With only two months remaining, it is still unclear if there will be;
- No Deal UK – EU but the NI Protocol honoured
- Deal UK – EU
- No Deal UK – EU but the NI Protocol NOT honoured
It is however clear, all scenarios above still have some common requirements that all businesses who are trading with Great Britain should prepare for NOW.
While a trade agreement is likely to eliminate most tariffs, the extra administrative effort to meet customs compliance is significant and broadly similar in all of the possible outcomes above. Assess and act now to minimise delays, and evaluate and adapt to the increased costs.
Also, Irish Revenue and HMRC inspection may not be imminent but will eventually happen. Be aware that;
- you are still open to inspection even if you’ve got Domestic Customer only,
- whilst operating with Commercial customers on an All Island basis only, you may believe you are insulated. Fact is however, that your commercial customers may want you to demonstrate compliance, similar to you requesting readiness and compliance confirmation from your suppliers.
So, if you are trading with GB and the EU, using the UK land bridge, regardless of where you are located on the Island of Ireland, what should your business have in place to be ready at the end of 2020?
- EORI (Economic Operators Registration and Identification) number required in all customs procedures
- Commercial Invoice showing trade and customs relevant elements
- Goods traceability mechanism for cross borders trade of GB products
- Product commodity codes and country of origin
- Agreed Incoterms to avoid confusion of seller’s and buyer’s responsibility. This is in terms of shipment, shipment, insurance, documentation, customs clearance, and other logistical activities
- Customs declarations – prepare for in-house or external administered submission
- Customs clearance documents, EU and GB health and safety certificates and product labelling
The cost of customs compliance and non-tariff barriers in many sectors is higher than the cost of tariffs themselves.
All businesses should therefore perform a cost and cash flow analysis, generate an Implementation Plan, identify and secure the resources required to administer initial Brexit readiness and ongoing declarations.
If you require support on this planning, please contact us to discuss during an introductory session and visit the ACRA webpage for further information about our service offer.
There may also be government grant options that we can pursue to provide financial support on your journey through Brexit.
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