At almost the last minute, the trade deal between the EU and UK has been agreed by the negotiators. It just now needs ratifying by the respective parliaments, which may be a challenge. EU ambassadors have given their OK and the UK parliament will discuss this week.
As in any discussion, not everyone will have gained everything they wanted, but broadly the deal seems to be positive for trade between the parties. The avoidance of duties and quotas on goods can only be applauded and a collective sigh of relief for all exporters and importers.
In previous articles, we have written about the hidden threat of Rules of Origin. This also seems largely to have been resolved with an agreement on full bilateral cumulation which allows EU inputs and processing to be counted as UK inputs in UK products exported to the EU, and vice versa. This is an extremely important simplification which will avoid countless headaches and supply chain issues.
So, all relatively positive, but considerable changes to the way the EU and UK trade with each other will nevertheless come into effect from 1st January 2021. If you are one of those companies who were hoping it would all go away with a trade deal or were waiting for certainty before finalising your planning for Brexit, well now is the time to get ready. There are still significant changes coming for your business which cannot be avoided.
Some of the important procedures and requirements you need to be ready for are:
- EORI Numbers including the XI number for Northern Ireland
- Customs Declarations on all imports and exports
- Changes to licence and certificate requirements, such as sanitary and phytosanitary rules
- Rules of Origin – there may be an agreement on bilateral cumulation, but you still need to understand the requirements to prove and indicate the origin of your product.
- VAT Changes – do you need a local Vat number and fiscal representative, changes to MOSS
- Incoterms – have you agreed with your customers and suppliers the exact terms of future trade? Don’t get caught out with charges you were not expecting.
- Approvals and UKCA/CE Marking – are you aware of the changes and requirements for your products?
- Who is going to be the Importer of Record and are they prepared for the implications and responsibilities? Would you benefit from an Authorised Representative?
- Do you sell via eCommerce across borders? Are you aware of the implications for VAT, for data handling etc
We could go on, but you get the picture. There is a lot of change coming and you need to be ready for it.
Go Exporting can help you prepare for Brexit with our FastTrack Review. We look specifically at the implications for your business and provide you with a detailed action plan to follow. If you are not ready, you will need to act fast to avoid disruption to your business.
Call us today on 0800 689 1423 for fast turnaround support to prepare your business. Then let’s start looking forward to taking advantage of the new world of opportunities that are about to emerge.
Queues at UK ports, especially Dover, Felixstow and Southampton, have been increasing as pre-Brexit stockpiling efforts from businesses on both sides of The Channel were compounded by a new strain of Covid-19.
Some tailbacks have been longer than 10 miles last week as companies had been buying and selling additional components and goods in a bid to avoid increased levels of bureaucracy at the end of the transition period – now just 10 days away.
What started as queues relating to business activity has been compounded by health and political action, with France closing its border with the UK for 48 hours to assess the new strain of Covid found in Southern England. The move means no lorries or ferry passengers are allowed to sail from the port of Dover. Operation Stack, the post-Brexit plan to create a lorry car part in Kent, has been put into operation early as a result.
Unaccompanied freight in the form of containers can still be transported, but there are fears in the UK that French drivers won’t make the journey if they could get stuck, whilst exported goods and empty lorries returning to the continent face lengthy delays.
Read more: Business groups urge Brexit negotiators to find compromise and agreement
Elsewhere, the Confederation of British Industry has called on the EU to delay introducing new customs checks immediately after Brexit as firms are still unprepared due to the pandemic.
In a report published on Friday, the CBI stated that: “With time so short, both sides need to take steps to minimise disruption no matter the outcome.
“Without them, much of the progress made recovering from the pandemic will be lost.”
If your organisation is one of the thousands who have been unable to fully prepare for Brexit, then our Brexit FastTrack service could help you #BeBrexitReady, and fast. Find out more here.
Food and drink exports from the UK have fallen by 12.9% so far in 2020 as manufacturers struggle to deal with the Coronavirus pandemic and uncertainty surrounding Brexit.
The data, released by the Food and Drink Federation, showed that exports to key markets including Spain were significantly down (almost 34% into the Spanish market), whilst sales of the otherwise export success story of whisky dropped the most – down 19% to just over £900 million.
Q3 2020 saw an 11.6% exports decline compared to the same period last year, with both exports to the EU and non-EU markets falling.
Head of international trade at the Food and Drink Federation, Dominic Goudie, commented on the findings that ensuring a quick return to growth will be essential to the industry as the UK looks to continue its economic recovery from the pandemic.
The UK’s food and drink sector is also struggling to find enough vets, an issue which could cost up to 75% of trade volume into the EU from next year.
Export health certificates must be signed by an official veterinarian to confirm that certain food or animal products meet import requirements, but a lack of qualified and available official vets in the UK could see delays.
In September this year, the British Meat Processors Association warned that Britain simply doesn’t have enough vets to deal with export inspections post-Brexit, with chief executive Nick Allen commenting that: “We have been pressing the Government for three years now to lay out the details of exactly how these barriers to trade will be dealt with. They have known since the beginning that we will need an army of extra qualified vets to cope with the 500% increase in workload.”
Read more: Brexit offers ‘best chance’ of banning live animal exports
“All the guidance in the world is useless if we are not able to complete required export paperwork because of a chronic shortage of vets. If this is not addressed, £175 million per month of meat exports will be at risk.
“The bottom line is that British companies cannot prepare effectively for Brexit because the UK Government is not keeping to its side of the bargain by putting in place the right measures and resources and failing to give us the answers we desperately need.”
If your organisation is one of the thousands who have been unable to fully prepare for Brexit, then our Brexit FastTrack service could help you #BeBrexitReady, and fast. Find out more here.
Company bosses from some of the UK’s leading firms have warned UK Brexit negotiators against brinkmanship as talks look set to resume following a stand-still earlier this week.
As Boris Johnson and Ursula von der Leyen were called in to bridge a gap both negotiation parties were struggling to close, business leaders have warned that firms are already overwhelmed by dealing with the ongoing pandemic and that clarity on trading arrangements with the EU are urgently needed with just weeks to go.
Deputy director of the CBI, Josh Hardie, commented on the latest talks: “We always knew the political leaders would have to step in. It is essential they do that. The political brinkmanship and delay is paid for by communities.”
Less than a month ago, leading UK business groups from across industry sectors urged Brexit negotiators to find compromises and find agreement in a bid to avoid a no-deal exit on January 1st.
Over 70 groups, representing millions of workers from across automotive, aviation, chemical pharma, tech and FinTech sectors have been alarmed by the stop-start nature of talks, and have warned that securing an agreement with just days until Brexit for real ‘matters greatly for jobs and livelihoods’.
A poll last month by the Institute of Directors showed nearly one in four companies would not be ready for the end of the transition period, whilst only half said they were fully prepared. Preparations have without a doubt been hampered by the ongoing pandemic, with smaller firms, in particular, struggling to juggle both the immediate threat of Covid and the upcoming impact of Brexit.
Read more: Over 40% of importing & exporting SMEs have made no preparations for Brexit
Richard Torbett, CEO of the Association of the British Pharmaceutical Industry, commented then that: “With each day that passes, business resilience is chipped away.”
“It is absolutely clear that it’s in nobody’s interest — and certainly not patients — to face the future with uncertainty around how medicines will be regulated, tested and moved throughout Europe and the UK.
If your organisation is one of the thousands who have been unable to fully prepare for Brexit, then our Brexit FastTrack service could help you #BeBrexitReady, and fast. Find out more here.
At the time of writing, there are just 33 days until the end of the transition period. And whilst 2020 has been incredibly difficult for businesses across sectors, Brexit will wait for no company.
Research recently released from Aldermore found that 47% of SMEs who import goods and services from the EU have made no Brexit preparations, whilst 43% of small firms who export into the EU have yet to act either.
Group managing director of business finance at Aldermore, Tim Boag, commented on the findings that: “2020 has been an extremely difficult year for SMEs, as many have been profoundly impacted by the Covid-19 pandemic.
“With the Brexit transition period coming to an end on 31 December, businesses who trade with the EU now face a new set challenges, particularly if there is no-deal. Tariffs could be introduced on many imports and exports, which will have an impact on costs for businesses, and even if a trade deal is agreed there’s still likely to be significant changes to prepare for, such as additional checks and documentation on goods as required by both the UK and the EU.”
The average SME derives around 30% of their revenues from business and customers in the EU, and one in four small business owners say the think Brexit will worsen the economic trauma already faced in mitigating the pandemic. However, only 15% think there will be supply chain issues, despite some UK ports already struggling this winter to deal with Christmas demand.
Read more: Visit our free Brexit Knowledge Bank for free Brexit downloads, webinars and advice
“Our research reveals that many SMEs are generally unprepared for Brexit or are delaying plans to address the impact until after the end of the transition period. Whilst the delay in preparing for Brexit is understandable given the ongoing impact of the pandemic, the potential wide-ranging effects of Brexit on many businesses means it’s crucial that SMEs begin to take steps to prepare,” Boag continued.
“Businesses should consult the Government’s guidance for SMEs post-Brexit and work out how VAT, tax and duty, and other regulatory changes will impact them and their supply chain. Aldermore has created a Brexit hub with key information for businesses to help SMEs best prepare for the transition and the challenges and opportunities that lie ahead.”
If your business is one of the many who has yet to properly prepare for Brexit, now really is the time to act. At Go Exporting, we’ve developed a Brexit FastTrack service which will deliver a comprehensive Brexit impact review and transition plan for your business. Prices start from just £950 – find out more here.
This month (November) we hosted a webinar as part of Business Wales’ Excelerator Consortium’s growth programme looking at how the Brexit Transition will affect business strategy.
Watch the full webinar below, and learn more on the Excelerator Consortium’s YouTube channel here.
Learn more about preparing your business with our free Brexit Knowledge Bank, or seek a fast, cost-effective audit with our Brexit FastTrack service.
Over the last few months we’ve joined Business Wales for a webinar series supporting local companies to navigate Brexit and the road ahead.
This episode looks at the upcoming end to the EU transition period and asks whether your business is ready.
What are the implications at the end of the transition period?
How do you identify the specific challenges to your business?
How do you address the challenges and maintain your exports, and what are the opportunities and how can you make the most of them?
Watch the webinar in full below and watch even more great business advice content over on Business Wales’ YouTube channel here.
Watch more Brexit webinars and learn more about how your business can prepare in our free-to-access Brexit Knowledge Bank.
The National Audit Office has warned in a new report that it is ‘very unlikely’ that every company that deals in UK/EU trade will be fully prepared for the end of the transition period, saying that flaws in the Government’s Brexit planning will likely lead to significant disruption.
The report says that a lot of attention has been paid to firms importing from the Single Market with the Government looking to ease administrative burdens on UK firms and that it won’t be applying full import controls from January first – even if a free trade agreement has been established before then.
This will support businesses importing goods from Europe, but less attention has been given to UK companies who primarily deal in exports into the Single Market, with the National Audit Office warning that a ‘reasonable worst-case scenario’ could see anywhere from 40% – 70% of lorries not being ready to meet EU customs requirements.
Read more: UK auto firms spend £735m on Brexit preparations, warn of no-deal damage
The National Audit Office said with its’ report that: “Despite the funding being committed by government, there remains significant uncertainty about whether preparations will be complete in time, and the impact if they are not.”
The British Exporters Association agrees with this assessment, noting that the Government has prioritised imports and that exporters have encountered poor communications with guidance lacking detail or definition – even misleading.
Is your business fully prepared for Brexit? See how our Brexit Audit services can help you get Brexit-ready. For more news and insights, check out our Brexit Knowledge Bank.
Automotive firms in the UK have spent over £735 million preparing for Brexit, with over £235m already having been invested this year.
That’s according to research from the Society of Motor Manufacturers and Traders (SMMT), which published its figures alongside a last-minute plea fo the Government to agree a zero-tariff, zero-quota trade agreement with the EU.
It says a no-deal scenario could cost the UK auto industry almost £50bn over the next five years.
Mike Hawes, chief executive of SMMT, commented that: “As the UK-EU FTA (free trade agreement) negotiations enter the endgame, now is the time for both sides to deliver on promises to safeguard the automotive industry.
“Securing a deal is absolutely critical but it cannot be any deal.
“To work for UK automotive, it must deliver for UK products and that means securing the right terms and conditions that allow our exports – now and in the future – to be zero-tariff and zero-quota trade.”
“A deal that failed to achieve this would be the equivalent to no deal at all, devastating jobs and slamming the brakes on the UK’s ambitions to be a world-leading manufacturer and market for electrified mobility and battery technologies.”
SMMT reports that 67% of companies across the auto sector are doing everything they can to prepare for new Brexit processes come January 1st next year, whilst seven in 10 have secured new identification numbers.
Is your business fully prepared for Brexit? See how our Brexit Audit services can help you get Brexit-ready. For more news and insights, check out our Brexit Knowledge Bank.
Over half of Irish businesses have admitted they’re struggling to understand new customs clearance procedures that are due to come into effect next year.
That’s according to a survey by customs clearance service Declaron, which quizzed 300 Irish firms on their Brexit preparedness.
The survey also found that nine in 10 medium to large companies had seen Brexit preparations hit by Covid management, with 37% overall saying they have yet to start planning for the UK’s departure from the single market at all.
Declaron CEO, Michael Nolan, commented on the survey results that: “There are certain steps that every business must now take to be able to import and export with effect from January 1 and inaction now puts the efficiency of their trading with the UK at risk.”
Nolan urged firms to not stop their preparations given that Brexit with delivering ‘guaranteed tasks’ what Irish businesses will need to deal within just a few weeks time – predominantly in the form of creating and submitting customs declarations.
Read more: Canada or Australia – what are the benefits and shortfalls of each type of trade deal?
Carol Lynch, Declaron director and partner in BDO warned that Irish firms are sleepwalking into a ‘trade agreement trap’.
“Even when a Trade Agreement is concluded, there will still be a requirement for import and export declarations. The agreement only means that customs duties may not be payable. Compliance obligations actually increase rather than decrease. The delay in the service agreement being finalised cannot be seen as reason to delay preparations.”
Is your business fully prepared for Brexit? See how our Brexit Audit services can help you get Brexit-ready. For more news and insights, check out our Brexit Knowledge Bank.
