Exporting After Brexit
Exporting after the Brexit decision from the UK will be effected, however it is yet to be determined exactly what the effects might be. As no member state has left the EU under these circumstances before, the UK is in fairly unchartered waters.
Therefore, whilst we know that the process of exporting from the UK to EU countries will change, it is not possible to say now to what extent these changes will effect exporters. The UK will be given two years to negotiate the details of their exit with the EU. This is based on Article 50 of the Lisbon Treaty, which outlines the exit of a Member State from the EU.
There are a few options for what exit strategy the EU and the UK might agree upon. The conflict may arise as the UK will want to still benefit from the free market of the EU and push for trade leniencies.
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However, the EU may be tempted to make an example of the UK to prevent more member states from leaving the Union. If the UK gets too good of a deal, this may encourage other sceptical members to consider leaving the EU more seriously.
We can expect that the final agreements will be somewhere in the middle. The UK will likely go into a bilateral trade agreement with the EU, or join the EEA or EFTA.
What will export look like?
At the moment, between the UK and the EU there is free trade. It is important to note that until the new agreements have been established, there will be no changes to the freedom of movement between the UK and EU. The status quo will remain until there have been official agreements established.
You can expect that the earliest indications of these new agreements may become evident next year, however it is likely to take the full two years of negotiation time (if not longer) until the precise effect of export will be known.
We can assume some changes based on exports to other non-EU countries from the UK and the regulations that must be complied with. You may need to submit an export declaration and, depending on the goods you are exporting, you will need an export licence.
When exporting from the UK to the EU, you will need to provide a Commercial Invoice which outlines the goods you are exporting, as well as their commercial value. You will need to pay duties based on this Commercial Invoice. You will need Commodity Codes for all the goods you are exporting out from the UK. Additionally, customs will view the Commercial Invoice and charge Customs Clearance to clear your goods in the exporting country.
Essentially, exporting from the UK after Brexit is likely to be a more expensive and time consuming process. However, we will not be certain of the extent of the changes until an agreement is reached between the UK and the EU – hopefully within the next 2 years.
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