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Are you Resourced for the Administration Burden of Brexit?

05 Feb 2019

Brexit Administration PlanningIt 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.



Issue

Department Potentially impacted

Administrative Impact

EORI Number

Import, Finance

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.

Rules of Origin and Documentation

Purchasing, Import, Export Sales

Understand any preferential rates you currently benefit from (import or export)

Added admin burden to prove origin under future agreements.

Customs Duties

Purchasing, Finance, Imports. Export Sales

Review commodity classification codes and understand current and potential future duty rates.

VAT

Finance

Account for Import VAT in a no-deal Brexit scenario

Distributor agreement review

Export Sales

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

Employee status

HR

Employee review and feedback gathering. Concerns over Brexit and personal impacts.

Settled status applications

Future recruitment requirements.

Simplified Customs Procedures

Purchasing, Importing

AEO application if appropriate

Customs warehousing review

Deferment account management.

Apply for and manage simplified customs procedures

Customs Comprehensive Guarantee administration

Regulatory Framework

Compliance, Export Sales, Import Purchasing

If there is much divergence by the UK from the EU’s legislative framework there could be more compliance administration.

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
 
For more information, read 'Get ready for whatever Brexit has in store for us' by Jane Cattermole and the 'Business Planning for Brexit' guide by Allie Renison.  

You can also join The Brexit hub- www.iod.com/brexit

Remember to attend our IoD Brittelstand Symposium on 13 March led by our Brexit expert Allie Renison- https://www.iod.com/events-community/events/event-details/eventdateid/12462

For extra member support, visit our IoD Information Service, providing expert confidential advice, research, and legal and tax helplines- www.iod.com/information 


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