With the UK entering a transition period at the end of January 2020, UK / EU trade will continue until the end of the year with no customs checks or changes to documentation.
What happens after this transition period is not yet decided, but it seems certain that there will be customs controls.
Q: Will my company be affected by Brexit?
If your company is involved with the trading or movement of goods between the UK and EU countries or vice versa, your company will be affected by Brexit.
- Business transactions between the UK and EU countries are currently seen as intra-community traffic and are not therefore subject to customs import processes and duty payments. Brexit will change this, meaning products have to be included in customs declarations, posing a potential liability to pay duty.
- Companies outside the EU doing business with UK companies might be affected as existing trade agreements will cease if/when the UK leaves the EU Customs Union. Trade after that will be subject to any new trade agreements the UK negotiates.
Q: What do we need to do to prepare for Brexit?
We fully expect that customs controls will be introduced between the EU and the UK when the transition period ends - currently expected to be on 31 December 2020.
We will update these pages with information as and when it becomes available. But some things are fairly certain.
We expect that you will have to register with customs authorities and obtain an EORI (Economic Operators Registration and Identification) number. As your products will be subject to customs regulations, DSV will need you to provide us a list of legally required information; your DSV contact can tell you what this information is in your case. If you are affected you will need to ensure that you are up to date with the latest status and understand exactly what steps need to be taken or changed in your current operation and supply chain and what this means for risk and cost.
Q: How can DSV help us prepare for Brexit?
We will provide information as it becomes available.
Q: Who do we contact about Brexit in DSV?
You should first contact your normal point of contact in DSV. They have direct access to relevant Brexit information and can reach out to the local DSV Brexit leaders or customs experts.
If you do not know who your normal contact is please use our Global Office Finder to contact your nearest office.
Q. Will Brexit increase the cost of our supply chain?
Almost certainly, because we expect that all shipments will also require customs documentation on departure and arrival, for which you may require a customs broker.
Q: Will Brexit result in delays to our supply chain?
That was the general expectation in the event of a "hard Brexit". But what we are looking at now is a possible "hard end to the transition period" if no free trade or similar agreement is made by the end of 2020. The worst case will be that this is equivalent to what a "hard Brexit" would have been. Apart from the potential for port congestion, the logistics will change from an operation which is similar to domestic trucking to one where a hard customs border may exist between the EU & the UK, requiring cargo to be customs cleared before removal from the departure and arrival ports. This will almost certainly impact overall supply chain speed and reliability.
Q: What is DSV doing to help its customers?
At DSV, we are constantly following the political developments in the UK. In 2018 and 2019 we established a Brexit Task Force consisting of senior management and specialists from all relevant departments and countries.
The plans we made and tests we ran were fortunately not needed as there was no "hard Brexit". We have now stood down our task force but continue to monitor the situation at senior level and are ready to re-activate our teams and plans at very short notice.
Q: How can I stay updated?
Please make sure you are subscribed to newsletters sent out by your local DSV office, which you can find in our Global Office Finder.
Our customs experts are ready to help. Get in touch and we'll find the right solution for your needs.