*UPDATED – 04/02/20
Brexit has been “delivered”, but we are now in a transition phase that will last up until at least the 31/12/2020, though it could be extended beyond this date. For now, everything stays the same, more or less. But knowing that this transition period will conclude at some point, Importers will need to prepare for the new relationship that is built through ongoing negotiations that the UK will have with the EU.
*due to the nature of how information regarding the UK’s exit from the EU is being released, and its tendency to change at the drop of a hat, we cannot be help liable for any inaccuracies regarding the below.
WHAT WE KNOW SO FAR
As an importer or exporter of goods to and/or from other EU member countries, the one key benefit that has a direct impact on your supply chain management will be our current free access to the EU single Market. It effectively allows you to trade and transport goods within the EU with no tariffs or duties to pay. We still benefit from this in the transition period, but whether we continue with similar benefits or something else entirely will be decided during the ongoing negotiations. Should we end with a “no deal” scenario or something similar, then more bureaucracy and the implementation of tariffs may be put in place, slowing down the speed at which you can move your goods and increasing the costs to do so. Partnering up with a well established Freight Forwarder such as Banks & Lloyd can help lessen the impact of any such changes.
The UK left the EU on 31/01/2020 at 23:00. We are now in a transition period that will last at least until 31/12/2020
Brexit can no longer be delayed as it has happened, but the ultimate effects of it can. As long as we remain in the transitional period, we will keep much of the same relationship with the EU than we had when we were a member, namely no tariffs or additional customs. The deadline to decide if this period will be extended is 30/06/2020. If no extension is agreed before this date, then the transition period will end on 31/12/2020,
Trying to separate the rhetoric from the actual intentions is becoming increasingly difficult, but as it stands it looks like a “Canada Style” deal is what is being aimed for.
What does this mean? Well, in short, it means no tariffs but customs will be in place – so expect a slow down at the border and extra bureaucracy to deal with. We at Banks & Lloyd deal with all our customs clearance in-house, so it would be one less thing to worry about if you used our services.
Yes – if negotiations get nowhere, a stalemate is reached and the transitional period is not extended, then our new relationship will be on default WTO terms. We would like to believe that this is in no one’s interest and would be avoided at all costs.
It is important to have a clear understanding of what the first day of a “no-deal” Brexit would look like. HMRC has published multiple documents outlining such things. You can find these items here – Partnership Pack
It can be quite hard to digest and filter all the documents into what is relevant for yourself. Thankfully the Government have also released a tool to help locate any such documents more easily. You may still return with what feels like an overwhelming amount of information, but we highly recommend finding time to go through as much as you can. The tool can be found here – Prepare your business for leaving the EU
We have consolidated the information to make it as digestible as possible, and have listed below the key points you will want to consider if EU members play a key part in your supply chain management. It is not a “one glove fits all” situation however, which is why we recommend you still use the tools provided by the government to be as best prepared as you can or alternatively, if you have any specific scenarios or concerns that are not covered here, to email our Brexit team at email@example.com or by filling in the form below
With Banks & Lloyd being a member of BIFA (British International Freight Association) we have access to an insight on how the Transport and Logistics Industry, the key factors that keep your supply chain moving, is forecast to look from the Brexit negotiations and how this will impact us all, and what we can do to prepare and plan around it.
Questions and Queries on Brexit…