Brexit – what now for businesses that trade with the UK?

Brexit – what now for businesses that trade with the UK?

March 20, 2019

Ireland will be the EU Member State most affected by the UK’s decision to leave the European Union and we need to recognise that this is happening – the UK is leaving the EU and some things are going to change.

Businesses that buy and sell from and to the UK should have contingency plans in place which will need to be flexible to cope with a variety of possible outcomes.

There is still uncertainty around what Brexit will mean and planning for what may still potentially be a “No Deal” scenario seems sensible right now.

The Department of Foreign Affairs and Trade have put in place a number of supports to help businesses of all shapes and sizes across all sectors of the economy. See the Department of Foreign Affairs for further details.

Cross-border traders can now avail of two vouchers from InterTradeIreland – the ‘Planning Voucher’ and the new ‘Brexit Implementation Voucher’.

If a ‘No Deal’ still happens after March 2019 here are some of the areas you should consider:

The UK will become a “3rd Country” for customs purposes as it will be outside the EU. Ensure you understand the basic principles underpinning and requirements of customs formalities for non-EU trade and how and where they apply, including import, export and transit formalities. For some businesses this will be new, so check out the Customs Brexit Information Seminar slides.

If you trade regularly with the UK then you should consider an Economic Operators Registration and Identification (EORI) number and also register for Authorised Economic Operator (AEO) status which enables “Trusted” businesses to simplify their customs procedures. See Revenue for more details.

In the event of “No Deal” all exports and imports to the UK may be subject to tariffs under the rules of the World Trade Organisation (WTO) despite what the UK have initially suggested. You will need to identify where “inputs” come from and which categories of product they fall into so you can work out the tariffs that will apply.

If you have contracts with UK companies these may need to be redrafted to clarify the terms for trade, including VAT ans Customs changes.

Enterprise Ireland has some further guidance.

What’s clear is that Brexit requires you to have a good think about your future strategy planning. Take some time to think about what needs to be done sooner rather than later.

Whether there is a “No Deal”, a brief delay in the UK’s departure, a “Deal” or a longer period of transition we advise all businesses to research all scenarios and “plan for the worst but hope for the best”.

We have a more comprehensive “No Deal” Brexit planning checklist available for clients which you can download here – Brexit Ready Checklist Ireland

We also have a Brexit Ready Checklist – UK version which you can get here

Brexit Checklist Ireland Cover Image

Contact us to discuss your next steps.

Read about the InterTradeIreland Start to Plan Vouchers

Gareth Evans
Practice Director
+353 42 933 9955
garethevans@fdw.ie

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