The brexit: what you can do
Brexit negotiations are approaching a critical phase and whilst the UK and the EU continue to work towards an postitive outcome, we all need to make preparations for the worst scenario: a no-deal brexit. What you can do to limit the negative consequences? You read it here!
What is going to happen?
As of March 30 2019, the United Kingdom no longer belongs to the European Union. However, the conditions of this departure are not clear yet. In short, there are three possible scenario’s: hard brexit, soft brexit and the no-deal brexit. With the hard and soft brexit, a deal has been made and agreed on before the 29th of March. In these cases there will be a transitional period in which the EU and the UK can make new arrangements about their future trade. Until the the 31st of December all will remain the same and you will have time to arrange the necessary. If however, the UK leaves the EU without a formal agreement, there would be an immediate change to the way business is done between the EU and UK. Customs formalities will be required and goods must be declared on import and export. Import tariffs will apply according to the rules of the World Trade Organization. Shipments to the UK will no longer be considered as intra community supplies but will be considered as export and would be zero rated. In addition, due to these rules and formalities, the costs of transport will most likely increase and the duration of shipments will be longer.
What can you do?
Whether it will be a ‘deal’ or ‘no-deal’ brexit will probably be known only very shortly before the official brexit date. In order to avoid unpleasant surprises, organizations such as TLN, evofenedex, the national government and customs companies, advise to prepare for the no-deal scenario. This scenario will have a major impact on your business and on transport to and from the UK and Ireland. To be well prepared we advise you to do the following:
- Make an inventory of the consequences for your trade with the UK;
- Do the Brexit Impact Scan;
- Register for an EORI number if you do not have one yet;
- Check how to complete customs declarations. This can be done by yourselves or you can appoint a third party to submit your customs declarations;
- Check your agreements with your relations in the UK. We ship DAP, which means that your customers have to pay import duties and local VAT;
- Check the product requirements. The CE mark may no longer be valid in the UK after the brexit;
- Check your goods file and determine whether you may have to deal with export certificates or export licenses.
For the transport and the preparation of the customs documents, it is important that you submit a commercial invoice with the EORI numbers of the (physical) exporter and importer, VAT number, quantities, weights (gross/net), description of the goods, HS code per product, delivery conditions and the value of the goods with the correct currency. This invoice must have an original company stamp and an original signature, written in blue ink.
First aid with the brexit
No worries about your logistical back office, that is what FS stands for. As an organization, we prepare ourselves for the ‘no-deal’ scenario and we make sure that we can also be of service to you after the brexit. In addition, we are happy to help you with your preparations. If you have any questions about the brexit, please visit the website of CTS GROUP, our parent organization and also our partner for pallet transport to and from the UK. Here you will find a special brexit FAQ category and a brexit blog with a step-by-step plan and the most important recent updates. Please note that both pages are in Dutch.
After we the brexit we will mainly use DPD and UPS for the transport of parcels. These organizations also have clear manuals for their transport after the brexit. Click here for the advice of DPD. You can find the tips of UPS here.
Do you have any other questions? Plend send an email to firstname.lastname@example.org. We are happy to help you!