EU Exit Hub

It is important for businesses to start taking action to prepare for new rules that will come into effect from 1 January 2021, even if you do not trade with or do business in the EU.

To help you get ready, check our advice below on staff employment, business travel, exporting, importing, international trade paperwork, costs, logistics, data protection, e-commerce, accounting and auditing, public procurement, intellectual property and taxation.

Key steps to take now

  1. Visit gov.uk/transition for a personalised list of steps to get your business ready.
  2. Review your staff and hiring needs to ensure you’re ready for the UK’s new immigration system and new requirements for travelling to EEA countries.
  3. Review your supply chain. If you are a buyer or seller, it is important to understand how logistical and financial changes for businesses across your supply chain will affect you.
  4. Review your contracts to check for any terms that refer to the EU, rely on EU regulation or might need to be reviewed in light of the UK’s exit from the EU.
  5. If you receive personal data from contacts in the EEA, you may need to take extra steps to ensure this data can continue to flow legally (see below).

The EU Exit Hub is supported by re:TRADE

re:TRADE provides companies with the single solution for shipping, customs clearance, and VAT registration and reclaim. We make it simple, compliant, and cost-effective to move goods across borders after Brexit. re:Trade is proudly powered by VAT IT, the largest regtech group in the world.

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LCCI Member Support

LCCI members can access and provide expert advice on EU exit preparedness through our ChamberConnect: Ask the Expert service.

Members can also direct queries to our EU Exit Member Helpdesk by completing this form.

Information and Resources

Employing staff

It is advisable to start considering your skills and hiring needs, and preparing for the steps you will need to take to hire people from outside the UK if necessary.

A new UK immigration system will be introduced from 1 January 2021. All EU and non-EU citizens who wish to work in the UK from this date will need to apply under the new points-based system. Check this Government information for further details. 

If you currently employ an EU, EEA or Swiss citizen, they must apply before 30 June 2021 for settled status in order to continue living in the UK. Application details are available here.

Employers looking to hire people from outside of the UK will need to register as licensed sponsors.

Business travel

Travelling to the EU, Switzerland, Norway, Iceland and Liechtenstein will be affected after the transition period ends. The Government’s business travel guidance page outlines key factors to consider ahead of travel scheduled on or after 1 January 2021.

It is also advisable to check the following guidance to prepare for expected changes:

Exporting

For exporting to the EU after 1 January 2021, check this step-by-step guide. For exporting to non-EU countries it is advisable to check this country-by-country guide to find out how exporting goods and services might change as the UK negotiates new and continuity trade agreements.

Certificates of origin may be required for exported goods. Suppliers should consider whether customers need proof of where content is sourced, and businesses buying from suppliers should also review where materials are sourced.

LCCI is the largest issuer of export documents in the UK, providing a range of international business paperwork, including certificates of origin. Click here to find out how we can help you.

Businesses should also check if permission is required to export intellectual property protected products from the UK to the EU after the transition period ends.

Detailed advice on paperwork, costs and logistics is available further below.

Importing

From 1 January 2021, there will be standard rules for bringing goods into the UK from EU and non-EU countries.

In addition to acquiring an EORI number (see below), businesses will need to declare imports to customs and pay VAT and duty as appropriate.  An import license or other form of authorisation may be required for goods such as medicines and animal products. Check this Government guidance for more details.

This step-by-step guide will help you prepare for importing from the EU.  

Businesses that import goods regularly may benefit from a duty deferment account. This allows for a single monthly payment to be made through Direct Debit, instead of paying for individual consignments. To find out how to set up a duty deferment account, check this Government advice.

Detailed advice on paperwork, costs and logistics is available further below.

International trade - paperwork

LCCI is launching a customs declaration service on 1 January 2021. Find out how we can help you here.

If you do not have a UK EORI number, you should  apply for one here. Costs and delays are likely without this, and it is advisable to apply as soon as possible.

The right paperwork will be essential for importing and exporting goods from 1 January 2021. For detailed guidance on the international trade paperwork you will need, including contracts, licences and declarations, check this Government advice page.

Businesses should familiarise themselves with Incoterms (international commercial terms). This is important for ensuring the right contract terms are set between importers and exporters, and to clarify responsibilities, risks and costs. Check International Chambers of Commerce guidance for more information.

International trade - costs

Tariffs may impact the costs of trading with EU and non-EU countries from 1 January 2021. Check the following guidance to find out whether this will affect your costs:
- Exports   
- Imports

This Government information explains the impacts of trading under World Trade Organisation (WTO) rules and provides information on UK trade agreements. Note however that tariffs in UK-EU trade may not apply depending on whether a trade agreement has been successfully negotiated.

If you are a buyer or seller, you should check whether tariffs might impact businesses in your supply chain and therefore affect your own costs.

International trade - logistics

New border customs checks could cause delays. Businesses should check how prepared their supply chains are for potential delays, the costs that could result from these delays and whether changes to inventory and storage are necessary.

Hauliers should check that drivers have the correct documentation to drive in the EU after 1 January 2021. An international driving permit (IDP) or an additional licence may be required. Insurance and registration requirements may also apply.

Detailed advice on the transportation of goods is available on this Government portal.

Trading in services

EEA regulations will no longer apply to UK cross-border services trade from 1 January 2021.

As a result, any services sold by UK businesses to parties in the EU will be considered to originate from a ‘third country’ and you may face new regulatory, administrative and legal barriers.

It is important to understand the guidelines of the country in which you are selling services. Check this country-by-country guide for advice.

If you provide services in the EU, you must ensure that your qualifications are recognised by EU regulations to practice or service clients.

For further information, including on owning or managing businesses registered in the EU and VAT on digital sales, check this Government guidance.

Data protection

While rules governing data protection from 1 January 2021 are not yet set, it is critical for businesses that process the personal data of stakeholders, customers, and any other contacts, to be prepared for changes.

To understand how you can best prepare, please check the Information Commissioner’s Office (ICO) guidance below:

E-commerce

Businesses are advised to start preparing immediately for the impacts of potential changes to rules governing online activity in EEA countries. The eCommerce Directive, which is the EU’s legal framework for online services, will not apply to the UK after the transition period ends. This step-by-step guidance will help you ensure your business is compliant.

The Government also recommends seeking legal advice. LCCI members can access free advice from a legal expert through our ChamberConnect: Ask the Expert service.

Accounting and auditing

It is important to be aware of changes to the UK’s reporting regime from 1 January 2021.

Businesses should check whether it will be necessary to make changes to how accounting and reporting is undertaken to avoid potential breaches of reporting requirements in EEA countries.

The following Government guidance sets out how you might be affected:

Taxation

Payments of interest, royalties and dividends between UK and EU businesses could change. Check this Government advice to find out how you might be affected.

If you will be earning money while carrying out any work in the EU, you might need to inform HMRC. Find out more information here

The VAT treatment of goods arriving from outside of the UK will change from 1 January 2021. Check this Government guidance for full details.

Businesses that wish to hold trading stock in an EU country must register for VAT in that country. You may also be required to appoint a Fiscal Representative who is jointly liable for any VAT owed.

Intellectual property

Parts of intellectual property (IP) law will change from 1 January 2021. To understand how trademark protections and registrations, copyright law and parallel trade will be affected, check this Government guidance on how IP rights are changing.

Businesses should also check if permission is required to export intellectual property protected products from the UK to the EU after the transition period ends. 

Public procurement

Businesses that sell or are looking to sell goods, services or works to public sector bodies in the EU should consider how they might be affected by changes to market access.

From 1 January 2021, businesses will be able to find public procurement notices by contracting bodies in the UK via a new e-notification service called Find a Tender. Further information is available here.

Information on overseas procurement opportunities is also available here.

More Information

LCCI Events

LCCI’s events include webinars covering a range of topics to help you navigate EU exit matters.

 

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Additional Resources

You may find these guides and videos on customs, rules of origin and tariffs helpful. This content was published in October 2019 and members should contact the EU Exit Helpdesk for updated information.