Some facts first:
- Even if the European Union and the United Kingdom were to conclude, by the end of 2020, an ambitious partnership covering all areas agreed in the Political Declaration such an agreement would create a relationship which will be very different from the United Kingdom’s participation in the EU Single Market and Customs Union, and in the VAT and excise duty area.
- Inevitable disruptions will occur as of 1 January 2021 and risk compounding the pressure that businesses are already under due to the COVID-19 outbreak.
- There is no room for complacency or postponing readiness and adaptation measures in anticipation that an agreement would ensure continuity, because a large number of changes will be inevitable.
- These controls are likely to lead to increased administrative burdens for businesses and longer delivery times in logistical supply chains. As of 1 January 2021, EU businesses wishing to import from or export to the United Kingdom will need to ensure they have an Economic Operators Registration and Identification (EORI) in order to go through customs formalities. In addition, EORI numbers issued by the United Kingdom will no longer be valid in the Union. Businesses based in the United Kingdom wishing to import into the Union will need to receive an EU EORI number, or appoint a Union customs representative where applicable.
- Businesses must acquaint themselves with the formalities and procedures for doing business with the United Kingdom as a third country as of 1 January 2021. They should also factor in the increased administrative obligations and potentially longer timeframes resulting from these formalities and procedures. This might entail significant changes to the organisation of existing supply chains. Businesses are responsible for assessing the actions needed in view of these changes, in light of their individual situation.
- Goods not meeting origin requirements will be liable to customs duties even if a zero-tariff, zero-quota EU-UK trade agreement is put in place. Trade between the EU and its preferential partners will also be affected, as UK content (in terms of both material and processing operations) will become ‘non-originating’ under Union preferential trade arrangements for the determination of the preferential origin of the goods that incorporate such UK content.
- Furthermore, Value Added Tax (VAT) will be due upon importation of goods brought into the VAT territory of the European Union from the United Kingdom, at the rate that applies to supplies of the same goods within the Union.
Unprepared businesses, potential long delays because of incorrect documentation, loss of revenue, out of date produce.
The EU TradePortal was set up to help with import and export processes for UK businesses as well as their EU trading partners. Our systems are designed as a "one-stop-shop", automatically filling in appropriate forms ready for the haulier and custom authorities on both sides of the channel. A complete explanation can be found here: https://eutradeportal.com/european-portals-launches-online-trade-portal/ . In short, by using the Portal, businesses can be assured that all paperwork, required registrations or other necessary documents are completed correctly and ready to go so that trading can continue seamlessly from the beginning to the end user.
https://www.dropbox.com/s/gww5o29kl20wcgw/internationaltradeinservices2018.xlsx?dl=0 shows in detail REAL export numbers and why it is vital that there are minimum delays at borders. To summarize, our customers are in their 100,000+, on both sides of the Channel.
How do we use funds and what is the financial plan:
The majority of funds (including founder funds - €85k ) will be used to ensure a safe IT foundation. As we have a "best of best" policy, we opt for specialists and not for trainees. We do understand that our work is mission-critical, thousands of businesses will depend on it.
Please have a look at our pricing policy and fee structure at: https://eutradeportal.com - it doesn't take much to work out profit margins. Even at a 1% take up, the portal will generate in excess of 2 Mill t/o per year.