Tariff free and quota free sounds great, but companies are already finding that it is not as simple as that. Some are encountering significant complexity in customs clearances and border procedures and while these will add to the complexity and cost of trade in the future, we would expect these process issues to calm down over time.
More serious for the long term is the impact of the rules of origin regime. This is not something that companies can navigate their way round, or learn, as with customs processes. If the effect of rules of origin through your supply chain is that your product attracts tariffs, you will either have to pay the tariffs or change your supply chain. This is particularly the case for supply chains that cross the EU-UK border during the production process – the fact that you have sourced your components or ingredients into the UK from inside the EU does not mean that they necessarily count as EU origin when the rules are applied to their re-export back to the EU.
Join us for this webinar where we will discuss Rules of Origin, the impacts on the manufacturing sector (including food and drink and consumer product manufacturing) and what your longer-term strategy may need to involve.