Customs: Your No-Deal Brexit Trade Assessment
How would a no-deal Brexit affect your business?
After lengthy negotiations and political debate, there is still no agreement between the UK and the EU on post Brexit customs arrangements. Businesses are now considering the impact of a possible no-deal Brexit.
In a worst case scenario, the UK and the EU will trade with each other under WTO rules, which means that customs duties and customs declarations will come into force at both ends of UK-EU supply chains.
Assessing the cost of a no-deal Brexit
BDO has created a Brexit Customs Cost Tool, which will identify the key trade and customs issues British exporters and importers will face.
The tool is powered by up to date duty rates according to WTO and will tell you:
- Annual values and duty costs by origin
- Annual duty costs – top five commodity codes
- Highest duty rates by country for top five commodity codes
- Duty costs for imports: origin and commodity codes
- Customs Declarations required
- Actions that require addressing.
What information does the tool need?
The tool requires minimal input from you – all you need to do is send us your most recent Intrastat reports, in xls or csv format, and we will input this into our tool to generate a customised report with illustrative graphs quantifying and explaining your costs.
In addition to this, the tool can also compare the current position to the future forecast. This will require a spreadsheet listing all current imports and exports to provide the data needed to demonstrate the comparison.
If you already subscribe to MSS reports (HMRC’s monthly/quarterly spreadsheets from HMRC summarising what has been imported/exported under your name, including commodity codes, values, customs procedure codes, etc.) that would provide the necessary information.
The report can be used to validate your own business impact assessment, or as a starting point for an action plan where we assist you to identify mitigating strategies for your particular business situation.
Even if your suppliers or customers would bear these costs as a result of your agreed freight terms, it is crucial that you understand what these costs would be: any added cost to the supply chain will have a business impact on you – directly or indirectly.
Don’t leave Brexit preparatory work to last minute – take action now to prepare for the worst-case scenario for customs costs.
For more information on the Brexit Customs Cost Tool and how BDO can help you plan for Brexit, get in touch one of our customs specialists listed above.