The UK is planning on leaving the EU soon. This brings a lot of questions to the surface, yet there are few answers. What we do know for sure, however, is that Greencarrier Freight Services has all the permits and bonded warehouses in place and is ready for shipping! With this blog article, I hope to provide you with some clarity on how you can prepare for shipping your goods in the UK and EU.
What will be the impact of a full Brexit for my company?
There is an ongoing discussion between the EU and UK to reach an agreement for trade. The most likely outcome of the discussion is that all goods in and out of the UK will be followed by a customs procedure. In the long run, you will probably see a trade agreement.
But while the plan for the UK is to leave EU on 30 March 2019, there will most likely be a 21-month transition period, in which the new rules can be put in place and companies can prepare for changes. This is why you shouldn’t expect a final trade agreement before 1 January 2021.
When the transition period ends, the EU and UK are expected to have a free trade agreement, but since negotiations are ongoing, nothing is final yet. In other words, until 2021 there will most likely be no Brexit-related trade and customs changes that will impact your company.
Dates to keep an eye on
- 1 January 2021. If the UK leaves EU on 30 March 2019, most of the legal effects of Brexit will apply as of 1 January 2021, after the 21-month transition period.
- 30 March 2019. If there is no agreement, there will be no transition period and EU law will no longer apply to and in the UK as of 30 March 2019 and customs procedures will be affected immediately.
How can I prepare for shipping my goods in the UK and EU?
The new agreement for trade may have an economic impact on your company. This is why you should make sure to be well prepared. Here are five tips on how you can prepare for future shipping in the UK and EU.
1. Have your documents ready for customs clearance
Based on the assumption that you will have to pay for customs clearance, this will increase your overall shipping cost. Therefore, make sure you have all the necessary documents ready to clear your goods as fast as possible.
2. Analyse your operations and goods flow
Carry out a risk analysis of your operations to clarify possible consequences for your company. Analyse your goods flow with the UK; take a look at your UK suppliers and customers and review your contracts and how they will be affected by Brexit.
3. Consider alternative transport routes
Take a look at what modes of transport your carriers use. There is no doubt that the number of trailers coming in and out of the UK after Brexit will cause congestions on both sides of the tunnel and in the seaports. If the roads you use appear to be problematic or the goods are time-critical, prepare for increased transit times and possible delays, or you may need to consider alternative transport routes. Contact your carrier to hear how they reason and how they may be affected by Brexit. To avoid unnecessary payment, make sure you have access to bonded warehouses.
4. Have your permits for import and export ready
Make sure you have all the permits required for import and export. In order to ship your goods to and from the UK and EU, you might need to apply for new permits. Today, there is a great number of companies in the UK that don’t have the valid permits for shipping. This will result in a tremendous number of applications in the near future, so make sure to apply for your permits in time, so that you and your carrier are ready for shipping.
5. Check the need for Certificates of Origin
Check if the conditions for issuing Certificates of Origin will change. For example, if you export goods which are produced, manufactured or processed in the UK, it may no longer be possible to issue Certificates of Origin for export from for example Sweden to another country outside of the EU. If you are currently shipping intermediate goods or finished goods with the UK, and exporting the goods with Certificate of Origin to partner countries, you should monitor how a future agreement between the UK and EU will affect this shipment.
So, will you be able to ship your goods to and from the UK and EU without any hassle? Yes, it’s possible! If question marks still remain, however, don’t hesitate to ask us for assistance on this matter. As your reliable partner, we will make sure to be ready for shipping together!