SUBMISSION SUCCESSFUL

The United Kingdom will leave the European Union on January 31, 2020. The UK will remain a member of the EU’s Single Market and Customs Union until the end of the year, according to the regulations of the transition period, and the flow of products and services between the UK and the EU continues to this day. Things will change on January 1, 2021.

The Situation Until December 31, 2020: Single Market and Customs Union

Since January 1, 1973, the United Kingdom has been a member of the European Union, and it has been a part of the EU’s Single Market since its inception in 1993. This means that there are no tariffs, quotas, or levies on transactions between the United Kingdom and other European Union member countries. It allowed for the free movement of products, capital, and people.

Furthermore, the European Union operates as a customs union, with its member countries agreeing to apply the same tariffs and general entrance conditions from foreign markets. This allowed for more sophisticated, efficient supply chains to connect South East Asia to the United Kingdom via European centers like Rotterdam, where commodities were cleared for import before being sent to their final British destination.

Such models will need to be re-evaluated in the near future and maybe replaced by new ones that will accommodate the new trade agreements that will be implemented.

Brexit Preparation: Five Best Practices to Implement Right Away

Because of the increased complexity of export and import clearances, it is recommended that enterprises of all sizes and industries utilize intermediaries, such as a customs agent or a forwarder, to file their customs declarations.

While filing your statements through these professional hands and appropriate IT systems is most likely the wisest course of action, this does not mean that Brexit will not cause other significant changes to your supply chain. Here are some crucial aspects to think about if you want to get a jump start on 2021.