Preparing for a no-deal Brexit DRIVING LIFELONG PROSPERITY
Winter 2020
With little remaining flexibility in the Brexit timetable, is your business ready for the possibility of a no-deal exit? Nearly four years in the making, the Withdrawal Agreement is finally progressing through Parliament with the potential for a final agreement to be in place by 31 January.
remaining before the Bill is passed into UK legislature, and the further hurdle of it being ratified by the European parliament, a no-deal Brexit on 31 January remains a real possibility.
If this Agreement is successfully ratified, the UK will remain part of the single market and customs union until 31 December 2020, giving UK companies a temporary reprieve on any changes to their trade with the EU27.
This could mean that from 11pm on 31 January, any trade between the UK and EU27 will be subject to the import and export customs registrations, paperwork and duties that you would expect to encounter when trading internationally.
However, with numerous stages
For companies who are already
experienced with international trade, say with the US, China or Australia, this could be a relatively straightforward transition. If your company has not yet traded with the world beyond the single market, this extra administrative burden may be daunting. The key to thriving post-Brexit will be a thorough understanding of your business, an accurate and up-todate knowledge of the changing requirements, and an open mind to adapting your trade.
UNDERSTANDING YOUR CURRENT BUSINESS MAP OUT (LITERALLY!) YOUR CURRENT SUPPLY CHAIN •
Where are your customers and suppliers?
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Where else do your trading partners have operations?
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Which countries do your raw materials and finished products pass through en route?
CHECK THE SMALL PRINT
LOOK FOR WEAK POINTS •
Where are shipments likely to be delayed? (ports, borders)
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Will contractual penalty clauses be triggered by delays?
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Can your customers source from within the EU?
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What deadlines and timescales are you responsible for meeting?
DO NOT MISS THE OPPORTUNITIES!
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Who is responsible for
• With many businesses unprepared for a no-deal
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Brexit, if there is resilience already built into your supply chain this could be a significant selling point as your customers and suppliers look to reduce uncertainty, so make sure you’re shouting about it!
shipping and dealing with issues in transit?
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Once you have conquered post-Brexit trade with the EU27, if it is not already, this could be a great time for your company to broaden its horizons to trade with other countries around the globe.