On writing this article Parliament’s Meaningful Vote on Theresa May’s deal with the EU is set for December 11th following 5 days of debate. The atmosphere is hostile and highly politicised. Strong views are expressed among the media and the public but Davies Turner, alongside our European Partner Network remain focused only on what this means for us and our clients.
Deal or No Deal?
If the agreement is ratified nothing will change in how business operates during the transitional period up to at least December 2020. Positively, there is more time to plan and prepare. This is not and was never going to be a full trade deal, but it provides some further clarity on the boundaries of the relationship with the EU and when more detail will be given.
If the UK leaves the EU on 29th March at 23.00 with No Deal there is a great deal of speculation as to the impact on our Ports, roads, customs procedures and regulations. We have been taking soundings and attended many conferences & seminars, and are prepared to respond to a No Deal scenario. The best advice for our customers and partners remains:
- We should assume that some form of additional paperwork and procedure will need to be undertaken
- We should appreciate that there could be a burden of cost.
- We should plan for the fact that we will not have tariff free access to/from the EU 27
- We should be aware that there may be increased bureaucracy and checks at borders
Practical steps for now, or our “No Regrets Decisions” :
- Start establishing the customs commodity codes for your goods. Help and advice from https://www.gov.uk/trade-tariff is completely free
- All businesses trading only with the EU should now ensure they get an EORI number, details here https://www.gov.uk/eori
- Decide if a 24/48 hr increased lead time will be problematic, if yes – plan to order earlier and / or keep a buffer stock if possible. In the event of a ‘no-deal’ there could potentially be serious disruption to supply chains in the short term so building up stock over the next few months should be considered.
- Be prepared to supply your transport company with a full commercial Invoice and (if possible) a packing list with full information of goods being shipped, including commodity codes as above.
- Clean up your data. Have you got the resources to deal with new data requirements?
- Engage with your suppliers and key 3rd parties.
- See the UK Government’s technical notices and Partnership Packs BUT do note legislation is required for many of these arrangements, these are a plan and not the final No Deal scenarios
https://www.gov.uk/government/collections/how-to-prepare-if-the-uk-leaves-the-eu-with-no-deal
Regardless of the outcomes of negotiations between our Government and the EU27 Davies Turner is ready to help our clients cope with whatever comes in the best way possible. We already have a dedicated team of Customs experts and will be upskilling more of our employees as will be necessary, alongside a recruitment plan to cope with any additional work required. Our partner network in the EU and beyond is well resourced to meet any challenges alongside us.
As soon as the outcome is finalised we will then start a more pro-active dialogue with our clients.