What is Brexit?
On 23 June 2016, the United Kingdom’s (UK) electorate voted to exit the European Union and the European Customs Union. Currently trading agreements between the two states will terminate at 23:00hrs on 31 December 2020; meaning that there will be changes in the current EU trade relationship from 01 January 2021. Whilst the future arrangements have not been fully negotiated at this juncture, companies need to prepare for impacts to the following:
Free movement of goods
Free Trade between the UK and EU will no longer apply, with all movements between the regions requiring either an import or export declaration.
Tariff Preferential Agreement
Unless a new trade deal has been agreed, we will move to operate under the WTO Tariffs. Further information can be found here.
The current tariff quotas are compiled for the EU and as the UK exits same it will need to negotiate its own quota relief with each country or trade community.
Increase in import & export declarations
It is estimated declarations will increase from 55 million per year to in excess of 200 million per year.
Delays at port
Due to the increase in customs documentation to be processed, it is expected there will be initial delays at port.