Brexit Preparation

The UK has left the European Union

The transition period deadline is 31 December 2020, so how do I prepare my business for Brexit?
Brexit preparation

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The UK left the EU on 31 January 2020

The transition period deadline approaches for the UK to leave the EU’s single market and customs union.  Negotiations on future arrangements post Brexit, however, are ongoing with no agreement as yet in place between the UK and the EU. The third round of negotiations have recently taken place between the EU and UK, with a further round of talks scheduled for early June.  These are expected to be followed by an exercise that will in turn report to the EU Council on 18-19 June 2020. Businesses need to plan, but many are still wondering how best to ensure the robustness of their supply chain, in the changing face of Brexit. Some of the facts;
  1. European Union Customs Union (EUCU) is a customs union which consists of all the member states of the European Union (EU), Monaco, and some territories of the United Kingdom, which are not part of the EU
  2. The EU, through separate agreements, is in customs unions with Andorra, San Marino, and Turkey, with the exceptions of agricultural goods
  3. The European Commission negotiates for and on behalf of the Union as a whole in international trade deals such as the World Trade Organisation, rather than each member state negotiating individually
  4. Goods flowing within the Customs Union are deemed to be in free circulation and as such, there is no requirement for internal border checks within the union
  5. No customs duties are levied on goods travelling within the customs union, and members of the customs union impose a common external tariff on all goods entering the union
  6. In the absence of individual Free Trade Agreements, the UK EU trade relationship will migrate to a third country trade under WTO Terms
The recent publication of the UK’s approach to implementing the Northern Ireland (N.I.) protocol includes mention of;
  • No tariffs on any goods moving between Britain and Northern Ireland, so long as N.I. remains in the UK’s customs territory
  • No new customs infrastructure in N.I.
  • N.I. will align with the EU SPS rules, including those relating to agri-food goods being placed on the market.

The UK announced its new MFN tariff regime, the UK Global Tariff (UKGT), which will replace the EU’s Common External Tariff on 1st January 2021, at the end of the transition period.

The World Trade Organisation (WTO) is a global international organisation, dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. Trade between countries:
  • Will require import / export declarations
  • Are subject to customs control
  • Must classify those goods for customs purposes
  • Must declare country of origin on all goods
  • WTO defined tariffs would apply to all shipments
  • WTO quotas may apply for certain types of goods

If there is a ‘No-Deal’ Brexit, there will not be a free trade agreement between the UK and the EU or between the UK and other countries and WTO terms will apply. Contact us to discuss your current circumstances and explore how PerformanSC can support you in your Brexit planning.


How is my business affected and how can I prepare?

Every organisation is different, but the areas that need to be considered by every business in their Brexit planning, remain similar. Each question, depending on the answer, will highlight different recommendations in preparation for your business, with some of the key questions being;

    • What will be the impact on my supply chain?
    • Where are my suppliers based and is that affected by Brexit?
    • Are my key customer locations impacted?
    • Where are my products (or components) manufactured and how will that affect my supply chain?
    • Does my product flow through the UK, either coming from suppliers and/or outbound to my customers?
    • What tariff codes are appropriate for my components and finished goods?
    • What happens if there is no free trade agreement (FTA) put in place?

Most companies are planning for some level of physical product delays in their supply chains, particularly in the weeks and months post a potential ‘No deal’ Brexit.  While nobody can tell for certain, businesses hope that any delays will be in the order of days, rather than weeks or months. The highest risk would appear to be in the weeks immediately following a ‘No Deal’ BREXIT, as ports and customs adjust.

    • What kind of delays should I plan for?
    • What are trusted trader programmes and how might they help my business?
    • Will Authorised Economic Operator (AEO) certification be of benefit?

Contact us to discuss your current circumstances and explore how PerformanSC can support you in your Brexit planning.