08 Jan All You Need to Know About Brexit Implications on Your business
Things are not yet fully clear with regards to UK and EU trade even though we are in 2021. Other things are still undecided yet, like what to anticipate next. Brexit will jolt almost every business in the UK but traders and EU importers will experience the impact of Brexit rather more directly.
Until now, businesses are used to the free movement of goods between the EU and the UK. The hospitality industry is fearing that they will not be able to recruit employees from the EU. Traders are worried about the possible delays of the goods on ports.
The implications of Brexit are long term. We will evaluate the direct impact of Brexit on your business.
Marketplace and commercial issues
We are into the start of the new year and many businesses are already feeling the heat as a result of Brexit. Businesses are witnessing a change in the labour market. Currency is also experiencing the impacts of Brexit. Supply chains of certain goods will experience hurdles. So, businesses will go through some hard initial months.
Legal and regulatory uncertainty
New regulations are replacing the EU laws and this will affect future trade agreements. Businesses are also facing legal uncertainty. Although, the UK government has introduced a trade transition period until July 1st, 2021.
Supply chain issues
Due to the new border regulations, the supply chain will get hurt. New tariffs and duties are in place. Until an agreement is reached between the EU and UK, the goods will be treated under non-EU import regulations which means higher security checks and duties.
If the free trade agreement is not reached between the EU, the goods trade will continue under the World Trade Organization (WTO) terms. The UK may go for individual agreements with EU countries. This will affect the cross-border transit due to different dealings at the border.
Tariff and trade requirements
Importers and exporters who only deal with EU products need to adapt to new regulations. Their products will be treated like other non-EU countries. They will have to incorporate new measures to deal with imports.
They will have to adapt the software to access the CHIEF system which is for custom return declaration. Under the trade transition period, they will get some months to prepare. Still, this will impact the businesses.
Human resource requirements
EU citizens working in the UK may face difficulties. They may have to fulfil additional requirements to travel, work, and reside in the UK.
Sources of funding
Brexit transition time is over and it means no more EU funding. This will change some administrative requirements.
Brand names and design rights
Brexit will change the right laws. Previously, traders enjoying rights laws for trademark/ designs will need to reapply for separate UK rights laws. The existing one will change.