Government Guidance Aimed At Helping EU Trade With The UK After Brexit, Say Lawyers
As the Department for International Trade publishes updated guidance to prepare EU businesses for trade with the UK from January 2021, lawyers at Irwin Mitchell are highlighting some of the key areas of the guidance EU business must focus on as the end of the transition period draws near.
When the transition period ends at 11.00pm on 31 December 2020, businesses will have to navigate new rules and regulations, regardless of any trade deal. While a lot of the focus has been on what this means for the UK, the implications are no less significant for EU firms who wish to continue trading with the UK.
The guidance is published in seven languages and covers a number of areas including customs requirements, requirements for placing manufactured goods on the market in Great Britain, paying Vat or claiming Vat refunds and providing services and business activity in the UK.
For example, EU firms intending to continue trading with the UK now need to:
- Understand how the border will work from 1 January 2021
- Talk to partners in the UK and agree responsibilities
- Ensure they have the correct paperwork for the type of goods being traded
- Ensure the necessary border requirements have been completed
- Check import procedures with their own country’s customs authority
- Checking what changes apply to the placing of manufactured goods on the market in Great Britain
- Check new Vat rules
- Consider their workforce and business activity requirements from 1 January 2021 and understand what steps need to be taken to deal with the restrictions of the new immigration laws
Expert Opinion“Just as the impact of coronavirus hindered preparations for Brexit in the UK European businesses face many of the same issues and may be struggling to be ready for the trading changes that are less than 50 days away now.
“There is going to be an impact on ‘frictionless trade’ and EU business needs to be having the right conversations with their UK counterparts now, to be clear that each understands how the border will work for their specific goods and who is taking responsibility for each area.
“The rules will vary depending on the nature of the business and while changes might have been expected for plant and animal products, manufacturing is not immune.
“There is a lot still to consider in the short time that remains and while many firms should already be engaged in conversations with their opposite numbers in the UK, these discussions may need to intensify now to ensure as smooth a switch as possible to new trading realities come 1 January.” Bryan Bletso - Partner
A Brexit webinar is taking place on Wednesday 4 November at 10am, which will look to address a number of the key concerns and issues still surrounding Brexit as the end of the transition period draws near. Places are still available for those interested in discovering more. For further information and a clear guide on the areas that you should be focussing on in relation to Brexit, visit our Brexit hub