Navigating Brexit for importers and exporters
Deal done. What next? How to adjust to the new reality.
Brexit finally got over the line last year, which with all the pandemic news now seems like ages ago.
So, what next? How can you adjust your business practices to this new reality?
It’s still critical that you get to grips with the deal and what that means for your business, our FD’s can help with key questions and answers. Many of our team work in import and export businesses and therefore deal with these issues on a day to day basis. Things are evolving and changing almost daily but we expect things to settle down in the coming months.
What does this mean for your business?
It’s now a business-critical priority to consider the impact of trading within the EU under what will be entirely new rules. That means talking to members of the supply chain to get the necessary paperwork in place in good time, avoiding any unexpected tariff costs or goods stuck at the border. You may need to setup a subsidiary or sister company in the EU.
Taking advice and working with professionals at this time can give your business the edge over competitors and save you unnecessary additional duty costs.
Some of The Key Questions you need to ask
You need to ask yourself the following:
1) Do you know your incoterms? Incoterms, is a widely-used terms of sale, are a set of 11 internationally recognised rules and conventions, which define the responsibilities of sellers and buyers. Incoterms specifies who is responsible for paying for and managing the shipment, insurance, documentation, customs clearance, and other logistical activities.
2) Do you know if the goods you sell, or the goods you buy, will meet the rules of origin so they can be imported free from tariffs?
3) Do you have an obligation to VAT register in the EU?
4) Do you need an EU/NI/GB prefixed EORI number?
5) Do you need to appoint a Customs or Fiscal representative? Often agents will have offices and personnel in all your target markets, meaning you then don’t need to have staff of your own in these locations. We have good contacts with international freight agents and can make introductions for you.
6) Do you know whether you will use postponed VAT accounting to account for import VAT in the UK? There is now a new HMRC online service that is in operation since 1st January 2021.
7) Do you know whether you will be able to delay your UK customs declarations for 6 months? This is a great cash saving offer by HM Government, which during the pandemic is saving many businesses which otherwise would be in difficulty.
If the answer is no to any of the above, then it’s time to think. Fast, FD Capital Recruitment can find you an experience senior finance professional to help your business.
Recruiting a new FD?
It makes sense for your new FD or CFO to have experience with Brexit issues, that is where FD Capital Recruitment can help. We are a network of Finance Directors and CFO’s available for immediate start, we also are a senior finance recruitment specialist with a large number of experienced candidates on our books. Call us now on our main number for an initial chat 020 3287 9501.
How can we help?
We’re currently supporting a growing number of clients, spanning B2B and B2C, trading in either goods or digital services. Brexit impacts all. We are actively recruiting for companies with Brexit related issues so are familar with the challenges and have candidates with the requisite experience available.
We map out and review our clients’ overall supply chain structure to understand the impact of Brexit. It really doesn’t need to be described in a more complicated way than that, so, let’s keep it simple.
The approach our FD/CFO’s take which then helps clients, is to understand the following key factors:
1) Whether clients can satisfy the rules of origin rules to take advantage of the preferential tariff deal with the EU. If you bring goods into the UK but don’t then do any modification or value added work to them, they remain the origin of manufacture, if you undertaken significant work then they can then become UK by origin which means they are then free from duty for sale into the EU.
2) VAT registration requirements when continuing to trade in the EU and any mitigation strategies to streamline those obligations.
3) The moving forward import VAT obligations and goods clearance obligations at the UK and EU borders.
4) Any establishment requirements on the continent to allow you to continue to trade.
5) Optimisation strategies to reduce the additional administrative burden and underlying cost of trade through 2021.
6) Understanding and meeting any new compliance obligations.
We have contacts and experience which includes specialists in determining origin, export, and trade controls. We’re also working closely with legal experts in commercial law who focus on regulatory matters such as labelling and safety and we are in regular contact with the Department for International Trade. (DIT)
Whatever your position, we can work with you to maintain business continuity, which is all-important right now.
Are you looking for a new FD with experience of Import and Export related issues?
If so then FD Capital Recruitment are the ideal partner, we have a team of experienced FD’s and CFO’s available for an immediate start, and interested in long term opportunities both Part-Time and full time. We specialise in the London and West Midlands areas so call use today and we will find you the perfect candidate.
We also offer specialists in a number of other disciplines, these include Business Turnaround specialist and E-Commerce specialists, their skills can make a big difference to businesses going through periods of stress or seeking to make the most of the digital market place.
Based in Great Portland Street, London we are centrally based and so its easy to meet for a face to face chat if you prefer that to a zoom or teams call. We also have a small presence in Shropshire from which we can meet anywhere in the West Midlands.