Brexit: outsource your logistics throughout Europe

The recent Brexit discussions lead to a lot of uncertainties for UK based companies. What about doing business with non-UK countries? What about regulatory, tax and VAT aspects of business between the UK, the EU and other parts of the world? How can you arrange your imports and exports without too much trouble and comprehensive risks?

How can you arrange your imports and exports without too much trouble and comprehensive risks?

We can image all possible scenarios for Brexit result in questions about your daily business. They all have impact on importing goods and sending your products to your customers based in European countries (see the five possible scenarios below).  Whatever the outcome of Brexit negotiations, it is wise to start planning your ongoing business now. Ensure you remain competitive in the changing market. In all cases, you can consider outsourcing your transport and logistics to a specialized partner in The Netherlands.

What can you do to ensure continuation of your business?

Normally, business planning is based on hard facts and detailed information. The Brexit negotiations create a different situation, which means that we need to develop plans with many unknowns, using some speculation and hypothetical scenarios. At this moment, it is unclear what the effects on transport and logistics will be. Are you waiting for the final conclusion? Or are you taking action by looking for solutions to continue working with European companies? As a logistics service provider based in The Netherlands, MOL Logistics can assist you in the continuation of your business.

Competitive advantages for your supply chain:

N

All your logistics and transport activities managed from a centrally located hub in Europe

N

Shorter lead-times for your distribution to European countries

N

Fiscal and financial advantages by using Fiscal Representation in The Netherlands

N

Professional storage of your goods, including additional services as picking, packing and quality checks (no need to keep your own warehouse)

N

Customs specialists assist you with your customs related questions and documents

N

Customer Service teams for all transport types take care of your business and keep you posted

What can happen? Five possible scenarios

The Brexit negotiations are in full swing. The negotiator on behalf of the EU, Michel Barnier, takes into account five possible scenarios for the future relationship with the United Kingdom. These scenarios are based on the deals the EU already has with other countries, such as Switzerland, Turkey and Canada.

\

Staying a member of the European Economic Area (EEA)

According to a study by the British Parliament on the impact of the scenarios, staying within the EEA is the least damaging for the British economy. This would mean that the United Kingdom would remain part of the internal market. In that case, free movement of goods, people, services and capital is still possible. The probability that the UK will remain in the EEA is quite small.
\

The Switzerland model: free trade agreement

Switzerland is not part of the EU or of the EEA. The country has a free trade agreement and more than 120 bilateral agreements with the European Union. As a result, Switzerland has access to the European market for the most part. Switzerland also has to pay less for the European budget and the country only needs to adopt legislation on production standards. There are some problems for the British government in this model. There is indeed free movement of people, which the British Prime Minister Theresa May wants to get rid of. The British government no longer wants to contribute to the European budget, so even a smaller payment will probably already pose a problem.
\

External free trade agreement

In December 2017, EU negotiator Barnier stated that a free trade agreement between the EU and the UK is the most logical step, given the views of the British Prime Minister. With such an agreement, the British no longer have access to the internal market, the customs union expires and the EU no longer has any influence on British legislation. The British therefore no longer have to contribute to the EU budget. The consequences for the border between Ireland and Northern Ireland are problematic. When there is no more customs union with the EU, a ‘hard’ border will return. This goes against the Good Friday Agreement, which ended the Northern Ireland conflict.
\

The Turkey model: a customs union

In 1995 a customs union was established between the EU and Turkey. This means that tariffs are no longer levied on mutual trade. Turkey is also subject to the same external rates as the EU in a customs union. Turkish products also have minimum conditions with regard to production standards, consumer rights and other similar regulations. The Turkey model produces few problems for the British. The only problem is that the British are less free to choose their trading partners. This is due to the use of the same external rates as the EU.
\

No Deal

This is the doom scenario for both the UK and the EU. In this case no deal is made about the future relationship, as a result of which the trade falls back on the rules of the World Trade Organization. This means that freedom of goods or services no longer applies. The contribution to the EU budget will also no longer apply and the UK will no longer have to accept European legislation. Economically, this is no fun for anyone. It is becoming more expensive for the British and the remaining EU countries to trade with each other. In addition, if no other agreement is concluded, there will be a hard line between Ireland and Northern Ireland. In addition, deals will have to be concluded to protect the rights of EU citizens in the UK and vice versa.

Sources: Nu.nl, PWC, Business Insider

Let us help you.

Bericht over Brexit: outsource your logistics throughout Europe

GDPR and Privacy

Brexit: outsource your logistics throughout Europe

The recent Brexit discussions lead to a lot of uncertainties for UK based companies. What about doing business with non-UK countries? What about regulatory, tax and VAT aspects of business between the UK, the EU and other parts of the world? How can you arrange your imports and exports without too much trouble and comprehensive risks?

How can you arrange your imports and exports without too much trouble and comprehensive risks?

We can image all possible scenarios for Brexit result in questions about your daily business. They all have impact on importing goods and sending your products to your customers based in European countries (see the five possible scenarios below).  Whatever the outcome of Brexit negotiations, it is wise to start planning your ongoing business now. Ensure you remain competitive in the changing market. In all cases, you can consider outsourcing your transport and logistics to a specialized partner in The Netherlands.

What can you do to ensure continuation of your business?

Normally, business planning is based on hard facts and detailed information. The Brexit negotiations create a different situation, which means that we need to develop plans with many unknowns, using some speculation and hypothetical scenarios. At this moment, it is unclear what the effects on transport and logistics will be. Are you waiting for the final conclusion? Or are you taking action by looking for solutions to continue working with European companies? As a logistics service provider based in The Netherlands, MOL Logistics can assist you in the continuation of your business.

Competitive advantages for your supply chain:

N

All your logistics and transport activities managed from a centrally located hub in Europe

N

Shorter lead-times for your distribution to European countries

N

Fiscal and financial advantages by using Fiscal Representation in The Netherlands

N

Professional storage of your goods, including additional services as picking, packing and quality checks (no need to keep your own warehouse)

N

Customs specialists assist you with your customs related questions and documents

N

Customer Service teams for all transport types take care of your business and keep you posted

What can happen? Five possible scenarios

The Brexit negotiations are in full swing. The negotiator on behalf of the EU, Michel Barnier, takes into account five possible scenarios for the future relationship with the United Kingdom. These scenarios are based on the deals the EU already has with other countries, such as Switzerland, Turkey and Canada.

\

Staying a member of the European Economic Area (EEA)

According to a study by the British Parliament on the impact of the scenarios, staying within the EEA is the least damaging for the British economy. This would mean that the United Kingdom would remain part of the internal market. In that case, free movement of goods, people, services and capital is still possible. The probability that the UK will remain in the EEA is quite small.
\

The Switzerland model: free trade agreement

Switzerland is not part of the EU or of the EEA. The country has a free trade agreement and more than 120 bilateral agreements with the European Union. As a result, Switzerland has access to the European market for the most part. Switzerland also has to pay less for the European budget and the country only needs to adopt legislation on production standards. There are some problems for the British government in this model. There is indeed free movement of people, which the British Prime Minister Theresa May wants to get rid of. The British government no longer wants to contribute to the European budget, so even a smaller payment will probably already pose a problem.
\

External free trade agreement

In December 2017, EU negotiator Barnier stated that a free trade agreement between the EU and the UK is the most logical step, given the views of the British Prime Minister. With such an agreement, the British no longer have access to the internal market, the customs union expires and the EU no longer has any influence on British legislation. The British therefore no longer have to contribute to the EU budget. The consequences for the border between Ireland and Northern Ireland are problematic. When there is no more customs union with the EU, a ‘hard’ border will return. This goes against the Good Friday Agreement, which ended the Northern Ireland conflict.
\

The Turkey model: a customs union

In 1995 a customs union was established between the EU and Turkey. This means that tariffs are no longer levied on mutual trade. Turkey is also subject to the same external rates as the EU in a customs union. Turkish products also have minimum conditions with regard to production standards, consumer rights and other similar regulations. The Turkey model produces few problems for the British. The only problem is that the British are less free to choose their trading partners. This is due to the use of the same external rates as the EU.
\

No Deal

This is the doom scenario for both the UK and the EU. In this case no deal is made about the future relationship, as a result of which the trade falls back on the rules of the World Trade Organization. This means that freedom of goods or services no longer applies. The contribution to the EU budget will also no longer apply and the UK will no longer have to accept European legislation. Economically, this is no fun for anyone. It is becoming more expensive for the British and the remaining EU countries to trade with each other. In addition, if no other agreement is concluded, there will be a hard line between Ireland and Northern Ireland. In addition, deals will have to be concluded to protect the rights of EU citizens in the UK and vice versa.

Sources: Nu.nl, PWC, Business Insider

Let us help you.

Bericht over Brexit: outsource your logistics throughout Europe

GDPR and Privacy