Urgent need for companies to prepare for new trading scenarios

The British Irish Chamber of Commerce was founded in 2011 ahead of the historic visit of Queen Elizabeth II to Ireland and the subsequent State visit of President Michael D Higgins to Britain.

The objective of the Chamber is to champion the €80bn annual trade between the UK and Ireland. Skilful networking helps its members to find new suppliers and markets, and the Chamber plays a vital role in maintaining focus on the value of two-way trade between UK and Ireland.

Paul Lynam, director of policy at the Chamber, is urging every company, business, and enterprise in Ireland to make sure they are prepared for what lies ahead in not much more than a fortnight.

What is his best advice?

“We are calling on all members to get Brexit-ready now,” says Mr Lynam. “While it is not yet certain whether the EU and the UK will agree a free trade agreement, it is evident that any such agreement will be limited in its scope and range. From January 2021, the UK will be classified as a ‘third country’ vis a vis the EU’s union customs code (UCC). Therefore, normal ‘third country’ applications will apply with the required customs declarations and administrative procedures.”

That all businesses need to be Brexit-ready, whatever way the talks go, is what he is stressing, and what many smaller businesses perhaps do not yet realise.

“Even if a last-minute deal is struck, you still have to get your official preparations made because you will be dealing with a separate country outside the EU. On top of that, if no deal is agreed, then tariffs, additional charges, etc come into force. But everything else you can prepare for now, and you should.”

EORI Number

The British Irish Chamber therefore, is urging all its members to make sure that they have their economic operators registration and identification (EORI) number. This is a common reference number for interactions with customs authorities in EU states and is valid throughout the EU. If you are trading with a non EU country, you have to have this.

If you haven’t got yours yet, you can get it through the Revenue’s online services section.

Import and export declarations

The second thing you need to think about is import or export declarations which are fairly demanding and lengthy. Bigger companies will probably be planning to do this in house, but smaller ones might want to consider using a customs agent. You can find plenty of options online. If you haven’t done anything yet, then, says Mr Lynam, you should probably at this stage be looking at a customs agent to help. The UK, he points out, is introducing simplified procedures, which you can find out about via the British Embassy or online here.

Are your UK suppliers prepared?

The third thing, particularly important for those who depend on supplies from the UK, is to make sure your providers there are properly prepared too. “Even if you have planned well ahead, and are sick and tired of it by now, doesn’t mean that everybody on your supply chain is at the same level,” warns Paul Lynam. “Contact them right away, and ask for a copy of their customs plan. Don’t let them put you off, or tell you they are waiting on the results of the EU-UK deal. You need their plans to be sure that they are as ready as we are.”

Transfer of data

Anything more? Yes. The transfer of important information needs to be considered. Countries in the EU have very high standards of data protection, particularly under the provisions of the General Data Protection Regulation (GDPR). EU-based data controllers (those who decide how and why personal data are processed) are not permitted to transfer personal data outside the EU/EEA unless those standards are maintained. Brexit, particularly in the context of a ‘No Deal’ scenario, may have a serious impact on the data protection obligations of Irish controllers which transfer personal data to the UK (including Northern Ireland); because, in a situation where the UK becomes a ‘third country’, transfers to the UK will be considered transfers outside of the EU/EEA and will require a mechanism to ensure an adequate level of data protection. HR facilities, payroll services, pension schemes and more could well be affected by this. www.dataprotection.ie will give you the information you need to prepare for this.

Do you qualify for a grant?

If comfort is required (and it probably is), it would appear that we in Ireland are fairly well ahead in preparing for the momentous changes coming on Jan 1, 2021. The financial sector, for example, has been working very hard to ensure its readiness. But it behoves every business, however small, to make sure it is as well prepared as possible. “To their credit, the Government has provided numerous supports through their agencies that can assist firms in this process,” points out Paul Lynam. “However, the take-up has been only a third of what it could be, so far. Look into it, and see if you are entitled to a grant or a loan.” https://www.gov.ie/en/publication/b1efec-programmes-funds-and-supports/ has all the details.

Don’t wait, act now!

The over-riding message from the British Irish Chamber of Commerce is: don’t wait, act now.

“The annual trade between the UK and Ireland is now over €80 billion, and supports over 400,000 jobs,” says Lynam. “We have to protect and maintain that as much as possible, and being ready for the upcoming changes is more than half the battle.” Numerous factors, including of course Covid as well as bureaucracy, will inevitably slow things down, he admits, but if the virus is sorted and customs deals worked out, he would expect the trade to grow. “Not as quickly as it would have if the UK had stayed in the EU, but depending on how well Irish businesses are prepared, we should do well.”

So: Are you prepared?

Deal or no deal, Brexit is going to affect companies in the UK and Ireland, as well as across the EU. If you really want to be ahead of the game, why not join the British Irish Chamber and gain access to a network of service providers that can help you to do just that. Email paul.lynam@britishirishchamber.com or log on to www.brexitproofme.com/ to find all you need to know.