The Impact of Brexit on Import and Export Businesses

Brexit is all set to happen and create impacts on import and export businesses in the UK. Brexit is going to impact everyone living in the UK, but businesses are required to quickly adapt to new rules and regulations after Brexit. 

 

What is Brexit?

On 23rd June 2016, UK electorate voted to leave the EU. Negotiations are still in process between the EU and UK governments in deciding how the movements of services, goods, people, and capital all over the EU and UK borders will be processed after Brexit. 

On seeing this change from a business point of view, Britain is currently a member of the EU’s single market and customs union, which allows its states to function as a single trading area with a combined VAT system and no border checks or tariffs.

All these are going to change following Brexit and impacts businesses, especially import and export businesses. 

When Does Brexit Happen?

Brexit is going to happen at 11 pm on 31st October 2019. There would be some changes in business regulations following Brexit, which include:

  • Most EU laws applying to the UK will still apply, as they will become “retained EU law”. 
  • Based on a mutual agreement between the EU and UK governments, to grant businesses enough time to adapt to the new rules, a transition period will be in effect from 31st October. During the transition period, some EU regulations will apply to the UK, which helps businesses create an orderly exit from the EU.

 

How Does Brexit Affect Import and Export or Logistics Businesses?

Brexit will impact and change several processes of import and export businesses, which include:

  • Movement of goods under transit
  • Movement of excise goods
  • Increased volumes of import and export declarations
  • Duty rates are expected to change
  • UK introducing postponed accounting VAT
  • No low-value consignment relief on VAT into the UK for e-commerce
  • Mandatory or recommended pre-arrival declarations
  • Authorized consignee/consignor status to ease movement through ro-ro ports
  • Transport and logistics including fulfillment 

 

How Long Does It Take to Adapt to Brexit?

It is impossible to predict the accurate time to adapt to Brexit rules and regulations. However, you should start planning immediately and creating the right measures to get used to new rules and regulations. It would be good if your business adapts to the new rules during the transition period itself. 

 

How Can A Supply Chain Specialist Help You Adapt to Brexit?

If you want your business to adapt to Brexit laws, regulations, and other changes smoothly and quickly, you need to get in touch with a supply chain specialist. A supply chain specialist will first determine how Brexit is going to impact your logistics or import/export business and include necessary changes in your plan. 

A supply chain specialist will take care of everything that your business requires right from shipment to billing and customs service. Also, they will ensure all the processes are happening as per the new rules and regulations of Brexit.

Are you worried about Brexit? Get in touch with our supply chain specialist. We look forward to helping you with all your logistics requirements following Brexit

 
 

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