BREXIT NEWSLETTER NO. 4
Are you prepared for Brexit?
Have you or your colleagues attended any of the Brexit workshops and seminars offered by Enterprise Ireland, Bord Bia, Revenue or the Department of Agriculture? It’s not too late! Please see recommended websites at the foot of this newsletter to assist with any planning needs you may have. Also, see our first Brexit newsletter for other recommended websites.
” As an Irish Company trading internationally for the last 12 years, we understand the importance of good working relationships with overseas partners, and that is why we have prepared ourselves for the possibility of a Brexit no deal.”
-Terry Allen, Hawthorn Logistics Director
New UK government aim
The Sunday Times published an article from Michael Gove MP, 28th July 2019, confirming the new Government’s determination to exit the EU on October 31st 2019. Mr Gove made a call to business to prepare for a ‘no deal’ Brexit and the UK Government is making necessary funding available to aid preparations. Another task the UK Government is addressing is to ensure that the UK Government machine has a single mission of delivering Brexit to the British people on time and to do this will be accelerating policy decision-making across all Government departments. There will be a Public information blitz across all media so that businesses (and communities) can prepare for Brexit. The full article can be read at shorturl.at/nCH58
“Brexit will determine how future generations live and work in the UK for decades to come. The prospect of a no deal scenario poses a real threat to people and business alike.
A no deal scenario could mean:
- The time to clear medicines for sale across the UK increasing by up to 3 months.
- A delay of just 2 minutes to check and process a lorry at Dover leading to queues of over 17 miles
- Severe regulatory trading barriers leading to stifled digital growth for the UK’s leading £240 billion data economy.”
-Confederation of British Industry
Traders importing to Ireland from the UK have not required any Customs procedures since the late 80’s so having an understanding of Customs requirements was not previously a consideration. Traders are now faced with a situation where their movement of goods between the UK and EU will become subject to Customs control. Traders do have the option to appoint a Customs representative to assist them with Customs compliance but it is the trader who is ultimately responsible for compliance with Customs law and legislation. Call us on (01) 8991101 if you have a requirement for Customs representation.
Northern Ireland border
On any given day, more than 13,500 goods vehicles cross just six of the 300 border crossings in Ireland, with the majority of freight being intermediate goods that are an integral part of all-island supply chains. In 2016, Northern Ireland exported goods to Ireland worth GBP 4 Billion, and Ireland exported goods to Northern Ireland worth GBP 1.3 Billion. These figures exclude agriculture and tourism logistics,
Import tariffs from the UK
Please be reminded that in the case of a ‘no deal’, Irish imports from the UK could well be liable to import duty and VAT, and likewise, Irish exports to theUK could well be liable to UK Customs import duty and VAT. Consideration should be given to understand the cargo Incoterms when planning to trade with the UK, after Brexit, so that it is clear which party is responsible for the imports duties and VAT. Current Incoterms can be found at www.hawthornlogistics.ie/incoterms.pdf