With the continued uncertainty around Brexit, businesses that buy and sell from the EU should continue to plan for a worst case scenario.
In the event that the UK exits the EU without a deal, many UK businesses will need to apply the same processes to EU trade that apply when trading with the rest of the world.
Here are some of the areas you may want to consider, particularly if you import or export goods to the EU. The checklist also considers general implications of a “no deal” Brexit.
- EORI - Do you have your GB EORI number? Have you considered whether you require an EU EORI number?
- Commodity codes - Have you collated the commodity codes applicable to your traded goods and checked the level of the potential tariffs?
- Transitional Simplified Procedures – Have you considered whether the TSP arrangement will ease the initial impact of Brexit on your business? TSP will allow a business, which has customs duty to pay, to delay the requirement to submit their 1st customs declaration until 6 May 2020 and monthly thereafter.
- Duty Deferment Account – If you are using the TSP arrangement, you will require a duty deferment account to allow you to defer the payment of the 1st duty liability until 15 May 2020 and monthly thereafter. To avail of this facility, you will be required to provide a guarantee for the duty you defer.
- Customs Procedures – Have you considered whether customs procedures could ease the impact of Brexit on your business? Such arrangements include inward/outward processing, temporary admission, customs warehousing, transit procedure.
- Submission of Customs Declaration – Have you considered who will complete your customs declaration? Will you use a customs agent or complete them in house? If you decide to complete them in house, you need to have the correct software and staff adequately trained to complete the returns.
- Changes to Supply Chain – Have you review your supply chain and considered whether any changes can be made to avoid potential tariffs? Have you considered the impact on your customers & whether they will continue to trade with you if they are potentially liable for duties? Can you remain competitive?
- Contracts – Have you reviewed your contracts with suppliers/customers to determine whether your business is liable for clearances and duties?
- Product Certifications and Licences – Are your product certifications adequate post Brexit? Do you require a licence to export your goods post Brexit?
- Movement of People – Have you engaged with your EU26 national employees to ensure they have made an application via the UK’s EU Settlement Scheme, to evidence their right to live and work in the UK? Have you considered the impact on your business of the proposed minimum pay threshold of £30,000 for skilled workers?
- Cashflow Impact – Have you considered the impact of tariffs; additional administration costs and bulk buying will have on the cashflow of your business?
- Grants – There are several grants available to support businesses deal with the impact Brexit may have on their business. Please contact our Brexit team for further details of funding that may be available to you.
Whilst every effort has been made by CavanaghKelly to ensure the accuracy of the information here, it cannot be guaranteed and neither CavanaghKelly nor any related entity shall have liability to any person who relies on the information herein. Information given here is for guidance only. Detailed professional advice should be taken before acting on any information contained herein. If having read the guidance here, you would like to discuss further; a member of our team would be pleased to help you.