A recent survey by the British Chambers of Commerce suggested that a concerning number of businesses have failed to properly prepare for the end of the Brexit transition period.
This Surviving and Thriving beyond Brexit Guide will detail; Top pitfalls your business needs to avoid and provide guidance on what your company needs to do to avoid these pitfalls.
>> Pitfall 1 - Do nothing and wait for clarity that will never come. The details of the UK’s new relationship with the EU continue to be negotiated. But in international trade, rule changes are never-ending. We have Brexit, Covid-19, and a whole host of other causes all over the world - for example, trade documentation changes resulting from China-US trade war, international sanctions and embargoes, AfCFTA, changes to trade barriers by trading blocks.
We do know that from 1 January 2021:
• Customs filings will be required for all UK to EU export shipments from 1 Jan 2021;
• Customs paperwork will need to be kept for all EU to UK import shipments and filed in accordance with the new UK Border Operating Model.
So businesses need to get ready to handle customs information and make sure it is timely and correct for all trade.
>> Pitfall 2 - Assuming that the costs of international trade will only get worse - it’s all relative. Customs duties and documentation costs may be going up in many areas, but keep in mind that trade rules in the rest of the world are also changing and supply chains are complex, so competing products from other countries could be hit.
Customs duties and documentation costs may be going up in many areas, but keep in mind that trade rules in the rest of the world are also changing and supply chains are complex, so competing products from other countries could be hit.
So stay alert for preferential trade opportunities, using tools such as the UK’s new export planning tool and the International Trade Centre’s (ITC) Market Access Map. Some of our clients have found that changing supply chain scenarios can change a cost disadvantage to a cost advantage.
Also, make sure you look at the bigger picture:
• Consider new markets. Try ITC’s Export Potential Map or products (different goods classification) that might be attractive now especially as currency rates change, Covid-19 disruption, etc.
• Be open to branch offices or subsidiaries, to expand your business international footprint. Taxation treaties between countries and Foreign Direct Investment incentives are changing every year and might mean there are opportunities for.
• What are your competitors exporting and importing? Using Exabler’s graphical trade explorer (Gex) can reveal some interesting details about their products and markets.
• Changes in the strength of the Pound could present opportunities in both existing and new markets. An FX Specialist can help your business identify and take advantage.
What next? The full guide will give you:
- Clarity on the key pitfalls endangering your business
- What action your company can take to avoid these pitfalls
- Bespoke support to help your business through Brexit
Click the link below to get the full Guide: