Preparing your business for a ‘no deal' EU exit with the Partnership pack

28.01.19 09:46 AM By Sonia Kisbee

With the March deadline long gone and October 31st now the new deadline for leaving the EU, despite the shenanigans in parliament, a potential ‘no deal’ Brexit remains a distinct possibility, so what does this mean for you and your business? 


In a recent report from the IOD they stressed the importance of businesses taking this delay as an opportunity to prepare for a potential 'no deal'. The IOD stressed the importance of business leaders not relying on politicians to deliver a resolution, but to ensure they were fully prepared and understood their potential exposure from a 'no deal' scenario.


To summarise a ‘no deal’ Brexit, simply means the UK and the EU have been unable to reach a withdrawal agreement and as a consequence there would be no 21 month transition period for us to exit the EU. However the ongoing debate and dispute among all those involved, since Article 50 was triggered has shown that in reality this is no simple matter. If ‘no deal’ happens, then we would have to respond immediately to changes as a result of leaving the EU and this will affect all of us - consumers, businesses and public bodies.


What will be the ‘no deal’ effect?

Brexit and Trade

Trade

  • The UK will revert to WTO rules on trade and whilst no longer bound by EU rules, would face the EU’s external tariffs, which means businesses could place tariffs on goods imported from the EU. 
  • It is a huge and time-sensitive challenge for the UK to negotiate and sign 40 new trade agreements which the EU currently has with more than 70 countries. This if further complicated by the fact that the model for these future trade relationships is still not clear.
  • Some British-made products may be rejected by the EU as new authorisation and certification might be required.


Laws

  • Relevant EU laws would be transferred over. Britain would no longer have to adhere to the rulings of the European Court of Justice, but it would be bound to the European Court of Human Rights, a non-EU body. 

People

  • The UK would be free to set its own controls on immigration by EU nationals and the EU could do the same for Britons, which could result in long delays at borders if passport and customs checks are heightened. 
  • Professionals working in the EU might find their qualifications are no longer recognised, meaning they are no longer able to practice.
  • Flights to the EU could be grounded as the necessary safety confirmations to cover both ends of the journey might not be in place. 
  • The implications for the 1.3 million Britons in EU countries and 3.7 million Europeans in Britain – in terms of their rights to live and work would be unclear.


Money

  • The Government will no longer need to pay the annual £13 billion contribution to the EU budget. However, Britain would lose out on some EU subsidies such as the Common Agricultural Policy which gives £3 billion to farmers. 



The Irish border

  • This has become one of the most contentious issues relating to Brexit and as a result of 'no deal' would become an external frontier for the EU. The controversial Backstop agreement which looks to maintaining an open border in the event of ‘no deal’ continues to be debated.
What is the Partnership pack and how can it help you and your business?

The Partnership pack has been published by the UK government and provides a high-level guide to processes and procedures that are likely to apply to cross-border activity between the UK and the EU in a ‘no deal’ scenario. Whilst the government do not want a ‘no deal’ scenario, they have continued to prepare for a range of potential outcomes which includes the ‘no deal’ scenario and this includes 106 specific technical notices to help businesses, citizens and consumers prepare for October 2019.

Designed to support businesses and individuals to prepare if we exit the EU without a deal, the pack explains:
  • How trade, processes and regulations at the UK border will change after 31 October 2019​
  • What traders, businesses and individuals operating at the UK border will need to do from 31 October 2019

You will need to consider:
  • How you need to adapt your activities to comply with new systems, processes and control
  • Assess the impact of any changes on your business
  • Consider whether you need to recruit and train additional staff
  • Stay up-to-date with any changes by registering for email alerts. Click here to add your email address, select ‘Submit’, select ‘Add subscription’ and choose ‘EU Exit’ then select ‘Submit’.

Customs, excise, VAT and regulatory changes


If the UK exits the EU without a deal, UK businesses will have to apply customs, excise and VAT procedures to goods traded with EU, in broadly the same way that already applies for goods traded outside of the EU. The UK intends to establish an independent trade remedies system by the time the UK exits the EU. There will also be implications for a range of specific goods regulated under EU legislation.


Find out more here: Customs, excise, VAT and regulatory changes you need to know about if there is no deal

Guide to Exporting

A step-by-step guide to help businesses understand the key actions that UK business will need to carry out in order to continue trading with EU businesses, should the UK leave the EU without an agreement.


Click to download a PDF version - Preparing for a 'no deal' EU Exit - step-by-step guide to exporting

Guide to Importing

A step-by-step guide to help businesses understand the key actions that UK business will need to carry out in order to continue trading with EU businesses, should the UK leave the EU without an agreement.


Click to download a PDF version - Preparing for a 'no deal' EU Exit - step-by-step guide to importing

What to expect on day one of a 'no deal' scenario


Individuals

  • The passport rules for travel for most countries in Europe will change if the UK leaves the EU on 31 October 2019 without a deal, so if you travel to Europe for work or leisure, make sure that your passport meets the new rules and renew your passport in plenty of time before travel is necessary. If you are booking travel to Europe after the 31 October 2019, use the online calculator to check if your passport has enough time left.
  • If you are a business, ensure your employees are aware of any new passport rules and stay up-to-date with any changes by registering for email alerts. Click here to add your email address, select ‘Submit’, select ‘Add subscription’ and choose ‘EU Exit’ then select ‘Submit’.


Individuals travelling with pets

  • If the UK leaves the EU without a deal in October 2019, it would become a third country for the purposes of pet travel. In a ‘no deal’ scenario, pets would continue to be able to travel from the UK to the EU, but the requirements for documents and health checks would differ depending on what category of third country the UK becomes on the day we leave the EU. 
Traders

Service industries

  • Businesses that trade with the EU will broadly follow the same customs controls as businesses trading with the rest of the world – so they will need to adapt their business to comply with these systems, processes and controls.
  • Find out more here:

Transporters

  • The trade that you carry out with the EU will broadly follow the customs controls that apply for the rest of the world. So, you will need to adapt your business to comply with these new systems, processes and controls.
  • Find out more here:

Other operators at the UK border

  • Businesses that trade with the EU will broadly follow the same customs controls as businesses trading with the rest of the world – so they will need to adapt their business to comply with these systems, processes and controls.
  • Find out more here:
  • The trade that is carried out with the EU will broadly follow the customs controls that apply for the rest of the world, and there is likely to be an increase in demand for customs agents’ services from traders who had previously only worked within the EU or traded both within the EU and with the rest of the world. So you will need to adapt your business to comply with these new systems, processes and controls - Customs agents - what to expect on day one of a 'no deal' scenario


For more information on the export of specific products, the movement of animals, plants or timber and specialist traders, you can find out more here


Get Help & Advice from the Experts!

Guidance as well as online information about exporting is widespread, so it is vital that you make the most of the knowledge that is available from experts. This will be especially important in the light of Brexit and the impact this will have on both European and global trading markets for UK exporters.


– Use Kompass Business Data to research and find contacts in your target markets.

– Department for International Trade Advisers should be considered key contacts for help and advice.

– COBCOE helps businesses by promoting international trade across Europe.

– Your Local Chamber of Commerce can help with export documentation and finance.

– UK Export Finance provides trade finance and insurance for exporting.

– AFEX market leading foreign exchange and international payment services.

– The Institute of Export gives advice, guidance, offers courses and qualifications.

– Build your brand & global online presence with Kompass Digital Marketing solutions.