Brexit - Postponed until November 1, 2019
In our previous article ‘Brexit – Postponed?’ we recommended companies that hadn’t prepared for Brexit yet to have a good look at the effects this may have on their supply chain. With this new date, there is still some extra time for these companies to get prepared.
The EU is the UK’s largest trading partner. Official UK statistics show that 44% of all UK exports went to the EU in 2017, while 53% of all UK imports came from the EU. As a bloc, EU countries sell more to the UK than vice-versa.
A hard Brexit leads from EU regulations to WTO rules
The British government acknowledges that with no exit agreement in place, the EU would consider the UK “a third country for all purposes”. It has published details of its own no-deal preparations.
Trade rules change from those of the European Union – based on its single market and customs union – to those of the World Trade Organization (WTO). WTO rules mean that each member must grant the same market access to all other members – except developing countries and those that have Free Trade Agreements. With this new date (November 1) you still have time to:
- Investigate the impact when you buy products or materials from the UK and what might be the effect (preferential) origin related.
- Set-up a proof of origin procedure for goods coming from the UK.
- Replace suppliers declarations by a Certificate of Origin. Preferential proof of origin is not applicable when there is no Free Trade Agreement in place.
- Replace EU (UK) origin in your administration by UK origin.
- Consider what the best option is for transportation.
- Change Incoterms.
- Set-up an export- and/or import declaration process.
- Set-up licenses and registrations.
- Investigate what the effect will be if transport will be delayed at the border.
Easing trade flows
The British government states that it has reached agreement to ease trade flows in the event of no-deal. By successfully negotiating continued membership of the Common Transit Convention (CTC) after Brexit, customs declarations will be made and import duties will not be paid at border points but at the final destination.
If you need any help regarding export declarations (not only Brexit related), feel free to contact us or have a look at the website of our new brand ‘Uitvoeraangifte.com’. The webshop of our new brand is live since April 11.