Risk of hard Brexit much greater, take action

18 January 2019 - It will certainly not have escaped your attention: on 29 March 2019 the United Kingdom will leave the European Union. The risk of a ‘hard Brexit’, i.e. without any kind of transitional arrangements, has become much greater because the Brexit deal has not been approved by the UK parliament. For companies that trade directly or indirectly with the UK, a hard Brexit can have serious practical consequences, even in the short term.

How can you prepare?

We have seen in practice that many companies are still not sufficiently aware of the practical consequences of a hard Brexit. Did you know, for example, that if you don’t already have a customs ID number, in just over two months’ time it will be virtually impossible to export or import goods to or from the UK? And who will pay for the damage that arises if you fail to fulfil your delivery obligations (on time) because the goods are stuck at the border?

If you take action now, you will perhaps be able to pre-empt such negative surprises. Our advisers can help you to detect ‘blind spots’ and formulate urgent actions. Our practical Brexit impact analysis will cover the following questions, for example:

  • What are the delivery conditions of your own company and of your customer / supplier in the UK?
  • What is your current process for customs declarations?
  • Might an AEO licence be beneficial for your company?

What are the consequences?

Brexit will have a big impact. For your company, it could involve, for instance, adverse effects on the cash flow and the administrative burden. Examples might include having to pay import duties and fulfil extra customs formalities, with the consequence of stricter checks at the border. Brexit also raises questions about such matters as (contractual) liability for delayed consignments or different requirements that vehicles and drivers may have to meet in the case of freight transport between the UK and the continent.

Want to know more?

Would you like to know more about the consequences of Brexit (and a hard Brexit in particular) for your company and how you can prepare? Feel free to contact Raimo Kool via email or by telephone: +31 (0)88 277 15 05 or Jeroen van der Put via email or by telephone: +31 (0)88 277 15 15. They will be happy to help you.