ENTERPRISE & INNOVATION
Brexit or bust: A world of opportunity for British export
Stuart Hancock (pictured), founder and co-owner at Rick Bestwick, discusses how businesses can make the most of exporting in a pre- and post-Brexit era.
THE CURRENT BREXIT SITUATION The UK recently secured its first post-Brexit trade deal, an agreement which will boost exports to Africa. It was welcome news for the business industry, which remains in limbo as the UK’s exit from the European Union draws closer. Trade negotiations between UK and EU politicians
continue but the Government has published a series of documents to prepare the country for a no deal scenario when the UK exits the European Union on 29 March, 2019. The 24 documents released to date include advice
for farmers, guidance on product labelling and information about importing and exporting – one of the most widely discussed issues in the Brexit debate. The EU Single Market enables the free movement of
goods and people between EU states, and with the UK’s imminent departure, exactly how we will trade with other countries remains up in the air.
NO DEAL IMPORT AND EXPORT The Government says trade negotiations are progressing and a no deal scenario is “unlikely”. However, if the UK leaves the EU next March and no trade deal is agreed, the existing free movement of goods would cease. Instead, the UK would have to operate under non- preferential World Trade Organisation rules. This would have wide-ranging implications for UK businesses trading overseas, including:
• Customs duty on goods exported or imported to or from the EU, which will require classification beforehand
• An import declaration when goods enter the UK and an export declaration when they leave
• A security declaration on both exports and imports (usually made by the haulier, airline or shipping line)
• Excise goods will no longer be managed by the Excise Movement Control System (EMCS) when moving between the UK and the EU. This means that immediately upon importation, excise goods will have to be placed into UK duty suspension.
The organic food sector in particular could find itself
in dire straits, warn the Government papers. UK companies will not be permitted to export to the EU until they are certified by an organic control body which is recognised and approved by the EU. But the application cannot be made until the UK
becomes a third country – a process that can take up to nine months.
PREPARING FOR THE UNKNOWN Whatever your views on the political landscape, it is clear that for many businesses, now is the time to draw up a Plan B. For many companies, exporting could be key to building
a better future. Countries inside and outside the EU still want to trade with us. The USA is currently our top trading partner – exports to the US in 2016 were worth £100bn, more than twice as much as any other country. Australia was the first to ask for a free trade deal following the referendum result and China is said to be willing to open talks on a trade deal with the UK.
MAKING THE MOST OF THE OPPORTUNITY The global appetite for UK products is vast and clearly growing. Although it may seem daunting, particularly if you have never exported before, there are huge opportunities to trading overseas. One of the most obvious reasons is to increase sales. But exporting could also help to grow your business while offering stability. Widening your customer base spreads your risk – and in unpredictable times this has to be something seriously worth looking into. With only months left until the UK leaves the EU,
identifying and growing export opportunities now could safeguard your business, particularly in the event of a no deal scenario. The Government has advised drug companies to
stockpile six weeks’ worth of medicine and consumers to bulk buy food in preparation for a no deal Brexit. Take note if your business relies on import and export. Getting ahead of the game now could ensure you have
enough product where you need it in the event of panic buying, delays in the supply chain or at customs during the Brexit process. An export partner can be the crucial link to opening up
international trade for your business. Not only will they already have the licences and expertise in place, they can also offer invaluable support while also helping to strike up new relationships.
Rick Bestwick, part of the Magnavale Group, is one of the UK’s leading temperature controlled food specialists.
business network October 2018 51
‘With only months left until the UK leaves the EU,
identifying and growing export opportunities now could safeguard your business’
FEATURE
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