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Policy & Compliance
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EU Exit: commercial and IT considerations
Companies should review their contracts, with a view to whether they will be able to meet terms and conditions, in the event of a no-deal Brexit. They may also face significant challenges regarding GDPR regulations. Both topics were featured in a recent newsletter by BIFA Associate Member Holman Fenwick Willan LLP
Due to the nature of its work and that of its Members, BIFA tends to focus on freight, customs and related matters. However, there is much regulation underpinning commercial activity that is rarely considered, and is thus overlooked. During 2019, when there was the possibility of a non-
negotiated Brexit, with no transition period, we received several calls regarding contractual and IT-related issues. Also, BIFA advised Members engaged in roadfreight
movements that with new, and in some cases untested, procedures being introduced they should ensure customers understood that delays were likely and therefore delivery timeframes could no longer be guaranteed. BIFA Associate Member Holman Fenwick Willan LLP (HFW),
in a recent newsletter, provided some useful information on these wider business aspects.
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Commercial contracts The end of the transition period could lead to contracts becoming more difficult to perform (for example because the introduction of customs checks could impact on the ability to meet KPI targets in contracts for the delivery of ‘just-in-time’ goods) or less attractive to perform (because the imposition of tariffs or currency fluctuations make it unprofitable to purchase the goods at the agreed price – in the absence of agreement to the contrary, the buyer will be responsible for paying tariffs under English law). Companies should review their existing contracts to
determine their potential exposure and attempt to re-negotiate contracts where possible. It is also advisable, where relevant, to include provisions in new contracts that determine what should happen in the event that no deal on the future
October 2020
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