Be prepared for the upcoming Brexit

Business organizations MKB-Nederland and VNO-NCW warn companies not to lose sight of the upcoming Brexit on January 1, 2021. Despite the fact that many entrepreneurs are busy dealing with the consequences of the corona crisis, good preparation is essential for companies that import and/or export to the United Kingdom.

Next year, the transition period will end after the UK officially leaves the EU. The current negotiations between the EU and the British are extremely difficult and there is little chance of an agreement. “That means extra costs and delays at the border,” say MKB-Nederland and VNO-NCW. “The costs may have an effect on the margins in a chain and the delay will have an effect on just-in-time concepts in the chain. The application of the rules of origin will also undergo major changes, between the EU and the UK and in the relationship with third countries. Companies must analyse what all this can mean for them.”

The two organizations advise companies to use the so-called readiness notices of the EU. These documents list the changes that will result from Brexit per sector or industry. Companies that trade with the UK can then check whether they still need to take steps before the withdrawal becomes a reality on 1 January.

Documents have also been published online from the United Kingdom to help entrepreneurs with the new customs situation, including in the report The Border Operating ModelIn the Netherlands, customs also have information bundled on the customs formalities that will apply from 1 January.

VNO-NCW and MKB-Nederland also issue a warning: “From the start of the negotiations, the European Commission has taken a strict position on the disadvantages that Brexit entails. In short, this means that there is a big difference between the old situation in which the UK was a member of the EU Internal Market and the new situation in which that will not be the case. The EU will not compensate for those disadvantages. That is why companies must prepare themselves in good time and thoroughly. Those who do not do so must bear the consequences themselves. Member States will also not be allowed to help out because that would be considered state aid. The Commission believes that there has been enough preparation time.”