Guide: Are you ready for Brexit?

Overview
Camilla Jacobsen
by Camilla Jacobsen 22/09/2020

If your business is located within the EU and does trade with the UK, Brexit will affect you. Here is everything you need to know to prepare your business for the UK’s exit from the EU.

Guide: Are you ready for Brexit?

The United Kingdom has chosen not to apply for an extension of the transition period which was set at the beginning of 2020. This means that the period will end in a few months, and the UK will say a final goodbye to the EU on 31 December 2020.

If you import from or export to the UK, you need to be aware of the potential consequences of Brexit. This small guide will help you in taking the important steps needed to protect your business.

Trading with the UK from 1 January 2021

Unless the EU and the United Kingdom enter into a trade agreement, from 1 January 2020 you must follow the general rules of trading with countries outside the EU, also called “third countries”. If a trade agreement is not achieved, which is referred to as a “no-deal Brexit”, you must pay special attention to the following areas:

First and foremost, it is important that the tax consequences of Brexit should be factored into planning in order to avoid unexpected tax costs. When the UK leaves the EU, the EU’s common system of value added tax will no longer apply to the United Kingdom.

Depending on the UK’s exit from the EU, there may be other issues that you need to be aware of, including product and branding requirements, packaging, and marketing rules. Therefore, we recommend that you regularly check the UK government’s website if you need to export to the UK.

Are your delivery options ready?

It is important to be aware of future trade conditions regarding the British market, but that is not the only thing you should take into account. Additionally, you need to make sure that your delivery options are geared towards the new environment. As already described, Brexit means new requirements and the need for special adjustments when it comes to trading with the UK. Therefore, it is particularly important that you can handle customs clearance and new VAT conditions in your webshop and in your order handling.

At the same time, you should be prepared to update the delivery methods on your webshop and possibly make an adjustment to your delivery prices, as it will most likely be more expensive to ship to the UK.

Handle customs procedures in Shipmondo

With your Shipmondo account, you will be able to create an overview of the many new documents, including a trade invoice and/or pro forma invoice, which may become a necessity in your future trade with the United Kingdom. When you send through Shipmondo, you will automatically be asked to fill in the relevant documents, thus ensuring that the documents are filled in correctly. Besides, you can pre-fill your customs information by using shipment templates, and so automate the customs declaration process.

Send to the United Kingdom today

You do not have to wait until the Brexit-deal is in place to send packages to the United Kingdom through Shipmondo. Create a free account and send your first package this very day! If you have your own carrier agreement send us an email at support@shipmondo.com and we will set it up for you.

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