Be prepared or risk costs and delays

WITH less than 100 days to go until the end of the EU transition period, businesses need to act now to prepare for changes that will come into force on January 1, 2021.

If you fail to prepare, then be warned that you risk increased costs and shipment delays for your exports.

While the finer details of an agreement with the EU still need to be confirmed by the UK government, there are some actions we advise to take now, to ensure you are prepared for the New Year.

Even for businesses exporting outside of the EU, rules could change for trading in different markets if a new free trade agreement isn’t established, or the country you are trading with does not agree to roll over the previous free trade agreement before a new one is put in place. The documents you need to trade correctly and efficiently may change, so check you know what could be needed and what to look for in your market.

From the start of January, when you export goods to any country, you will need to submit a Customs Declaration. For businesses that have previously only traded with the EU, this will be a new factor to get used to. Completing a Customs Declaration can be complicated, and you may need to obtain certain software, so it is a good idea to look into this beforehand and take the time to familiarise yourself with the process.

You will want to be aware of how other legislation may change in the markets you are trading with. For example, the food and drink industry will require different labelling on products than previously needed, and for some pharmaceutical and medical products you will have to consider how they are registered. It is a good idea to also consider how your Intellectual Property will be protected in certain markets and whether you need to register for VAT in the countries you trade with. This is still being clarified by UK government and you will need to keep abreast of any changes.

Catherine Stephens , Head of International Trade Services at Business West, says the end of the EU transition period is looming fast

Following a Business West campaign in August 2019, in which we warned companies that they needed to take urgent action and register for an EORI number, we were pleased with the UK government announcement that it would be issuing businesses with one automatically, rather than waiting for them to make an application. From January 1, 2021, you’ll need an EORI number that starts with GB to move goods to or from the UK. Most businesses should have now received this, but please ensure you have yours to avoid any problems. You can check if your company has an EORI number already easily with an EORI number validator. Contact the HMRC EORI team to get specific advice in this area.

There will be a lot of changes to get used to. Trade between the UK and EU countries is likely to look vastly different than it does now. These are the four priorities we recommend right now, but with government in talks as we speak, information is fast moving and could change.

If businesses need export documentation support, they can contact the Export Documentation Team at Businesses West on 01275 774 958 or make an enquiry online.