Importing or Exporting? 5 Areas to Consider when Preparing for Brexit
This article is for our UK based clients.
For our New Zealand based clients: don’t worry we know there may be Brexit implications (and benefits!) for you also and we will cover these soon, in a separate article.
So for our UK based clients, here are some points to get you started on planning for Brexit.
Do you have any EU contracts where there are delivery time obligations to be met? If so, we recommend that you review the contract terms (and any potential penalties) if any delays occur. Customs delays could become more common once the structure of the UK/EU border is decided.
Are you using a foreign exchange service to protect your income and profitability from currency fluctuations during the negotiation period? If not, give it some thought. Could this benefit your business?
Take a look at the EU Market Access Database. This will help you to research potential tariffs, quotas and other details. For example, duty rates when importing goods. Be aware that current duty rates from non-EU country originating goods could apply to EU originating goods post-Brexit. Here’s a link to the database.
What is the origin of your products?
-Think about all the products you import, their components and raw materials
-Think about whether these goods will qualify as UK or EU origin
-Could you use more UK suppliers to decrease the risk of currency fluctuations and remove duty implications?
Do you currently sell to any non-EU markets or countries that have free trade with the EU? If so, are sales dependent on or influenced by duty rates in that country? Again, if so, give some thought to the impact on your business should the UK lose access to preferential duty rates in that country post-Brexit. You can access a list of EU duty preference agreements here.
Also, here’s a very useful link for you to keep tabs on future agreements on duty preference in relation to country of origin.
There are other areas to consider but this article is intended to get you thinking ahead of time about the implications of Brexit on your supply chain.
If you’d like to know further areas for consideration, or would like to discuss any of the above, please feel free to contact the team at This Way Up. We would be happy to help. Contact details can be found here.