It is extremely important that businesses put the political wrangling over Brexit to one side and focus on the practical things they can do to prepare for whatever the outcome may be.
Having carried out many Brexit Impact Analyses for SMEs, IoD Suffolk Brexit Ambassador & Director of Your Export Department Ltd. Jim Fanshawe has reviewed many aspects of business that are affected by Brexit.
Although all companies will face different issues in preparing for Brexit, the one requirement that every single company has to address is their administrative capability.
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Issue
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Department Potentially impacted
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Administrative Impact
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EORI Number
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Import, Finance
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Easy to apply for EORI number and relatively quick but essential in the case of a no-deal scenario. Companies currently only trading within the EU may not realise the need to have one.
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Rules of Origin and Documentation
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Purchasing, Import, Export Sales
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Understand any preferential rates you currently benefit from (import or export)
Added admin burden to prove origin under future agreements.
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Customs Duties
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Purchasing, Finance, Imports. Export Sales
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Review commodity classification codes and understand current and potential future duty rates.
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VAT
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Finance
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Account for Import VAT in a no-deal Brexit scenario
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Distributor agreement review
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Export Sales
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Review of sales price impacted by currency fluctuations.
Review Incoterms® built into contracts in light of potential future duty payments.
Lead time commitments in light of possible border delays
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Employee status
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HR
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Employee review and feedback gathering. Concerns over Brexit and personal impacts.
Settled status applications
Future recruitment requirements.
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Simplified Customs Procedures
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Purchasing, Importing
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AEO application if appropriate
Customs warehousing review
Deferment account management.
Apply for and manage simplified customs procedures
Customs Comprehensive Guarantee administration
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Regulatory Framework
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Compliance, Export Sales, Import Purchasing
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If there is much divergence by the UK from the EU’s legislative framework there could be more compliance administration.
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The above are just some examples of the areas in which businesses could be affected by Brexit and all of them carry an administrative burden. It is only by examining the extent to which individual firms will be impacted in these areas under different Brexit scenarios that businesses can start to plan for how they will manage any additional workload identified.
Carrying out a Brexit Impact Analysis will enable firms to assess the areas of their business requiring attention and then put plans in place to manage the additional workload either through existing resources, training staff, recruitment or outsourcing some admin to a third party provider.
Written by Jim Fanshawe
Director – Your Export Department Ltd.
www.yourexportdepartment.com
Twitter: @JimFanshawe
LinkedIn: https://www.linkedin.com/in/jimfanshawe/
Tel: 07853 107499