With less than a month to go before the deadline (03/29/2019), we at Mercury wanted to take some time to brief you regarding the possible exit of Great Britain from the European Union (BREXIT). There are several possible scenarios, but the one that would be most disruptive to the supply chain is the scenario known as a “hard BREXIT”. In this scenario, Britain would leave the EU without a negotiated trade agreement with the remainder of the EU.
- Shipments to or from Britain would fall under Britain’s own import/export regulatory regime and not the EU’s, potentially creating lengthy customs delays for shipments to/from Britain.
- Shipments to/from Britain with origin/destination in the EU would need to undergo full customs entry procedures and would no longer be permitted to freely circulate in between (that is to move between Britain and the EU without undergoing customs entry).
- Would add to the time needed to deliver the shipments since they will need to clear customs at either end.
- Customs/taxes would need to be paid on entry to either Britain or the EU.
- Shipments to/from the remainder of the EU would no longer be permitted under EORI numbers issued in Great Britain (numbers starting with “GB”).
- You can create/increase the safety stock of goods that you may need in either Britain or a country in the EU – we can arrange storage with agents in either case.
- You can register for a non-resident EORI number in one of the other remaining EU countries to have when shipping to/from any EU country – this registration is required by the EU. We can point you in the direction of an EU country’s customs/EORI website for further information.
- You can investigate setting up entities in either Britain or an EU country as needed.
- Start planning now for a hard BREXIT.
Please Contact Us as soon as possible if you have any questions. Thank you.