Brexit uncertainty

With the UK’s exit from the European Union looming, the terms of any future trade deal with the EU are far from concluded.

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Brexit uncertainty

The EU Transition Period is scheduled to come to an end on 31 December, with the prospect of a no-deal Brexit at the end of 2020 still a possibility. Here, Keebles Partner Carys Thompson has advised on some of the issues that businesses should be considering and preparing for now.

What are the rules regarding country of origin for imports?

One area of uncertainty is the effects of Brexit on country of origin, something which could have critical implications for businesses supplying to customers that require goods with European origin.

Rules to establish the country of origin of imported and exported goods frequently help determine the rate of duty and customs conditions for those goods. Customers often require a particular country of origin for goods they are purchasing to meet their (or their customers’) requirements, to ensure qualification for lower or nil customs duties for onward supply.

Businesses need to be aware that the matter of whether goods produced wholly or substantially produced in the UK will lose their European origin status. This will almost certainly be the case if the UK leaves the EU with no-deal at the end of 2020.

Supply chain considerations

If they have not done so already, businesses whose customers require European origin of the goods being supplied should now be considering their supply chains, their importing and exporting procedures and production processes to determine any risks in this area. Expert advice should be taken to identify ways to minimise any possible adverse impact.

Defining the origin of goods can be complex, particularly goods whose production involves materials or components from more than one country.

For advice on how your business should be preparing for Brexit, contact Carys Thompson – email carys.thompson@keebles.com or phone 0114 252 1485.

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