In order to help businesses, consider the changes that might happen following Brexit, the British Chambers of Commerce (BCC) have developed a Business Brexit Checklist. This checklist aims to help companies at both operational and board levels.
Although the European Union and the UK have not yet reached a final agreement, there are a few steps that companies can already start undertaking to plan ahead.
Over the coming weeks we will be focusing on things to look out for to get your business ready for Brexit.
Number 3: Tariffs on UK-EU Trade
Here is what Amy Cawley from the Greater Manchester Chamber of Commerce advises you to look out for regarding tariffs.
British Chambers of Commerce have been advocating for zero tariffs on trade between the UK-EU after Brexit. However, UK businesses need to be aware that if we do not reach an agreement for zero tariffs then, with those countries we currently have existing trade agreements with, we will revert to the MFN tariff (for those who do not have an agreement with the EU).
What should businesses do to prepare?
- Ensure you know the Harmonised System/Commodity Code for your products. You should also check this code regularly for any changes here: gov.uk/trade-tariff.
- Do you know the MFN EU Tariff for your products? For example, if you currently export sunglasses to Albania, the EU has a Trade Agreement with Albania meaning the duty is 0%, however, if we revert to the MFN Tariff duty will be 5%. You can see duty rates here: http://madb.europa.eu/madb/indexPubli.htm
- Understand the impact of the MFN Tariff on your cost base
If you have any questions or require more information about the above, please email firstname.lastname@example.org.