Carol Lynch, Customs and International Trade Partner, comments on economic impact of Brexit
28 May 2021
In The Irish Times’ recent article The Brexit squeeze on the Irish economy is only just starting, Carol Lynch, Partner in Customs and International Trade, reports on how companies are beginning to manage the new customs requirements.
At the start of this year, the UK departed from the single market and customs union. This economic phase of Brexit has triggered many pivotal changes for businesses, trade and consumers. While the initial uncertainty around Brexit has now subsided, the real economic impact of Brexit is yet to be seen.
Carol says that this past January and February were very challenging months for companies adjusting to new trade rules. Many traders were restructuring supply chains where necessary, taking into account the delays at ports and customs. She says, now that most businesses are becoming more familiar with the paperwork, they are focusing on longer term planning and figuring out how to efficiently manage the movement of their goods
On the subject of trade patterns changing, Carol states that some earlier problems have been resolved or mitigated. She points out that the risk of tariffs applying on goods coming from the EU, through UK supply hubs to Ireland – which famously threatened the supply of Percy Pig sweets to Marks & Spencer in the Irish market – can be avoided, but only by the careful lodging of documents to avail of an existing allowance called returned duty relief .
In some cases, such as the import of goods from the Far East to the UK and on to Ireland, there is a risk of a double hit from tariffs and in some cases companies are restructuring supply chains to avoid this.
If your business requires assistance with managing its trading requirements, visit BDO Customs and International Trade to learn more about their services or contact [email protected] to talk to a member of the team.