UK trade tariffs – there could be trouble ahead..
Now the deal is done – how will UK trade tariffs affect your business?
There are many reasons to celebrate the fact we have a Brexit deal rather than a no deal. However, if you import or export goods from the EU, Brexit could still be causing some challenges. Even Percy Pig isn’t safe! UK trade tariffs could affect your business. How can you reduce the disruption?
The trade deal that was agreed on 24th December with the European Union (EU) was billed as preserving its zero-tariff and zero-quota access to the bloc’s single market.
Though the new Brexit trade rules are creating problems for businesses transporting goods to and from the EU.
And it’s not just smaller businesses who have faced difficulties. Big retailers, including John Lewis and M&S have also found themselves facing problems. M&S chief executive, Steve Rowe, has outlined the problems that Percy Pig is facing. Percy Pigs are manufactured in Germany. If the pigs are then sent to the UK, and M&S send some to Ireland, it turns out they then have to pay some tax on those.
Tariffs and red tape
In some cases, goods are being delayed because of incomplete paperwork and unexpected red tape. If consignments contain more than one type of product, there must be paperwork completed for each. You will not be able to complete one set of paperwork for multiple goods.
Don’t wait until goods are ready to leave the warehouse to complete paperwork. Delays in transport could mean unhappy customers and lost revenue.
Is free trade really free trade?
In order for an exported product to qualify for tariff-free trade under the terms of the EU-UK Trade and Cooperation Agreement (TCA), you must be able to legitimately claim that goods have been made in the EU or UK. Be cautious though, if you use parts that are made somewhere else, this could affect your tariff free claim.
How can your business mitigate the risks?
To limit the disruption to your business, we strongly suggest you use the online Brexit checker at gov.uk, to make sure you have the right systems in place. Additional points to consider include:
If you’re a THP client, we would be happy to talk to you about your business and the TCA requirements. You can also find further checklists here.
About Liz Cordell
I’m an experienced copywriter, with a great attention to detail. Having previously held positions at a global publisher, a top 100 law firm and a Big Four professional services firm, I now work with clients across a range of industries. Whether it’s new content for a website or creating interesting blogs for my clients, I can create engaging copy that doesn’t take a lifetime to read.