Brexit: Is your business prepared for the end of the Transition on 31 December 2020?

23 Oct 2020

Regardless of whether or not there is a Free Trade Agreement with the EU there will be an increased workload, mainly administration, for importers and exporters alike. There are many ways the end of the transition period could impact your business, including Incoterms, employees, contracts, FX strategy, product approvals.

Click here to take the new GOV.UK survey to see what you should be doing NOW to prepare your business for the end of the Transition period

Action is required now in order to be prepared for 1 January 2021 and most of the information you need can be found on the HMG website at www.gov.uk/transition but here are some top tips to check NOW:

Top 20 Tips for Brexit Preparation (with relevant links – taken from Chris Buxton bulletin of 21.10.21)

1)            Obtain your company EORI (Economic Operators Registration and Identification) number  www.gov.uk/eori

2)            Assess whether you would benefit from AEO (Authorised Economic Operators) status and apply if appropriate https://www.gov.uk/guidance/authorised-economic-operator-certification

3)            Check the new UK Global Trade Tariff for your products and assess any new EU Tariffs https://www.gov.uk/check-tariffs-1-january-2021

4)           Review suppliers and your supplier contracts, agree required post-Brexit changes including prices and responsibility for tariffs https://www.gov.uk/check-tariffs-1-january-2021

5)            Contact your freight forwarder and form a close relationship – they are a rich source of help and guidance.www.gov.uk/guidance/list-of-customs-agents-and-fast-parcel-operators#list-of-customs-          agents

6)            If you are an importer, set up a duty referral account with HMRC www.gov.uk/government/publications/import-and-export-deferment-arrangements- application-for-approval-c1200

www.gov.uk/prepare-to-import-to-great-britain-from-january-2021

7)            In case of a No-deal outcome – check and assess the implications of WTO (World Trade Organisation) rules and tariffs for your products https://www.gov.uk/guidance/trading-under-wto-rules

https://www.wto.org/english/thewto_e/whatis_e/tif_e/fact2_e.htm

8)            Check and apply for any new licences, permits or approvals that you may require.

https://www.gov.uk/guidance/placing-manufactured-goods-on-the-market-in-great-britain-from-1-january-2021

https://www.gov.uk/guidance/placing-manufactured-goods-on-the-eu-market-from-1-january-2021

9)            Review and plan for the impact of the new UKCA and EU CE Mark regulations and time line. Include the role of UK and EU notified bodies.

https://www.gov.uk/guidance/using-the-ukca-mark-from-1-january-2021

https://www.gov.uk/guidance/conformity-assessment-bodies-change-of-status-from-1-january-2021

10)          Monitor the development of the new Border Operating Model (BOM) and be ready to comply
https://www.gov.uk/government/publications/the-border-operating-model

 www.gov.uk/prepare-to-export-from-great-britain-from-january-2021

 www.gov.uk/prepare-to-import-to-great-britain-from-january-2021

11)          Ensure packaging and labelling is compliant with new regulations https://www.compliancegate.com/european-union-packaging-materials-regulations/

12)          Review and prepare for Customs & VAT procedures from 2021 and prepare paperwork and record keeping requirements from 2021 https://www.gov.uk/topic/business-tax/import-export

13)          If you sell to Northern Ireland/Eire review the Northern Ireland Protocol and prepare for the changes.  Register for the Trader Support Service www.gov.uk/guidance/trader-support-service

14)          Review your tracking and certifying of Certificates of Origin and monitor Government regulations on Rules of Origin (ROO)

www.gov.uk/guidance/rules-of-origin

https://www.cer.eu/insights/brexit-and-rules-origin-why-free-trade-agreements-%E2%89%A0-free-trade

15)          Review the Brexit effects on your cashflow due to VAT, Working Capital, prices, tariffs, administration and storage costs

16)          Ensure staff (department by department), are prepared and fully trained for the new arrangements.  Also profile the nationality of your workforce to ensure continuity.

https://www.gov.uk/uk-nationals-living-eu

https://www.gov.uk/settled-status-eu-citizens-families

https://ec.europa.eu/social/main.jsp?catId=471            

17)          Review logistics and stockholding arrangements. Will just-in-time be feasible or is a buffer stock required? (in the short / medium term)

18)          Check your data protection liabilities post January 2021

https://ico.org.uk/for-organisations/data-protection-at-the-end-of-the-transition-period/

19)          Analyse the potential in markets outside the EU incl. size of market, barriers to entry, country risk, currency, route-to-market options. Grade each country to set priorities.

20)          Review if you need a customs broker and appoint accordingly https://www.export.org.uk/page/CustomsBrokerRegister

If you have any major concerns or questions regarding Brexit preparations please contact Chris Buxton on ChrisBuxton@bfpa.co.uk or call him on 07787 400747

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