Preparing your business for BREXIT
With less than 100 days to go, is your business ready for BREXIT? How will BREXIT impact your supply chain and what can you do now to reduce disruption and delays and keep your business competitive?
There are a number of processes to do now, some are outlined on the Brexit Checklist here.
Picking one item on the Checklist to expand on – Incoterms. If you are currently exporting on DDP Terms to the UK you are responsible for clearing the goods for import in the UK. This includes paying any import taxes and duties. We would suggest you change your Incoterms to DAP, allowing you to keep control of the freight costs. This will ensure your customer in the UK pays the required taxes and duties upon import to the UK, reducing your costs and complexities.
Following this point, if you have UK imports on EX Works Terms there is no obligation on your supplier to clear the goods for export in the UK. We suggest you contact your UK suppliers and confirm they are willing and able to complete the customs export formalities in the UK. If they are happy to do this, we suggest keeping your Incoterms EXW. If not, it would be advisable to change your Terms to FCA (or any other term that places the onus on the supplier to complete the export declaration).
formalities may be new to you but Rhenus have been handling Customs Clearance for years through our global freight services. Established over 100 years ago and over 33,000 logistics experts in 750 sites worldwide Rhenus Logistics has the answers, meaning you can be confident we’ll keep your supply-chain moving and provide you with the Customs expertise your business needs post-Brexit
For more information please do not hesitate to contact us: