From 1 January 2021, the UK will no longer be in the Single Market or Customs Union which means how Irish firms trade with them will be starkly different.
Even if a Free Trade Agreement is concluded between the EU and UK, there will be significant and enduring change, the Tánaiste has pointed out.
Enormous change
Businesses will experience enormous change in customs with declarations needed for continued trade in importing or exporting goods to the UK or using that country as a landbridge to move goods to or from mainland Europe.
“I ask all businesses regardless of their size, small, medium or large to focus on their Brexit readiness as things will simply not be the same. Being prepared for customs formalities is critical and the Government is here to help.” the Tánaiste added.
A grant is available of up to €9,000 per employee taken on or redeployed, to enable businesses build their capacity to manage any customs changes.
Practical customs training is also available through Enterprise Ireland, Local Enterprise Offices and Skillnet Ireland.
Vulnerabilities
Minister of State for Business, Employment and Retail Damien English said that businesses buying or selling into the UK should look at their supply chain and determine if there are any vulnerabilities due to Brexit.
“Get in touch with your suppliers, service providers and logistic companies, or wholesalers and distributors, to seek assurances on the continuity of supply.
“Consider seeking alternative suppliers either in the domestic market or further afield if you have concerns about the continued supply of products or goods”, Minister English said.
Businesses need to ensure they have adequate cashflow, with currency fluctuations, tariffs or potential delays all up ahead.
Headroom
Minister of State with responsibility for Trade Promotion Robert Troy said there are Government financial supports available to help create working capital headroom.
“There are a number of ways your cashflow could be impacted because of Brexit, for example, you may have to pay tariffs on products. It is important that businesses give themselves enough breathing space.
“Supports such as the Brexit Loan Scheme and the recently launched €2 billion Credit Guarantee Scheme are available”, Minister Troy said.
There will also be new regulatory requirements for businesses who have relied on the UK up to this point.
From the beginning of January, the UK will be considered a ‘third country’ and, therefore, businesses cannot use UK notified bodies for, for example, product certification purposes. They must use a notified body within the EU.
Certificiations
The Tánaiste concluded: “Businesses need to be sure their certifications and standards are EU compliant from 1 January next year.
“While this may not affect every business, it is really important for some.
“I am sure we have all noticed the CE certification mark on various products which means they meet particular standards set out in EU law.
“These are assessed by notified bodies and you must ensure that a notified body within the EU is used. So, if you have depended on a UK notified body, you must change over to one in the EU”.