the border. The HMRC guidance on the new electronic customs system can be found here.

An essential exercise for all businesses is Supply Chain Mapping.  Knowing where inputs come from and what product category they fall into can help you assess potential tariffs. For businesses that only export to the EU this will be new and could be time consuming. More details on the tariffs can be found here.

 

Product compliance

UK product standards and regulations will continue to be aligned to the EU at the point of exit. However, a “No Deal” Brexit could mean UK assessment and certification arrangements cease to be recognised by the EU.

 

Business contracts and employees

If you have contracts with EU companies these may need to be redrafted to clarify the terms for trade, including VAT changes. If your business employs EU nationals then they should register for settled status. You will need to track the nationality status of employees going forward to ensure compliance with immigration rules and regulations.

 

 

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