We recently teamed up with Morning Ireland and then RTE to publish our research findings surrounding Brexit. The research was conducted nationwide on Irish SMEs by the independent research company Behaviours & Attitudes.
Findings demonstrated that about half of businesses that trade with the UK stated that they were struggling to grasp the new customs requirements coming into place on 1st January.
The main reason cited for the lack of preparation is that no trade agreement has been reached by the EU and the UK, with businesses revealing that this has made it harder to prepare.
Along with no trade agreement having been reached, the pandemic was also cited as being an interruption for businesses. Up to 90% of medium and large businesses cited Covid-19 as an obstacle to their post-Brexit trade preparations.
Carol Lynch, partner at BDO Customs & International Trade has highlighted that businesses may be relying too heavily on the hope that a trade agreement will solve their customs problems. Ms. Lynch explained “Even if and when a trade agreement is concluded, there will still be a requirement for import and export declarations. The agreement only means that customs duties may not be payable.”
Based on this, Ms Lynch also outlined what steps businesses need to take now. “You’ve a short timeframe at this point. You really need to prioritise. The first thing you need is to get customs registration, which is called an EORI number. You need to request that from Revenue but you can’t import or export without that.” “The next most important thing is find out how you’re going to lodge your customs declarations. It’s quite an in-depth process. It’s tax declaration at the end of the day so it needs to be 100% accurate.”
Michael Nolan, CEO of Declaron, added to this “I know that businesses are concerned about whether there will be a trade agreement in place but that should not stop preparation for the one guaranteed task they will have to deal with and that is creating and submitting Customs Declarations”.
“There are certain steps that every business must now take to be able to import and export with effect from 1 January and inaction now puts the efficiency of their trading with the UK at risk,” he added.
The full article is available here – https://www.rte.ie/news/business/2020/1106/1176302-firms-unprepared-and-struggling-with-customs-changes/
We can help you in this preparation, click below to learn how.