BUSINESSES have been told they should act “urgently” to prepare for a hard Brexit from March 30, from when the UK will be treated as a non-EU country.
With no withdrawal agreement in place, a European Commission business briefing warns firms that Brexit will affect them if they buy or receive goods or services to or from the UK, or if they move goods through the country.
Without a transitional period or a “definitive arrangement”, trade relations with the UK will be governed by World Trade Organisation (WTO) rules from the end of next month.
The notice warned that this will have a number of effects: “Customs formalities will apply, declarations will have to be lodged and customs authorities may require guarantees for potential or existing customs debts.
“Customs duties will apply to goods entering the EU from the United Kingdom, without preferences.
“Prohibitions or restrictions may also apply to some goods entering the EU from the United Kingdom, which means that import or export licences might be required.
“Import and export licences issued by the United Kingdom will no longer be valid in the EU.”
The notice said UK authorisations for customs simplifications will not be valid, along with Authorised Economic Operator (AEO) authorisations which were also issued by the UK.
Member states will charge VAT at importation of goods entering the EU from the UK, while exports to the UK will be VAT-exempt. There will also be changes to the rules for the declaration and payment of VAT.
The directive warns that businesses face disruption if they have not prepared, made all necessary decisions and completed all the required administrative tasks by March 30, and it has offered a lengthy checklist informing firms of the practical steps they should take “as soon as possible”.
It said affected firms should ensure they have staff trained in customs matters, the technical capacity and customs authorisations, such as those for special procedures.
According to the Federation of Small Businesses (FSB) Scotland, most firms are unprepared for Brexit.
FSB Scotland’s external affairs manager, Stuart Mackinnon, said: “A variety of survey work – including our own – suggests that only a minority of firms have taken appropriate steps, which is perhaps understandable given recent confusion.
“That’s why we need to see political decision-makers do everything they can to avoid a no-deal scenario in just a few short weeks’ time.
“Governments north and south of the Border have launched campaigns to encourage firms to prepare for the possibility of a no-deal Brexit at the end of March.
“So it is perhaps unsurprising to see the European Commission provide advice for EU firms that trade in the UK. We’d encourage every smaller business to do what they can to get ready for this eventuality, and it is important to remember it isn’t just export businesses that need to prepare.”
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here