Getting you ready for Brexit

October 25, 2019 3:31 pm

While the EU delay a decision on the Brexit deadline and the government ramps up its ‘get ready for Brexit’ campaign, we review the most important issues to come out of our recent Brexit webinars.

The most recent Brexit briefings, with EU expert Robert Hardy, have bought into sharp focus the most critical issues that shipper face, whatever form Brexit eventually takes.

Our final Brexit briefing webinar on Monday 28th October at 10am will cover the latest updates and the impacts these may have on your supply chain. If you buy or sell to anyone in the EU, it’s essential that you attend. Click HERE to register.

The ‘Are you really ready for Brexit’ webinar was an in depth look at the impending changes, inherent in the UK becoming a 3rd country, and the new declaration/documentation processes that will be put in place.

While last week’s ‘Be Brexit ready in 10 minutes’ was a summary of the most salient issues and a checklist for preparation.

The focus on EORI and TSP has been relevant and appropriate, but there are other issues that are also critical, which have been given little attention. The latest Unsworth seminars were designed to redress this imbalance.

The lesser covered Brexit issues that you MUST consider:

Incoterms – Are your trading contracts still fit for purpose?
For example, an EU buyer (importer) should avoid purchasing goods ex works (EXW), as they will then be responsible for the UK export declaration, while an EU seller (exporter) should avoid selling DDP, as they will be responsible for the UK import declaration.
FCA and DAP are recommended replacements.

Pallets – As it stands all exports from UK to EU must be on ISPM15 heat treated pallets. Currently pallets from EU to UK do NOT need to be heat treated but if EU insist on ISPM15 then UK have threatened do the same (in order to create the pool in the UK).

Declarations – EAD is the control mechanism, while EXS (export summary declaration) generates MRN and pre-alerts exit border, in case controls are needed.
For imports ENS pre-alerts exit border, in case controls are needed, C88 pre-lodged import entry, or TSP return already complete or truck can’t load Calais

Customs transit – Transit is a customs procedure used to move goods between two points in a customs territory, via another customs territory, or between two or more different customs territories, based on guarantees and discharged liabilities.
Transit is not generally required for EU to UK

Import processes – 19 different import scenarios were explored during the webinar and whilst these examples featured new processes, authorisations and documentary processes, once understood they are no longer daunting.

UK CHIEF/CDS – HMRC’s declaration processing systems CHIEF should have been replaced by CDS, which has far greater capacity. Unfortunately the handover is behind schedule and CHIEF, which was designed to handle a maximum of 100m declarations p.a., has been reconfigured to prepare it for the 210m declarations anticipated after Brexit. HMRC believes tat even with their system operating there are insufficient brokers available to process the additional declarations.

Tariffs – Importing from the EU will be like importing from 3rd countries such as China or the US, which means everything will be subjected to tariffs. 87% of products will be tariff free, but every business should check to confirm their code and rating.

Over 300 importers and exporters engaged with Unsworth, during our most recent Brexit briefings and word of our expertise has evidently spread, with commercial director, Charles Hogg, invited by the London Chamber of Commerce to speak at their forthcoming Brexit seminar, in Westminster, on Tuesday 29th October.

10 Brexit questions

  1. Have you got your TSP registration
  2. Can you/your suppliers still supply on a DDP basis
  3. Do you have an UK EORI number
  4. Have you discussed potential Incoterm changes with customers/suppliers
  5. Is your commercial paperwork sufficient for new customs regimes
  6. Have you appointed a customs broker
  7. Have you mapped out post-Brexit process flows
  8. Are you holding sufficient stock in case of border delays
  9. Do you understand ro/ro port requirements for linking customs entries
  10. Has your carrier confirmed they are prepared
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