01753 776000Brexit is going to have an impact on many sectors of the UK - including the exportation of goods. Whether it’s fluctuating exchange rates or the overall impact of leaving the customs union, there’s still a great deal of uncertainty about what exporting is going to be like and how easy (or difficult) it can be.
Here’s a quick guide to exporting after Brexit.
Understandably, there are a lot of worries as many questions are still unanswered. Research has shown that businesses are considering the uncertainty over Brexit when deciding whether or not to export on an international scale - so the situation does get slightly more confusing on an EU-level as there are no unified answers or solutions.
What (Pre-Brexit) Exporting Looks Like Today
At the moment, there’s free trade between the UK and the EU so there’s minimal hassle when it comes to exporting or despatching goods. However, there’s a strong possibility that this could change following the 29th March 2019 Brexit deadline.
Currently, exporting to the EU is a relatively straightforward procedure as legislation doesn’t often change. Exporting goods within the EU does require businesses to keep up with any potential changes in how to handle VAT, the various types of licenses needed, when to report sales figures etc. But this is still a lot less onerous than exporting goods outside of the EU.
Most shipments from the UK to EU member states could be despatched without any special customs documentation, with certain exceptions. So, shipments you currently send through courier services are able to reach Europe with less hassle as there aren’t any barriers in place and the entire procedure has been made as efficient as possible by enabling the free movement of goods.
Without getting into too many unnecessary details about current and previous exporting procedures within the EU, you have to consider VAT, compliance with Intrastat, prohibitions, restrictions, licenses, duty costs and transit procedures. Despite that, the free flow of goods resulted in a seamless process.
What Exporting Could Look Like After Brexit
There’s a strong likelihood that exporting after Brexit is going to be different. However, it’s difficult to determine exactly what the effects are going to be as no member state has left the EU under these circumstances before, so it’s an unprecedented situation with a lot of guesswork involved.
So, although it’s certain that the process of exporting from the UK to EU countries will clearly change, it’s not possible to reveal the extent of the changes and how it’s going to affect exporters like you.
Many are expecting that more answers will be revealed soon but in a post-Brexit world, when you export from the UK to EU member states, in some instances, you may need to provide a commercial invoice which outlines all of the goods you’re exporting alongside the commercial value of those goods.
If this is the case, it could increase the amount of administrative work for businesses when they export to the EU.
As a result, duties will also need to be paid based on the commercial invoice and you’ll need commodity codes for all of the goods you export out of the UK. So, there’s likely to be some hassle when it comes to customs clearance as they will need to view the commercial invoice and charge customs clearance to approve the goods you send to countries in the EU.
Essentially, the main worries or predictions are that exporting from the UK after Brexit is likely going to be a more time-consuming and expensive process, primarily because of VAT and duties.
It can also result in deliveries through courier services taking longer than they currently do, so courier service providers should have plans or be ready to adjust when the outcome of exporting after Brexit is officially revealed.
As of 2017, the EU was the UK’s largest trading partner - as a whole - with UK exports to the EU totalling £274 billion, which equates to 44 percent of all UK exports. When Brexit finally does come into play, there will be a keen eye on the figures to see just how much of an impact the exit has.
Find Out More About Choosing the Right Courier Service - and Make Sure They’re Ready for Brexit
Despite the uncertainty surrounding the exportation of goods after Brexit, you’ll need to know more about the plans courier services currently have in place - if they have one at all. In the first step of your research, make sure you select a courier service that is AEO certified, as it shows that their procedures and customs controls are as robust as they can possibly be. After all, the right courier service will have workarounds to any Brexit outcome.
To make sure you stay in the know about which courier service to choose to ship your goods with in a post-Brexit world, download our guide which compares Crossflight to others. Just click on the link below to get your free copy.
