As the October Brexit deadline looms closer, the prospect of disruption to freight flows is quickly becoming a reality, which means it is critical that you prepare your supply chain for a no-deal departure.
For all companies trading with Europe, and in particular those that are reliant on airfreight for just-in-time deliveries, the uncertainty is increasing, especially with the possibility of a no-deal exit increasing with recent political machinations.
Despite the gloomy outlook, there are ways to start planning for Brexit to ensure you are prepared, and your supply chain keeps moving after 31st October, regardless of a deal or no-deal Brexit.
Your Brexit checklist*:
- UK EORI Number
- TSP registration
- Check-in with your agent (ideally us)
- Confirm your commodity codes
- Assess duty cashflow impact
- Get deferment a/c or set up with your agent
*Also see our blog ‘No-deal importing’
The recent EORI opt-in by HMRC has at addressed one critical issue that had still be ignored by almost 100k UK businesses.
The first thing to consider when preparing for Brexit is that if one part of the UK’s supply chain stops functioning, then it has a knock-on effect to all other parties involved.
Engage with us directly to transition your operation post-Brexit
For example, additional customs requirements for air cargo could result in increased trucking congestion at airports and delays to goods being delivered by road, so even companies that aren’t directly involved in air cargo would still be affected.
And, a critical point that many seem to have overlooked is if your import truck struggles to get back out with an export load, or even empty, he will not be willing to repeat the process.
Secondly, we should encourage customers to apply for Transitional Simplified Procedures (TSP). Originally designed as an easement for the channel ports, TSP is now available for any port or airport where goods are being brought in from the EU.
TSP is being introduced by Her Majesty’s Revenue and Customs (HMRC) to allow businesses to defer full import declarations until a later date, which could help the flow of goods to keep moving post-Brexit.
At launch there will be an option to defer supplementary declaration for six months. Reporting will be monthly thereafter.
Engage with us directly, so that we can review your situation and ensure that you are ready to transition your operation post-Brexit, because change is coming, whether we like it or not.
In the event of a no-deal Brexit, the same procedures will be applied to EU trade that currently apply to the rest of the world, meaning overnight changes to trade and a huge increase in the number of declarations for imports and exports, calculated to be over 200 million.
The Government’s Border Delivery Group presentation, HMG Day 1 No Deal (D1ND) RoRo Business Requirements, consolidates all current planning into a single document and has now been made public. You can download a copy HERE