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What happens after Brexit? 

With the UK due to leave the EU on the 29^th March 2019, there is still considerable confusion as to the outcome of negotiations and a No Deal Brexit cannot be ruled out.  For UK based exporters and importers of goods to and from EU countries, significant changes to Customs regulations are inevitable with the main consideration being a change from CHIEF (Customs Handling of Import and Export Freight) to the new CDS (Customs Declaration Service).

Here for your information are the main points to be aware of.  If you require any further details, please do not hesitate to contact us and as the situation unfolds we will endeavour to keep you updated with the latest developments and requirements. 

• UK imports and exports will be treated as a “third country” status by the EU.
  
  
• Importers and exporters will face unprecedented red tape which will probably affect small and medium size businesses. New Tariff costs, increased administration and legal requirements will result in additional complexity.

• There is likely to be a rise in additional import and export documentation costs after Brexit to and from the EU with changing customs procedures.

• Businesses currently trading with the EU without the need to customs clearance requirements will without doubt require an experienced customs broker after Brexit.

• Importing, exporting and trading with countries inside the EU will become like trading with countries outside the EU, such as the USA.
  
  Those companies that have only ever traded within the EU will require to be EORI registered (Economic Operator Registration and Identification) and will need to register for excise (for certain goods) and Vat with the appropriate government department.

• Brexit is likely to affect the trade volume between the UK and EU as a result of additional administration and tariff costs, dependant on trade agreement between UK and EU.

• Changes in EU and UK legislation governing current legislations on various goods, as well as import and export rules.

• There is still uncertainty regarding the free movement of goods and Labour within the EU.
  
  
• EU markets account for up to 45% of British exports and so removing the UK from free trade agreements would impose tax on all goods exported to EU countries.

• Leaving the Eurozone would create more complications, slower delivery times, and higher costs for shipping.

• The import and exporting of goods and how they are shipped to the UK may change.
• UK consumers may have to pay tariffs on goods from the Eurozone, which has not been necessary before.

• Shipping to and from the Eurozone countries to the UK is likely to decrease, while shipping to outside the EU will almost certainly increase.

• If the current free trade agreements with the EU are cancelled, the cheap goods from place like China are likely to seem more appealing to consumers.

• It is likely that there will be many more goods shipped from Asia to the UK in the coming years.
  
  
• Brexit has resulted in the value of a fall in Sterling, which in turn is likely to generate an increase in domestic activity from consumers within the UK.

• For the shipping industry, this increase will probably mean domestic shipping – Parcel and Packages Services, Freight and others will increase in the short term.

• If a return to tariffs for UK merchandise exports and imports is the outcome of trade negotiations with the EU, this could be detrimental to UK trade with the EU, and may result in a small reduction in UK-EU maritime volume.

• At Aerona we have carefully made plans for our own Brexit strategy to minimise the disruption our customers will have to face if a deal isn’t reached. To speak with an experienced member of our team about Brexit and logistics for your business, please contact a member of our staff for further advice.

The consequences of Brexit for logistics industry are not set in stone and there is a possibility that businesses will need to take the steps we have listed above if importing from or exporting into the UK.

• For additional information please visits the following links:

• https://www.gov.uk/government/publications/uk-governments-preparations-for-a-no-deal-scenario/uk-governments-preparations-for-a-no-deal-scenario 

• https://www.gov.uk/starting-to-import/importing-from-noneu-countries 

• https://www.gov.uk/trade-tariff 

• https://www.food.gov.uk/business-guidance/prepare-your-business-for-the-uk-leaving-the-eu 

If you would like to discuss how Brexit could affect your import or export business and to discover how we can be of assistance, please do not hesitate to speak to one of our highly qualified team members who will be able to help you develop the right logistics strategy regarding a Brexit deal or No Deal scenario.You can contact or call us on 0161 652 3443.