Customs & Trade
Identifying the implications of an increase in tariffs is important in preparing for Brexit and the challenges it may pose to your products. The UK has announced its new tariff system which will apply at the end of the transition period to all countries, including Ireland, with which it has no free trade agreement. Known as the UK Global Tariff, it will be applicable from Jan 1st 2021. If a trade deal between the UK and EU is reached before this date the aim would be to avoid the imposition of all or most of the tariffs.
The potential impact of Brexit across the business will see increased pressure on margins. Companies can look to innovate, increase effectiveness and cuts costs out of their production process as a means to maintain or even increase profitability. This is one of the measures a business can take to plan against the negative impacts of Brexit but makes perfect business sense irrespective of Brexit.
Our current trading relationships with the UK has been governed by a vast number of contacts negotiated with suppliers, local employees, agents and customers. Any change in the trading arrangement could have an associated impact on the contracts that underpin it. Companies with UK contractual arrangements can start to manage their risks by reviewing their existing contracts and start to consider future contracts in light of what legal changes Brexit may bring.
The UK remains one of our largest trading partners. For years, Ireland has been both exporting and importing products and services from and to the UK and our supply chains have been built up around this trading history. The impact of Brexit has the potential of adding substantial disruptions to supply routes through tariffs, non-tariff barriers, custom delays and the additional costs of customs procedures. Companies can respond by analysing their suppliers to understand each supplier’s relative importance, how these products arrive into Ireland, where they come from and what borders they cross. Learn more.