What Has Brexit Brought to the UK? And What Challenges Do Producers and Exporters Face When Selling to the EU?
By René Gouw, CEO of Kolibri Logistiek
Brexit has been a reality for a while now, and we can say that the consequences have been both surprising and inevitable. The United Kingdom (UK) has officially separated from the European Union, and as expected, this has had a major impact on everything related to trade, logistics, and the supply chain. But what has Brexit really brought to the UK? And for producers and exporters still aiming to sell their products in the EU, what can they expect from this new reality?
What Has Brexit Brought to the UK?
There was a lot of talk about the benefits of Brexit, from gaining more sovereignty to having the ability to negotiate its own trade agreements. In practice, however, the UK has faced a number of challenges it perhaps didn’t anticipate. Yes, it now has the freedom to set its own trade policies, but this comes with a price: increased bureaucracy, border checks, and more complex regulations.
The positives?
- Independent trade deals: The UK now has the freedom to negotiate trade agreements with countries outside the EU, opening up new markets. Recent trade deals with Australia and Japan are prime examples of these new opportunities.
- Better control over regulations: The UK can set its own rules without having to align with EU standards. This has some benefits for specific sectors, such as the ability to fast-track new product approvals.
The downsides?
- Complex customs procedures: Trading with the EU has become considerably more complicated. Customs checks, import duties, and additional paperwork make exporting to the EU more time-consuming and costly than before.
- Loss of access to the internal market: The EU is one of the largest markets in the world. Without access to the internal market, UK businesses now face more competition and less ease in accessing European consumers. This has especially affected smaller businesses that rely on the EU market.
E-commerce Brexit update
Challenges for Producers and Exporters in the EU
Now that the formal separation is a reality, producers and exporters in the UK must adapt to the new post-Brexit world. What can they expect? And how can they overcome the new challenges?
- Customs formalities and extra costs
Exporters to the EU now need to deal with new customs rules. This means additional paperwork, import duties, and potential delays at the border. Proper preparation is essential. Make sure all the necessary documents, such as import declarations and invoices, are in order. Tip: Partner with a reliable logistics provider that has experience with post-Brexit customs procedures. - Loss of the ‘preferential origin’ scheme
Products coming from the UK no longer automatically benefit from duty-free access to the European internal market. The so-called ‘preferential origin’ scheme is gone, meaning exporters now need to comply with origin rules and provide the correct certificates. Advice: Make sure you understand what this means for your product and work with an expert to obtain the right certificates. - Loss of access to EU market facilities
One of the benefits of being an EU member was the free movement of goods, meaning British products could be easily sold throughout the EU. Now that the UK is no longer part of the EU, UK producers face additional barriers and higher costs to sell their products in the EU. What can businesses do? Consider setting up warehouses or distribution centers within the EU to minimize import costs.
How Can You Prepare for the Post-Brexit Reality?
- Plan ahead – and be prepared for delays
Make sure you have sufficient stock, especially in the first few months after the Brexit transition period ends. Delays are inevitable, especially if you’re not well-prepared. This applies to both the supply chain and the paperwork and customs formalities. - Invest in technology
Use technology to streamline your processes and minimize errors. There are plenty of software solutions that can help keep track of your documents and ensure the correct information is submitted for customs entry and exit. - Partner with a reliable logistics provider
A solid logistics partner can help guide you through the maze of customs and export regulations. They’ll not only assist with the paperwork but also help you find the fastest and most cost-effective routes to the EU. Think about our own experience at Kolibri Logistiek, where we help our customers navigate these complex processes.
Conclusion: What Now?
Brexit has allowed the UK to take more control over its own laws and regulations, but it has also introduced many new challenges for exporters and producers. If you want to keep selling in the EU, it’s essential to understand the new rules and adapt your business operations to the new reality. Proper preparation, investments in technology, and working with a reliable logistics partner will be key to success in this post-Brexit world.
And remember, the only constant in life (besides taxes) is change. So, if you think Brexit is the biggest challenge you’ll ever face, buckle up: the best is yet to come. Or not, if you follow politics…
Kolibri Logistiek is at play in the field of logistics. And we play at Champions League level! We cover your supply chain from collecting your products at location of production up to the last mile to your customers. Request a quote!
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