Brexit: all or nothing!

We covered the topic of Brexit back in August, but it’s an ongoing concern for businesses throughout Europe. A draft Brexit deal is now finally on the table, but companies on the mainland can’t breathe a sigh of relief just yet.

 

 

Provisional agreement

The provisional agreement stipulates that the UK’s membership of the customs union will be extended if no deal has been reached on a new trade relationship with the EU countries by the end of the transition period. This will avoid having to establish a ‘hard’ border with physical border checks. As a result, there will be minimum disruption to post-Brexit trade. But the draft deal is no guarantee; it still has to be approved by both the European Parliament and the British parliament.

 

Worst-case scenario: no deal

Although the provisional agreement sounds promising, in reality anything could still happen. It is a matter of all or nothing. In the ideal case, the industry will hardly notice any changes. In the worst-case scenario, your import and export activities will grind to a halt.

 

Be prepared

Last time, we gave you some tips to help you prepare for the potential post-Brexit chaos. Nanette van Schelven, Managing Director of the Dutch Customs Administration, also warned logistics transport companies to register with the customs authorities in good time. According to Van Schelven, as a result of the Brexit, 35,000 companies will have to deal with the customs office for the first time ever in order to continue exporting to or importing from the EU. If these companies wait until the last minute to register, the Customs Office cannot guarantee that they will all be dealt with in time.

 

Because so many aspects are still uncertain, many businesses are unsure of which preparations they need to make. That’s why at IDS we’re helping our customers to gain insight into all their freight flows, in order to evaluate the potential Brexit-related risks. We analyse various scenarios based on the possible outcomes of the current negotiations. As soon as the real implications of Brexit become clear, we will already have the most suitable solution lined up and ready for rapid implementation.

 

If you would like to know more about our Brexit-related services, contact Arno Spoek at IDS on arno.spoek@idsnl.com or +31 (0) 88 437 4370.