Importing: How will Brexit affect goods coming into the UK from the EU?
There may be impacts on import and export tariffs, VAT recording processes and an increase in administration costs.
If there is no trading deal reached, the UK will regulate imports under WTO (World Trade Organisation) rules.
- There may be delays as new customs borders come into force. The may result in a delay in goods arriving from the EU into the UK. Is this the time to discuss logistic plans with your suppliers and hauliers?
- Does the business need to consider its stock holdings to cover delays in importing, taking into account warehousing and logistical issues.
- Is there an alternate UK supplier that can provide the goods that you need, to prevent delays?
- How will increased stock holdings impact on your cash flow? Do you need to consider contingency finance?
- Does increasing or decreasing stock holdings have an impact on your finance arrangements?
- Do supply contracts need to be reviewed?
Importing: Will paying EU-based businesses be different after Brexit?
As we leave the EU, we may no longer have access to the same banking and financial frameworks.
- As a result, Euro payments may take longer to process. Is this the time to speak with your banking partners and have them advise your business?
- There may be currency fluctuations caused by trading uncertainty. Can you create a financial contingency plan to compensate for the possible fluctuations?
- Has your business considered speaking with your bank about spot rates & currency hedging to assist with the financial planning and costing?
Exporting: How will Brexit affect goods you export from the UK into the EU?
If we leave the EU without a trade agreement, there may be changes in how your goods are classified under the tariff classifications.
If there is no trading deal reached, the UK will regulate exports under WTO (World Trade Organisation) rules
The existing HMRC customs declaration system will be replaced, to manage the increase in expected demand. This system is expected to be launched in early 2019.
- Is this the time to review your export data and revise your export systems?
- Can your logistic partners keep you updated on these changes?
- There may be delays as new customs borders come into force. The may result in a delay in goods arriving with your customers. Is this the time to discuss supply chain planning with your customers?
- Will your customers need to increase stock holdings to compensate for any border delays?
- Do supply contracts need to be reviewed?
Exporting: How can I remain competitive in the EU market after Brexit?
If you have clients in the EU, now may be the time to open a dialogue about how your goods and services are going to fit with their plans for the future.
- Is this the time to understand if your company could be replaced by a non-UK EU supplier? If so, how are you going to compete?
Your business may find it is more competitively priced in EU markets, even taking into account increases in export taxes, once we leave the EU.
- Is it time to do a costing exercise on your products, in light of the scenario of possible increases in VAT on imports and increased regulations around imports?
As we leave the EU, some businesses are looking at markets outside of the EU where UK products and services would be welcomed.
- Are you able to start to seek new market and/or product opportunities?
- There may be fluctuations in demand for your products, both up and down. Are you able to react to changes in demand?
Exporting: Will my EU customers still want to buy from my business after Brexit?
There may be elements of trade protectionism from both the EU and UK markets.
- This may be the time to scope out your EU stakeholders and get their view of how they view UK suppliers and products.
- Do your customers understand Brexit and the implications?
- Are they happy to accept UK quality standards?
- Will product testing standards need to be considered?
- What licencing and EU approvals will your sector need? Will they be difference to the compliance you already adhere to?
- If there are changes to your compliance, how long will it take to comply with any regulation changes and how will this affect you supplying your EU customers?
This may be the time to refer to your sectors professional body or sector representative to gain specialist advice.
Additional resources are being released by the UK government and can be accessed at:
Food & Drink in no deal Brexit
Medical sector if no deal Brexit
Domestic: Do you employ non-UK EU citizens and how will they be affected after Brexit?
- Do you know how many non-UK EU citizens you employ and are their roles critical to the success of the business?
- If you employ non-UK EU citizens outside of the UK, there may be some changes in employment regulations. Is this the time to understand what differences there may be in employment conditions to ensure there are no breach in employment laws?
- Do you have a recruitment plan in place if immigration laws are impacted and you are not able to access the non-UK EU citizens as easily? This plan may need to address a short term issue as well as addressing long term skills issues.
- You may have to consider issues such as automation, accessing skills from other geographical areas and engaging with apprenticeships, to address the long term needs.
- Do you staff have qualifications and accreditations that will still be acceptable to your EU customers, as part of their compliance?
- Do your non-UK EU citizen employees know where to register as an EU citizen working in the UK
- Have you got a communications plan in place to keep all of your workforce up to date on changes in employment regulation?
Domestic: Will the demand change for your products and services in the UK market?
With the changes in the value of Sterling and changes in VAT and import duties, as we leave the EU, goods and services may become more expensive. As a result, there is a possibility that there will be less demand in the UK market.
- How is your business able to adapt to these market changes? Will you still be competitively priced?
- Is it time to revisit your market strategy?
- Are your competitors in a weaker or stronger position than your business? Where is the market opportunity for your business?