Brexit: Current state of play

After almost 4 years of negotiation, the UK leaves the EU on 31^st January 2020.

So what happens next?

Once the UK has left the European Union, they will need to secure its future relationship and trading agreements with the EU. The initial timeframe for these negotiations should last until the end of this year, however there is some scope to extend this transition period. Here is an outline of what we can expect to lie ahead in this next phase of Brexit.

31st January 2020:

Brexit.

After passing through the House of Lords and European Parliament, Britain will leave the European Union, after 47 years.

1st March 2020:

The EU should have consolidated its negotiating mandate. The topic of a free trade agreement will be at the forefront of everybody’s mind. The aim of which will be a quota and tariff-free trade in goods. The final outcome of this agreement will determine the future economic relationship between Britain and the EU.

30th June 2020:

Deadline for seeking to extend the transition period ends.

It should be noted that the Prime Minister has vowed not to extend this transition period.

It is likely that a UK-EU summit will be held at some point in June, to evaluate the progress made to date.

26th November 2020:

Deadline for trade deal negotiations ends.

The deal needs to be translated and given to the European parliament if it is to be ratified by the end of 2020.

1st January 2021:

Where the deal is ratified, the new relationship between the UK and the EU will begin.

If the deal is not ratified, this essentially means a no-deal Brexit. Tariffs on goods and minimal co-operation on border checks are to be expected.

31st December 2022:

Should the Prime Minister apply for and secure an extension to the transition period (by 30^th June 2020), this date would mark the end of that period.

How to prepare for Brexit

With all of this in mind, a 6-point plan has been published by HMRC. The plan advises businesses on how to prepare for a no-deal.

1. In order to continue importing goods, your Economic Operator Registration and Identification (EORI) number must start with GB.
2. Who will be completing your import declarations? If properly prepared, you can do it yourself, but it may be worth considering an agent.
3. Don't over-complicate importing - you can apply to make it easier. Applying for the 'transitional simplified procedures' can lessen the amount of information that's required at the border. Rather than paying for each shipment, you can also make one payment of duties each month, through a duty deferment account.
4. Any application duties and VAT will need to be paid on all imports, so make sure you have checked the rates that you will need to pay.
5. The requirements for your imported goods may be liable to change, and need to be checked as well. There could be unique requirements for certain products, such as licenses/certificates. Make sure you have checked the rules for any tobacco, alcohol or oils, and check the marketing standards and labels for foods, plant seeds and manufactured goods.
6. Finally, get advice. The HMRC Brexit import and export helpline offers useful advice on all of the above points, as well as the transportation of goods, and for tips on product safety regulation.

However, HMRC will naturally be focused on the British side of things. It is important that you consider the wider impact for your overseas supply chains:

• Do you have responsibility for importing goods into other countries?
• Are you storing goods overseas and selling locally?
• Have you confirmed your obligations in those countries?

We are here to help

If you want to discuss the impacts that Brexit may have on your business, please get in touch and see how we can advise you, deal or no-deal.