How To Prepare Your Business For Brexit

UK businesses  need to prepare for Brexit. At this stage no one quite knows where we will be on the 29th March but we do know that without a deal, trade with the EU will bring about major adverse changes.  UK traders will of course, want to continue trading with their established EU partners. Likewise, EU traders will want to strengthen trading ties with their UK partners.

Until now, inter EU trading has been a very easy process, with minimal customs involvement, open borders, unimpeded deliveries, largely paperless and declaration of VAT post delivery just to mention some of the advantages we had as a member of the EU.

Life After Brexit and International Trade

With a hard Brexit, this frictionless trading will come to an end and the UK will be thrown into the world of International Trade, with all its impositions, rules and regulations trading under WTO rules and tariffs. Our EU trading partners will have the same status as any of our other international trading partners outside the EU such as Russia and will have to follow the same Customs procedures such as declaration on the new CDS system, which is replacing the old CHIEF system. This means that consignments will need to be given specific statuses of Route 1, 2, 3, or 6, all of which are time consuming. This could cause severe delays at the UK border for EU member consignments, some predicting up to six hours.

A Brexit Checklist

However, UK traders can be prepared and grasp this as a great opportunity to become part of a global explosion in trade. UK businesses must identify how Post Brexit will affect their trading position within the EU and beyond and be prepared to meet the new challenges.

The following are a set of questions that is advisable to ask yourself and research, pre-Brexit. Be proactive, no reactive and prepare for a worst case scenario Hard Brexit now. Waiting for the 29th March 2019 may well be too late.

1. Understand how to export. How will the new Import/Import regulations impact upon my business?

2. Will I have to change my Terms of Delivery (Incoterms 2010)?

3. Will I now have to employ the services of a freight forwarder/ clearing agent and at what additional cost?

4. Does my company have the necessary import/export training to work alongside the new rules and regulations?

5. Am I registered for EORI status?

6. Do my goods attract an Import/Export licence?

7. Can I identify a Customs regime which may help me reduce my import costs?

8. How will VAT be collected on inter EU trade?

9. Do I understand the new Customs Declaration System CDS for Imports/Exports?

10. Can I provide the relevant information for inputs into CDS (i.e. new tariff changes as introduced in Volume 3 of the Tariff)?

11. Have I subscribed to the Government Gateway Account?

12. Will my existing supply chain timing be affected? What adjustments do I have to make to counter any extra delays?

13. Will I have to make changes my company Terms and conditions?

14. Will Post Brexit rules affect my competitive edge? If so how can I retain my competitive edge?

15. Will my existing EU customers impose a different method of payment other than the one currently in use?

16. Do I fully understand the methods of payment associated with International Trade (ie. Letters of Credit, CAD, Bills of Exchange)?

17. Have I arranged for an AWARENESS COURSE for ALL members of staff to attend pre-Brexit 29th March 2019?

Check out our top ten tips on on importing and exporting to get you started.

The Brexit Breakdown

A new subscription service where we do the research, contact relevant agencies and get to the bottom line on Brexit import and export.

We cut through the complicated web of information to give you need-to-know facts for your business, post Brexit, keeping you informed through webinars, videos, email alerts and printable fact sheets.

See The Brexit Breakdown for more information.

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