INTERNATIONAL TRADE
What the new EU trade deal means for businesses
Businesses that trade with the EU are once again in a transition phase. Leaders are delighted a trade agreement was finalised with the EU, but they’re now trying to adapt to the new environment and how it applies to their particular circumstances. The Chamber’s director of partnerships and international trade expert David Pearson (pictured) explores some of the issues that have already come to light in the first weeks of this new world for East Midlands businesses.
In order for businesses to benefit from tariff and quota-free trade with the EU, exporters need to certify the origin of their goods. This means they need to know
their goods originate from the UK or the EU, but this can also mean they need similar certifications from their supply chain. This will be new to most
businesses and, thankfully, easements were agreed on both sides, which means these certifications won’t be checked during 2021 – but businesses are still expected to have the necessary confirmations in place. Firms will therefore need to take positive
actions now and may need help to get fully organised over the next 12 months.
Challenges are being experienced across the industry to make sure
exports and imports passing across the border have the correct customs declaration in place before the truck or carrier arrives at the port. At the time of writing, I’m pleased to say the Chamber has a 100%
accuracy record for those customs declarations that we have processed on behalf of our clients, but in some instances businesses and customs brokers are still trying to get to grips with the requirements of the EU customs officials. This seems to be particularly difficult and relevant when moving foodstuffs across borders.
“It’s not just the tax incentives and creating jobs in our region, but the opportunity to do more international trade. “I’ve seen it work in other parts of the world like Dubai, where it opens
up new markets. “Raw materials can be stored there. One of the biggest challenges during
Covid-19, particularly in manufacturing, was quickly sourcing the raw materials and ingredients. “So if you have a stockpile of raw materials in a free trade zone ready to
be directed to the UK or international markets, this will really help in the future. “There’s some great opportunities for us to create innovative businesses
in that area. It will help bring wider inward investment from the UK and internationally as more companies may look to use the East Midlands as a base.”
Dr Nik Kotecha OBE, chairman of Chamber strategic partner Morningside Pharmaceuticals Ltd, which manufactures and supplies medicines to the UK and international export markets, and Department of International Trade export chairman
EORI NUMBER CONFUSION Businesses involved in international trade will be familiar with the need for an EORI (Economic Operators Registration and Identification) number and, despite efforts from the UK Government, there still seems to be some confusion over which EORI number is required for moving goods to or from Northern Ireland. In these cases, businesses need an EORI that starts with XI – but to
get that, you need to already have a GB EORI. We’ve seen some instances of EORI numbers not being recognised by customs authorities, despite the EORI being issued by them in the first instance. Anecdotally, we are hearing that some importers in the EU are
asking for additional informal documents to give them reassurance when importing goods from GB. Businesses are, in some cases, spending considerable time to craft these informal documents to suit each individual importer.
Remember that, as ever, the Chamber is here to help you through your challenges – whether that be through formal training of your staff or just answering the individual query. Give us a call on 0333 320 0333 (option 4) or email
international@emc-dnl.co.uk
business network February 2021 59
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