There is still a great deal of uncertainty regarding Brexit. If you are a business that trades within the EU you should take the time to create contingency plans. These plans should cover a variety of situations including a ‘no deal’ Brexit. Below are some areas we think will businesses should prepare for in the case of a ‘no deal’ scenario.
If you trade in the EU you will need to start making customs declarations. The government is currently in the process of implementing an electronic customs declaration system, so ensure your processes, and systems are set up to work coherently with the system. Moving forward UK will businesses will need a UK Economic Operator Registration and Identification (EORI) number. You can find the forms here.
Import/ export declarations will have to be made as a result of a ‘no deal’ Brexit, similar to the declarations that currently have to be made when trading outside the EU. Check with your courier whether you need additional information for the declarations. Importers can register for Transitional Simplified Procedures (TSP) deferring declarations and paying duty at the border.
If you have not done so already, take time to map your supply chain. Knowing where inputs come from and what product category they fall into will bring potential tariffs to your attention, so you can plan for them. If you only export to the EU these tariffs will be new and potentially time-consuming. The EU Tariffs can be found here.
The UK intends to keep product standard and regulations in line with the EU at the point of exit on the 31 March. Though the EU may cease to recognise the UK certifications of products in the case of a ‘no deal’ Brexit.
If you have contracts with EU companies these may need to draft contracts to clarify the terms for trade, including VAT changes. If your business employs EU nationals ensure they register for settled status. You will need to track the nationality status of employees going forward to ensure compliance with immigration rules and regulations.