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Prepare your business to the consequences of Brexit

The UK is a key economy for Belgian entrepreneurs and will certainly remain so in the future. The consequences of Brexit will however be far-reaching. Complex customs procedures, somewhat unexpected consequences in other countries…

Read below an overview of questions that should not be overlooked and the best places to find the answers.

Last update: 30-12-2021

[:nl] Bereidt u zich op de gevolgen van Brexit [:fr] Préparez-vous aux conséquences du Brexit [:en]Prepare the consequences of Brexit [:]

The United Kingdom is no longer part of the European Union since 31 December 2019, but if you did not feel its consequences yet, it’s because the transition period ran until the end of 2020. I, 2021, the transition period is over. Therefore, the United Kingdom is now a third country for the EU, which leads to customs formalities and border controls. These tips will help you be prepared.

What are the consequences for Belgian exporting companies?

In any case, the United Kingdom will remain an important trading partner for Belgium. In 2018, the United Kingdom was the 4th largest export market for Belgian companies. And they will have to deal with more complex customs procedures than before.

The Brexit deal reached at the eleventh hour means that, under certain strict conditions, import duties are not payable on goods exported to the UK, but customs formalities and border controls are, unfortunately, a reality.

When calculating the overall origin of a good, elements produced or processed outside the EU may prevent your products from being attributed an “EU” origin.

The origin of goods: a potential problem that should not be underestimated

Brexit does not only influence UK-related import and export. Indeed, your company’s commercial relations with other countries may also be affected. The reason? Rules determining the origin of goods.

Exporting to EU partner countries

After Brexit, components produced in the UK are no longer considered as originating in Europe. This applies also to any processing carried out on British soil. When calculating the overall origin of a product, these components produced or processed outside the EU may prevent your goods from being attributed an “EU” origin. What are the consequences?

Under the EU’s free trade agreements, products of EU origin enjoy preferential access to partner countries. In practical terms, this means that import duties can be reduced or even eliminated altogether. As you can imagine, these benefits are likely to disappear if the European origin of your products is called into question.

Exporting to the UK

Goods imported into the UK are subject to import duties and quotas. Only if your products comply with the preferential rules of origin agreed between the EU and the UK can they avoid these duties and quotas. To find out whether or not a product complies with these rules, please check the agreement  or the Access2Markets platform.

For more information on the subject, you can also consult the web page dedicated to the preferential origin of goods under the EU-UK agreement.

Ask yourself the right questions around Brexit

As an entrepreneur, you know that being prepared for as many eventualities as possible goes a long way. Asking the right questions can help you anticipate many problems.

Are you familiar with the ATA carnet, particularly useful for projects, demonstrations or trade fairs?

Brexit made of the United Kingdoma third country for the EU, just like the United States or China, where customs formalities apply. This also applies to temporary exports, such as participation in a trade fair, maintenance, demonstration of a prototype… While these examples may have seemed trivial yesterday, Brexit complexifies the steps to be taken with customs. Not to mention the financial risks incurred in the event of unforeseen complications.

A simple solution? The ATA carnet. This single customs document, a real “passport” for your goods, covers all the stages of a temporary export. Interested? Consult our information on the ATA carnet or ask your Chamber of Commerce for more information.

Does your company already have an EORI number?

The EORI number (Economic Operators Registration and Identification number) enables customs authorities throughout the Union to identify an economic operator. As a result of Brexit, any company exporting to the UK will have to get one. In Belgium, this number corresponds broadly to your company number. If you would like to apply for a free EORI number, or if you want to check the validity of your number, please consult this thorough FAQ from FPS Finances.

Are you aware of the customs processes and documents that may be required of you?

The different organisations listed below can help you depending on your situation and needs.

Who to contact if you have a question related to Brexit?

The Chambers

As always, your chamber of commerce remains the partner of choice for all your questions related to international trade! Whether by answering your questions directly, organizing webinars, information sessions on the subject or specific export training, our network is there to support you. Our events page may already contain an activity that interests you! And don’t forget, if you are active in the United Kingdom, our Belgian-Luxembourg chamber of commerce there is a must!

The Belgian-Luxembourg Chamber of Commerce in Great Britain is the ideal one-stop-shop for all your UK-related questions, as demonstrated at the FIT export fair in February 2021. Couldn’t make it? Rewatch the seminar now!

European Commission

In addition to a general page on the subject, the European Commission’s website presents a list, updated in real time, of “Communications on Brexit Readiness” by sectors.

This checklist could also be helpful.

The Belgian authorities

Customs

The main Brexit page contains lots of information and a handy Brexit checklist.

The Brexit call center will answer all your questions about Brexit.

FPS Economy

You can use the Brexit impact scan to better understand the effects of Brexit on your business. Would you like to know more about the new requirements for certificates of origin? Then check this page!

Export promotion agencies

The export promotion agencies are a good source of information, whether it be FITAWEX or hub.brussels.

You can for example follow a calendar of the next changes in legislation (FR) or check what’s new in 2022 (NL).

Help needed?

Do you have any questions about Connects? Do not hesitate to contact your Chamber, we will be happy to help you.

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