Is your business
If you trade with the EU, make sure you’re up to date with the new rules to keep things moving – as these businesses have done
The UK has left the EU and the Brexit transition period is over. We are no longer part of the EU customs union, single market or VAT area; this means doing business with and travelling to Europe have changed. There are new rules on exports, imports, tariffs and travel. So if your business trades with the EU, take action now to keep things moving.
There are new processes to follow, but these needn’t stop you trading successfully.
FULLY PREPARED
Based in Bristol, Keri Andriana’s handbag brand Amschela sells to customers worldwide. Keri didn’t encounter any setbacks in continuing to trade with the EU, but she did ensure she was fully prepared. “It was about getting familiar with the rules, and how to apply them. Once I’d worked out which ones applied to my business, it was easier than I’d thought it would be,” she says.
Scottish distillery GlenAllachie exports to 60 countries and, while sales and marketing director David Keir admits leaving the EU added a layer of complexity, he has put systems in place to speed up processes. “Different countries have different approaches, so we now have a checklist for each to ensure relevant documentation is supplied,” he explains.
While the exporting process now has some extra steps, there is an upside, “Our importers are placing larger orders, rather than ordering lesser quantities more often,” says David.
Barry Whitehead is sales and marketing manager for Trads, a Lincolnshire business making traditionally styled cast iron radiators. “Planning is key,” he says, “It took us a fair amount of time to figure out what we’d need to change, but we and our courier have managed to automate a great deal so now trading with the EU is straightforward.”
Under the new rules you must make customs declarations when exporting goods to the EU. Some businesses, such as GlenAllachie and Trads use an intermediary such as a courier, freight forwarder or customs agent, while others, like Amschela, handle the paperwork in-house.
RULES OF ORIGIN
The UK’s trade agreement with the EU means UK businesses can continue to buy and sell goods with the EU free of customs duty charges. To do so, they must demonstrate their goods meet the rules of origin. You can check commodity codes, duty rates and rules of origin via an online tool at gov. uk/check-duties-customsexporting. If you’re still unsure, you can get help from a customs intermediary to check goods are classified correctly.
If your business imports goods from the EU into Great Britain that are not on the controlled goods list, you can delay making full declarations to
HMRC for up to 175 days after the date of import, up until January 1, 2022.
Many businesses can also benefit from using postponed
VAT accounting (PVA). If you’re a UK VAT registered importer, this allows you to account for and recover import VAT on your VAT return.
Barry from Trads advises, “It’s important to communicate with your customers, set expectations and make them aware of the new arrangements.” Another tip from Barry is, “Think about whether your products could be affected by regulations. Whether you’re selling to a business or consumer, and the value of your products can influence which regulations apply.” Trading with the EU is a key part of all of three businesses, and they are equally keen to reassure others that there’s a wealth of support available.
Keri says, “Don’t be put off by the complexity of the rules; there’s lots of information online like the gov.uk/ transition website. Speak to other businesses and don’t get stifled by the process.”
Communicate with your customers and make sure they’re aware of the new arrangements BARRY WHITEHEAD, TRADS