The UK government has already "grandfathered" Authorized Economic Operator (AEO) into UK legislation and indicated that once customs formalities have been determined, AEO companies, like BDP UK, will receive special provisions pertaining to their own business requirements.
This is causing a surge of UK businesses to apply for AEO, however HMRC is very short staffed and does not have enough officers to process all the applications causing a backlog.
So, what are we advising our customers to do? Well, we suggest they should start making a list of the impact of Brexit on their particular business in preparation of firm regulations. For example, any company that currently ships into the UK to distribute across Europe will certainly need to take into account the additional costs of a clearance and potential duties. This will also apply for European companies doing the same and distributing to the UK. They will also need to ensure they have a division or company that will take on Fiscal Representation for their Shipments when they enter EU countries. There is also a question of whether current REACH approvals for chemical clients will still prevail in the UK after Brexit. The list can be long and arduous.
Having said that, it's not all doom and gloom. At the core of Brexit and the UK Government's stance is a deep-seated desire to foster UK trade internationally, including with the remaining EU Countries. Some in the government see that the UK will have more flexibility in establishing Free Trade Agreements (FTA) given CETA (the FTA between Canada and the EU) was significantly delayed by the Minister President of Wallonia.
No matter the outcome of the Brexit negotiations, the UK will remain a large trading nation and BDP will continue to support our clients with their international shipping needs. We all know that change is coming, and if we embrace it knowing that we will be impacted in some manner, we will continue to prosper.
*Source: BBC News
