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The UK left the EU in January 2020 and on the 31 December 2020 the transition period will end, at w

The negotiations for an agreement are still in  progress, however whatever the outcome controls will be implemented for  all cross-border trade between the UK and EU.

(Please note that all references to UK to EU trade also apply to EU to UK trade).


Q: Will my company be affected by Brexit?

If your company is involved with the trading or movement of goods between the UK and EU countries, or trading with the UK using EU Free Trade Agreements, your company will be affected by Brexit.

Business transactions between the UK and EU countries were previously seen as intra-community traffic and therefore not subject to customs import processes and duty payments.  Brexit changes this, meaning products must be included in customs declarations, with a potential liability to pay duty. 

Companies outside the EU doing business with UK companies might be affected as existing trade agreements will cease if/when the UK leaves the EU Customs Union. Trade after that will be subject to the new trade  agreements the UK is negotiating.

We also expect significant impact on returned goods between the UK and EU since it could be that duty will be payable on the original import and the return.
 

Q: What do we need to do to prepare for Brexit?

Customs controls will be introduced between the EU and the UK when the transition period ends on 31 December 2020.

Some of the key preparations required are to obtain an EORI (Economic Operators Registration and Identification) number, classify your products and have a correctly formatted commercial invoice.  For guidance on these and more items required please refer to the links in the drop down Brexit Menu.

You may also need to review your supply chain, especially if you are currently using a central warehouse based in the EU or UK to distribute across Europe, to avoid paying duty on entry to the EU and then again on entry to the UK.

You will also need to appoint CMI to act as your direct representation to complete Customs declarations, your normal contact can provide details of what is required for us to act on your behalf. 
 

Q: Will Brexit increase the cost of our supply chain?

Unfortunately yes, because all shipments will require customs documentation on departure and arrival, for which you may require a customs broker.  Additionally, it is likely that duty will be payable on entry to both the EU and UK, although this is still the subject of  negotiations between the EU and UK.
 

Q: Will Brexit result in delays to our supply chain?

Whatever the outcome of the negotiations, customs controls will be implemented by both the UK and EU, requiring clearance before cargo is allowed to move forward.  Apart from the potential for port congestion, the logistics will change from an operation which is similar to a  movement from the EU to the USA or Japan with documentation needed to be  in place before goods are collected from origin. This will inevitably  impact overall supply chain speed and reliability.
 

Q: How can I stay updated?

Please make sure you are subscribed to our newsletters, we also recommend that you visit our Brexit site here at regular intervals  to get the latest insights.

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