First aid for Brexit

The Brexit, however it will take shape, will have a significant impact on entrepreneurs doing business with the United Kingdom. And the upcoming separation is making Dutch businesses nervous. In this article, we will point entrepreneurs with a series of tips on a number of preparations that, despite the current uncertainty about how Brexit will take shape, can already be made.

Entrepreneurs are mainly concerned that the administrative burden will increase. But the chance of delays at the border, uncertainty about import duties and taxes also make companies nervous. research The Chamber of Commerce has revealed that a significant proportion (39 percent) of entrepreneurs in the Netherlands are not yet prepared for Brexit and 46 percent are only partially prepared.

These figures are remarkable, because 81 percent of the entrepreneurs surveyed indicate that they expect a significant impact from the British departure from the European Union. And the Netherlands is among the top three biggest export losers if it turns out to be a 'no deal' Brexit. Nevertheless, good preparation in the run-up to the possibly inevitable 'deadline' of 29 March 2019 is half the battle.

Points of attention

• Depending on the form Brexit takes, entrepreneurs will be expected to start working on 1 April 2019 or otherwise from 2021. customs procedures because the United Kingdom is then seen as a 'third country'. According to estimates, around 35,000 Dutch companies do business with the British, but they often have no experience with customs matters.

  Customs says that preparations, for example to EORI number to apply or to re-configure certain software, can take several months. It is therefore advisable for entrepreneurs to start in time. To help them on their way, Customs has a step-by-step plan posted on his website.

• Another point of attention is the supply chain. It is not inconceivable that waiting times at the British border will increase considerably. It is therefore a good idea to examine your logistics chain. For example, is it worthwhile to keep extra stock in the United Kingdom?

  Or would you perhaps be better off looking for other sales areas within the EU? research (pdf) from the UK Chartered Institute of Procurement & Supply (CIPS) shows that two-thirds of EU companies working with UK suppliers are considering relocating their supply chain.

• The exchange rate risks between the euro and the British pound also pose a potential risk as the British exit on 29 March approaches. The pound has already been volatile in recent months. Therefore, consider the potential financial risks and how you can hedge as much as possible against highly fluctuating exchange rates. For example, you could consider entering into forward contracts. Ask your bank or financial advisor.

Information from governments

• The Central Government offers its special Brexit Desk website the Impact Scan Tool On. This tool promises to give you additional customized tips. Topics covered are import and export, services, transportation, supply and intellectual property.

  According to the Dutch government, the impact scan is suitable for all types of companies. The government does emphasize that this scan gives you the best advice for your company at any time, based on the situation at that time, but it does not give you a definitive answer as long as the negotiations between the EU and the United Kingdom are still ongoing.

• Also the British government offers via a website information about Brexit and the latest state of affairs. The government has documents published on the steps that must be followed if a hard Brexit does occur.

• The Netherlands Enterprise Agency has developed a special package for Dutch SMEs Brexit vouchers developed. These vouchers entitle you to a subsidy for advice on alternative markets and the consequences of Brexit for your company.

  You can receive a reimbursement of 50 percent of the actual costs incurred, up to a maximum of 2,500 euros excluding VAT. There are a number of conditions. Details about this scheme you can find at the RVO.

• MKB-Nederland, VNO-NCW and the central government also work together in the informing entrepreneurs via the portal Hulpbijbrexit.nl.

Personnel and HRM

• Companies that are British hire staff or send out staff to the United Kingdom will also have to deal with the consequences of Brexit. The Dutch employers' association AWVN inventoried in an article how they can prepare for the United Kingdom's departure from the European Union in the field of personnel policy and HRM.

  Consider questions such as 'which visas and residence or work permits are required to work legally in a country?' or 'which social security legislation is an employee subject to and can this be continued in the event of an international assignment?'.

• The European Commission has An FAQ (pdf) on the rights of EU citizens in the United Kingdom after Brexit. These agreements have been incorporated into the draft withdrawal agreement that the EU and the United Kingdom want to conclude. The EU, the European Parliament and the British Parliament still have to approve that agreement. Only then will the agreements come into force.

More first aid for Brexit

• Entrepreneurs who are struggling with the consequences of Brexit can also contact the program Brexit Buddies. This project, set up by MKB Nederland and the Ministry of Economic Affairs and Climate, offers SMEs access to experts from large companies, sectors, customs and, for example, AWVN, BCC, KvK and evofenedex. In addition to a number of meetings, a number of online sessions will be held where entrepreneurs can fire their questions at the experts.

• If you have any questions, you can also contact the Brexit counter on telephone number 0800-023 5327. You can also contact the Brexit desk contact by email.

• Do you, as an FHI member, have questions about the upcoming British departure from the EU? Please contact Andreas Meijer, Deputy Director of Branches via: a.meijer@fhi.nl. You can also use the FHI LinkedIn Group International Business ask questions and benefit from the various benefits for member companies who want to do business internationally.

• VNO-NCW has a biweekly newsletter in which the latest developments surrounding Brexit are discussed. You can subscribe here.