All Posts Blog: Brexit Blog

Getting real about risk when trading with Third Countires outside the EU

More than 50% of UK business involves trade. And when the dust finally settles on Brexit, one thing seems certain: more of it will be with non-EU countries. 

So what does it entail from a risk point of view? And how should small businesses plan for this brave new world? 

Peter Quintana, director of the High Growth Knowledge Company put this to a panel of leading business people at our recent International Business Round Table hosted in association with Bluefin Insurance, Milsted Langdon and Royds Withy King. They broke the risk down into two areas – financial risks and physical risks.


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Brexit Toolkit - A Flying Visit to Brussels

Brian Dakers of the Brexit Toolkit team visited Brussels this month for meetings with senior civil servants and politicians. The aim of the visit was to hear the perspectives of those at the coal face of trade facilitation and negotiation, acting on behalf of UK plc in the European Parliament and it's related bodies. During the visit, Brian met with Jude Kirton-Darling, MEP for North East England, to discuss the effects of Brexit on UK businesses trading both with the EU and beyond. Brian said: "It was a pleasure to catch up with Jude, and to meet her team, who are doing great work on behalf of the UK in these critical times. It was good to hear feedback on the toolkit, and discuss measures prudent businesses can take to plan for the likely outcomes of Brexit negotiations. Jude re-emphasised her availability in regard to helping UK businesses succeed in EU markets, including through greater understanding of it's mechanisms. I will continue to forward queries and questions, and remain confident in her practical, expert guidance in the months and years ahead." Click on the LinkedIn article or email Brian for further information.

LinkedIn Article - Flying Visit to Brussels

Brexit Preparation Guide (2) - Customs Export Declarations

On the 15th of August the Government released their policy paper 'Future Customs Arrangements: a future partnership paper' on proposed customs arrangements with the EU post-Brexit. They proposed a 'limited-time interim period' where both UK and EU business would benefit from time to fully implement the new customs arrangements, in order to avoid a cliff-edge.

The document identifies two broad approaches to a border with the EU, but there is very little of substance to help UK business plan ahead. The first approach 'a highly streamlined customs arrangement' involves utilising the UK’s existing third country processes (NES export declarations to HMRC) for UK-EU trade. The second approach 'a new customs partnership with the EU' would seek to align customs with the EU in a way that removes the need for a UK-EU customs border. This is qualified in the policy paper with the statement 'This is of course unprecedented as an approach and could be challenging to implement'.

On the surface, option one seems the most likely of these two options and would certainly be the fallback position, should the 'alignment approach' fail. Under this scenario port infrastructure would look to be improved for 'as frictionless a customs border as possible', but Export and Import goods would need to be declared to HMRC, as per current third country rules.

HMRC has estimated there are 192,000 exporters in the UK who ship goods to EU countries, but have never shipped outside the EU to third countries. If your company fits into this category, read the guide below to find what you would need to do to declare goods for export.

Brexit Preparation Guide - Supply Chain Mapping

Supply chain between the UK and Europe is an area that will be greatly affected over the coming years by the UK's withdrawal from the EU.

Though the exact nature of the changes will not become apparent for some time, mapping supply chains can help companies understand both the risks and the opportunities these changes might bring.

Whatever the outcome of Brexit negotiations, it is wise to start that planning now, to ensure you remain competitive in the changing market. Early and effective scenario planning combined with analysis of the potential consequences of a post-Brexit economy might even improve your position.

Could a Conservative Parliamentary election victory mean a 'Softer' Brexit & what would this mean for International Traders?

Having called a snap election, the Conservative Party is currently 21 points ahead in the first election poll since the announcement. On news of the election, the pound rose to a six-month high, largely due to speculation that five more years until the next election would lead to a 'softer' Brexit. How would a 'Soft' Brexit effect UK importers and Exporters?

What is CDS and why is it an important part of Brexit?

CDS stands for the 'Customs Declaration Services' programme and is a large scale implementation currently being undertaken by HMRC to replace the CHIEF servers (these are the servers which currently process all import, export & freight declarations). The new CDS system is due to be rolled out in December 2018, but the project has just been given an unofficial amber-red status by HMRC.

HMRC's concern for transit routes

HMRC share thier concerns with software suppliers about potential post-Brexit transit disruption. 

As a software supplier to the import/export industry and as a member of several associations, i2i Infinity often attend meetings organised by HMRC or meetings in which representatives of HMRC are guest speakers.