After forty years of membership, the United Kingdom untangled itself from the European Union, standing its ground in the world again. While some UK importers thought of it as a wrong turn, Brexit presented exciting opportunities for global trade.
One of the most significant opportunities is leveraging the EU rules that favoured cross-border trade while adjusting the unfavourable ones. It was also an opportunity to support new industries, expanding their global footage.
No longer tied to the EU regulations, importers of record, customs brokers and UK importers can now import into the UK with lesser restrictions and more favourable policies. But how can importers make the most of Brexit when importing into the UK?
This article discusses the opportunities presented by the UK’s untangling from the EU. You will learn how UK businesses have benefited from Brexit and the various opportunities available for UK importers and IORs.
Why is Brexit Good for UK Businesses?
Brexit opened the room for new import processes, policies, and considerations, creating a better cross-border trading environment. If you are looking forward to establish your global presence in the UK, here are seven ways your business can benefit:
1. Quality Over Quantity
With the end of free movement came UK’s control over its borders. The control gave a head start for new and competitive talents to grow, while filtering through massive competition.
Competitive start-ups now stand a better chance to trade with the UK.
2. Cross-border Safety
With the free movement of goods, it was easier for EU criminals to enter the UK market. That is no longer the case with Brexit as the UK has developed new rules to refuse EU criminals entry into the UK, creating a safer trading environment.
Also, initially, EU nationals travelling to the UK would verify their identity with ID cards, an insecure mode of verification.
Instead, corresponding national passports are required at the borders, which has significantly reduced fraudulent ID cards, creating a safer trading environment.
3. Tariff-free Trade Expansion
The UK’s new Global Tariff best suits the economic needs of its businesses. The new tariff achieved the following benefits:
- Eliminated tariffs on a significant range of products
- Simplified around 6000 tariff lines
- Eliminated countless unnecessary tariff variations
- Reduced administrative burdens for businesses
4. Reduced Cost of Trade
In an effort to make the UK border the most effective in the world, the government committed £180 million to set up a Single Trade Window. This would streamline UK’s border agencies interactions, simplifying Importer of Record supply chain processes.
5. Personalised Regulation
The UK is now free to develop bespoke regulations that favour the economic interests of UK businesses. The UK regulations support business growth and innovation and eliminate business barriers such as unfair competition.
For instance, using its sanctions regimes, the UK can now decide where and when to impose sanctions, retaining its values while combating state threats.
Besides, the government developed a Trade Remedies Authorities to help investigate unethical business practices and eliminate unperceived surges in imports. Hence, foreign investors can count on the UK’s support for innovative business relations.
6. Supply Chain Management Resilience
Undoubtedly, the many changes made throughout the UK’s supply chain were disruptive as importers tried to cope with them.
But as Julian Jessop, a fellow at the Institute of Economic Affairs, put it, these changes have built UK businesses’ resilience, reducing vulnerability to international shocks.
Hence, importers of record must conduct due diligence thoroughly, factoring in any possible changes in the supply chain when importing.
7. Innumerable Trading Opportunities
The UK is no longer bound to EU trade restrictions and regulations. Following its exit from the EU, it has created various trade partnerships with non-EU members, attracting more foreign investors.
For instance, it has signed over 70 trade agreements, including the Japan and Australia agreements, post Brexit. Hence, if your country was initially limited in importing to the UK, you can now consider launching your import business.
Grabbing the Opportunity
We have discussed the various opportunities available for importers post-Brexit. But how can you make the most of it as an importer?
Here are the three ways you can take advantage of the opportunity:
1. Pull Out All the Stops
One of the UK’s independent strategies is to grow it into a technological hub, where trade burdens are systematically solved via technology. The government is also paving ways to partner with innovative businesses for its growth.
This is an opportunity for technology equipment manufacturers to dive in and give it a try. Whether a start-up or an enterprise business, this could be the opportunity your business has been waiting for.
You can start by working with an importer of record based in the UK, well-versed with the fast-changing policies and customs procedures. By doing so, you evade unnecessary costs as you gain the cross-border experience for future imports.
2. Crack the Importation Code
The most challenging codes to crack in international trade are supply chain management, customs procedures, and regulatory compliance. Let’s handle each independently.
- Supply chain management: You need systems to track your shipment from source to destination.
If you want to save on the technological costs, you can work with an established importer of record to help track and coordinate the importation processes.
- Customs procedures: You must beware of the customs requirements and clearance procedures before initiating a transaction to avoid back and forth.
If you are yet to establish your entity in the UK, you can collaborate with an importer of record in the UK for entity representation and customs clearance.
- Compliance management: What if a change in policy requires you to present your importation records three years later? Would you be able to retrieve the records?
To ensure you remain compliant, you can consider an importer of record who can keep your records for the minimum required period.
3. Acquire the services of an IOR
What if you are unwilling to be the importer of record or your import profit margins are discouraging?
Oftentimes, importers miss out on the significance of their importation business when they can’t see the profits. And who wants to be in an unprofitable business? What slashes your margins could be a decision away:
- Avoid fines and penalties: Ensure compliance and accurate classification of your shipment. This ensures timely clearance and delivery of your goods.
- Make the most of free trade agreements and VAT: Check if there are any free trade agreements applicable and tax reliefs. It saves you a lot.
- Manage your licence and certifications: Licences expire. Even equipment sometimes needs maintenance. Ensure you track the status of your products and licences for continued compliance.
An established IOR can manage all these processes, ensuring you meet and exceed your profit margins.
Over to You
As you may have observed, technology, experience, and expertise remain invaluable when importing into the UK, before and after Brexit. Furthermore, technology is one of the trends and innovations of importers of record.
While there are countless opportunities for your importation business, it can be challenging to get it right if you are new to international trade.
Hence, working with an expert importer of record can help you ensure compliance, and optimise your profits. Besides, there are innumerable reasons as to why you may need the services of an IOR.
Here at Blackthorne, we handle all the supply chain processes, saving you the time and cost of acquiring independent service providers.
We have also set up systems to monitor and track the status of your goods in transit, optimise routes, and ensure timely delivery. You can hop into a chat with us and let us know your importation challenge.
