Costs, delays, merchandise… How will Brexit affect importers and exporters?

Costs, delays, merchandise… How will Brexit affect importers and exporters?

Despite the postponement of Brexit until October, doubts about trade and customs are still evident.

It is essential that companies, customs agents and other organizations involved in a commercial activity of export or import, are prepared for the imminent departure of the United Kingdom from the European Union.

So far, the 28 countries that are part of the EU Customs Union did not pay customs duties on the goods they moved, the goods could circulate without problems for the different member countries, without the need to go through more controls, and a Common Customs Tariff for goods imported outside the union.

However, with the arrival of Brexit and the elimination of the United Kingdom from this union, free circulation with the United Kingdom and through this territory is complicated.

In this sense, the Brexit can affect those organizations that are engaged in marketing goods or services in the United Kingdom, those that buy those goods or services from the United Kingdom and those that transport goods from or through the United Kingdom to any other point of the world.

“In these cases, companies must register with British Customs in order to continue operating with and through the United Kingdom, because when this becomes the third country and therefore cease to be considered as intra-community operations, they will be treated directly as imports. or exports. In addition, they should assess whether they can benefit from any reduction or simplification, to save time, procedures and costs. Organizations that consider it necessary will be able to request a statute of authorized economic operator (AEO) from the customs authority, which will further facilitate this type of transactions with and for the United Kingdom”, says Tino Hyland, general manager of Hyland Shipping.

Depending on the type of merchandise, tariffs, licenses, authorizations and other taxes will vary. That is why preparing a contingency plan for this new situation and go hand in hand with a consultant or company specializing in this type of transport is essential to avoid wasting time with paperwork and other inquiries.

How will the Brexit affect the importing and exporting companies?

There are several factors on which Brexit will influence companies when it comes to importing and exporting their products to / from the United Kingdom. Next, we go to detail them.

  • Costs: tariffs, taxes and other charges will result in higher prices of products.
  • Delays: the goods transported by land and sea, inevitably passing through the British borders, will spend a longer time of retention in the customs, which implies additional costs and delays in deliveries.
  • Goods and raw materials: factors such as temperature or time of retention of products and goods in British customs may harm those that are more sensitive or perishable, such as certain foods, chemicals, luxury products, perfumery and cosmetics, flowers, plants, works of art or medicines.

Leave a Reply

Your email address will not be published. Required fields are marked *