What are the challenges for exporters to the EU post-Brexit?
In this webinar, we will look at the implications for your business, what it means for your exports, imports and future opportunities.
We will identify the challenges you need to address to successfully export to the EU post-Brexit, including the new rule changes that came into force at the beginning of 2022.
There are two dates available:
Last month we were delighted to join with the Liverpool Library to host a webinar on trading with the EU in 2022.
The webinar covers a number of key topics for businesses, including:
- What changes did Brexit introduce?
- What are the implications?
- Post-Brexit UK-EU trade guide
- What are the opportunities?
Watch the webinar in full below!
Learn more about adapting to the new trading relationship with the EU with our free Post-Brexit Planning Checklist here.
The majority of exporting businesses in a new poll say that the Trade and Co-operation Agreement between the UK and EU in the wake of Brexit is falling short on delivering the benefits it set out to achieve.
The survey, carried out by the British Chambers of Commerce, found that 71% of exporters feel that the new trading arrangement with the EU is not enabling them to grow or increase sales. Only one in eight said it was supporting growth.
Meanwhile, the majority of those quizzed also said that the TCA had increased costs, delays and paperwork requirements, putting UK firms at a competitive disadvantage.
Businesses cited a number of issues with the new arrangement, including a rise in costs for firms and their customers, a lack of resources to deal with new red tape for smaller firms, and an increase in EU customers put off from working with UK businesses over perceived additional trade complexities.
However, some businesses have managed to make light of the TCA, stating that trade had been able to continue without too many significant changes and that it was forcing companies to take a more global outlook with their export strategies.
Head of international trade at the Greater Manchester Chamber, Susana Cordoba, commented on the BCC’s findings that: “As from previous findings, we believe the UK Government must continue to work hard listening to what businesses are facing on the ground and offering practical solutions and support.
Read more: Brexit causing “increased costs, paperwork and border delays”
“Many SMEs are still struggling as they lack the knowledge and skills set to adapt to the new way of trading.”
Free Brexit support for your business
Go Exporting has been working closely with trade bodies and individual firms to help manage and mitigate the upheaval caused by the UK’s departure from the Single Market.
If your business is still struggling to adapt, a good place to start would be our free post-Brexit planning checklist which covers 10 key points including the HS Code, customs declarations and duties.
On the 3rd of March, we’ll be joining Liverpool Library for a free webinar on trading with the EU following the UK’s departure from the European Union.
In this webinar, we will look at the implications for your business, what it means for your exports, imports and future opportunities. We will identify the challenges you need to address to successfully export to the EU post-Brexit, including the new rule changes that came into force at the beginning of 2022.
Presented by Go Exporting CEO Mike Wilson, we will cover the following:
• What are the changes we have seen in our relationship with the EU post-Brexit?
• How do you identify the challenges in your business that you need to consider?
• How do you address the challenges and successfully trade with the EU?
• What are the opportunities brought about by Brexit and how do you make the most of them?
A parliamentary report has highlighted how UK firms have been hit by increased costs and border delays due to Brexit.
The report, created by the Public Accounts Committee, said that it was clear that leaving the European Union was also having an impact on UK trade volumes.
Whilst businesses around the world have reeled from the impact of the pandemic, the report said it was clear that the EU exit was having a negative impact for UK businesses.
PAc chair MegHillier said of the report that: “One of the great promises of Brexit was freeing British businesses to give them the headroom to maximise their productivity and contribution to the economy – even more desperately needed now on the long road to recovery from the pandemic.
“Yet the only detectable impact so far is increased costs, paperwork and border delays.”
The report set out a number of recommendations to the government to support UK businesses within the transition, including:
- Government must set out its scenario planning and modelling for passenger volumes in 2022 and clarify how it will manage the increased pressures and any contingencies that may be required.
- To minimise the costs to business as far as possible.
- Government should identify what issues businesses are facing in relation to the new border requirements and in particular determine how they can provide SMEs with additional support.
- Government should set out departments’ assessment of EU trader and haulier readiness, to determine whether any intervention by either itself or the EU may be required; and set out any plans for additional support.
- Government should continue its efforts to resolve the challenges of the Protocol and ensure that departments are ready to put any negotiated outcome into operation.
Post-Brexit planning checklist
For many firms, this is a confusing and frustrating time, especially for those with limited experience of customs declarations, licenses, VAT on import and rules of origin.
We’ve created a free checklist to help you navigate the choppy waters and adjust to a new trading environment.
UK prime minister Boris Johnson is hoping to ‘unleash the benefits of Brexit’ with a new plan designed to cut red tape for businesses.
The Brexit Freedoms Bill will look to end the specific status of EU law within the UK’s legal framework, ensuring that future laws can more easily be amended to replace carried-over EU regulations.
Numerous reviews of inherited EU laws have been undertaken to see where changes can be made to help businesses invest and create jobs.
Some key areas that could see change include:
- Changes to GDPR and data protection rules
- Updates to laws surrounding genetic modification, clinic trials, transportation and AI
- Slashing red tape for businesses
These changes would look to build on alterations already made by the government out of alignment with EU rules, including the simplification of alcohol duties, scrapping VAT on tampons and creating new subsidy schemes.
Help for businesses
Any reduction in the amount of paperwork and required regulations to follow will be a big help for UK businesses who, since the start of the year, have seen the realities of ‘Brexit for real’ take hold as the transition period came to an end.
Importing and exporting firms, in particular, have seen a massive amount of upheaval with new requirements around the HS code, customs declarations, rules of origin, pre-notification of imports, VAT and Incoterms (just to name a few!).
At Go Exporting, we’ve created a free guide on the key changes since Brexit for UK businesses to help guide you through the new trading relationship. You can download your copy right here.
Ports in the UK have started the New Year under new rules with thousands of additional staff being deployed to help mitigate potential delays.
As of the 1st January, traders now must meet full customs requirements including submitting declarations, paying VAT and exercise duty and also submitting new notifications surrounding animal products.
This next phase of the UK’s departure from the European Union and Single Market is a big step for ports and businesses alike and marks the end of the transitional period for most firms.
Chief executive of the British Ports Association, Richard Ballantyne, commented on the shift that: “This is another milestone for those involved in trade between Britain and Europe and we are hopeful importers will be ready to follow the new rules. There has been a huge amount of hard work from industry and government preparing new systems and processes, which have been developed at some pace. We are optimistic that these new arrangements will work although do expect there to be a small degree of teething difficulties.”
Read more: Rules of Origin guide & workbook
He continued: “That said, in terms of physical activities, much of the customs processes are relatively straightforward. Most UK ports with European trade are therefore more focused on the introduction of checks on animal and plant-based products at Border Control Posts, next July. This is where there will be significant changes to borders processes with the likelihood of interventions, delays and even extras costs for British importers.”
For more help and advice on what your business needs to be doing post-Brexit, download this free planning checklist.
Analysis commissioned by The Independent has discovered that the combined benefit of all the new trade deals signed in the wake of Brexit ‘barely scratch the surface’ compared to the economic damage caused by leaving the EU.
The boost from new deals, notably those with Australia and New Zealand, amounts to just 0.01-0.02 of GDP – or less than 50p per person.
However, data from the Office for Budget Responsibility shows that the damage caused by leaving the single market is worth more than £1,250 per person.
The Independent reports that the majority of new FTAs signed by the UK government, including those with Singapore and South Korea, are merely replacing treaties that the UK had already previously enjoyed as a member state.
However, a spokesperson from the Department for International Trade commented on the new report that: “Our Global Trade Outlook – published in September – shows the centre of gravity on global trade is moving away from Europe and towards fast-growing markets in Asia-Pacific.
“Our strategy is latching the UK economy to these markets of tomorrow, and seizing the huge economic opportunities as an agile, independent trading nation.”
Read more: UK exporters coping with new rules but wary of future changes
However, academics from the UK Trade Policy Observatory noted that any new trade deals the UK signs would never conceivably cover the economic losses of Brexit.
They noted that: “Non-EU partners account for about half of UK total trade and so, to counteract the OBR’s 4 per cent loss from Brexit, would require agreements with each and every one of them to induce trade changes that create a 4 per cent increment to UK GDP. That is nowhere in sight in the numbers in the table.
“The sad answer is that the government is happy to accept, on our behalf, the economic losses from Brexit in return for political benefits (sovereignty), and trade agreements with other countries are merely making the best of a bad job from an economic perspective.”
One of the biggest changes for UK firms trading with the EU since Brexit has been Rules of Origin.
In order for firms to claim zero duty, they must be able to prove that goods are predominantly of UK or EU origin. These are complex rules, and something that we created a detailed guide and workbook to help businesses understand what these rules are.
Earlier this month we joined Enterprise Nation for a Lunch + Learn event all about rules of origin and how new rules are about to bite as we head into 2022 and discussed in detail the requirements and how you can probe the origin of your products.
Watch the event in full on the Enterprise Nation website here.
A new poll has found that UK firms are starting to get to grips with new rules since Brexit, but are wary of potential additional changes to come.
Conducted by the Institute of Export & International Trade, the poll found that 70% of respondents are confident trading with the EU, albeit only 10% said they were ‘very confident’.
The proactivity of local firms has also been shown with almost two-thirds of businesses saying they’ve arranged additional training to adjust to the new post-Brexit rules and processes, with half of that support being from outside specialists such as a customs consultant, whilst two in 10 firms have also hired additional staff.
Whilst a brighter business outlook than some may have thought, there is nervousness about what trading with the EU will look like when new import measures come into effect starting on 1st January next year.
Half of those quizzed said they are not confident that trade between the EU and UK will be trouble-free when customs declaration rules change, with just 5% saying they are highly confident that there won’t be any disruption.
Director general of the IOR&IT, Marco Forgione, commented on the poll findings that: “The past year has been a period of adaptation for UK businesses engaging in trade with the EU. Confidence in exporting to the EU has grown over the past 12 months, as companies have undertaken more training and education.”
Read more: UK becomes smaller international trader since Brexit
He continued: “The IOE&IT has been supporting businesses through this year, delivering technical support, guidance and most importantly training, to ensure British exporters can trade both confidently and compliantly.
“As the Brexit timeline moves on, the next crucial date is 1 January 2022. The Institute stands ready to support importers implement these new changes and help them navigate them effectively.”
