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With Brexit now implemented and Free Trade between the United Kingdom (UK) and European Union (EU) a thing of the past, many companies have had to restructure how they do business. Pre-Brexit statistics reveal approximately 48% of shipments out of the UK are headed to the EU, while 54% of those arriving in the UK originated from the EU. Despite this prevalence of trade between the EU and the UK, all the recent changes in legislation are making these kinds of transactions increasingly difficult. The ever-growing climate of confusion and frustration is clear.
EU companies must now navigate a complex UK import system, and those UK companies exporting to the EU are now required to obtain export licenses. While the UK appears to be maintaining its position as the technological heart of Europe, many smaller companies have struggled to navigate the complexities of the import and export process to their European and global clients. A significant number of the companies affected have turned to TecEx to act on their behalf, finding great value in our Exporter of Record (EOR), Importer of Record (IOR), and compliance services. So much so that they abandoned their plans to register EU entities and use TecEx as a permanent solution.
As new trade legislation becomes common practice, companies are now required to obtain lists of licenses and permits for even the simplest of shipments. These licenses are extremely hard to come by and require extensive legal counsel to obtain. Certain licenses also have long lead times, such as the Single Individual Export License (SIEL), which can take around 4-6 weeks in approval time. This is just one of many compliance requirements that those wanting to export out of the UK are required to obtain for every shipment – that is, of course, assuming they have a UK-registered entity. Even with a UK-registered entity, exporting goods requires extensive due diligence around the goods and destinations. This includes detailed records of the shipment which require annual submission and need to be kept for auditing purposes. To help alleviate some of the issues, TecEx has successfully navigated thousands of complex shipments both into and out of the UK.
Now enter Brexit – and with it, the end of Free Trade between the EU and the UK. This has had far-reaching consequences, such as:
- Companies registered in the EU with export operations out of the UK are no longer able to act as an exporter from the UK and;
- Previously simple transactions between the UK and EU, which may have required some declarations, are now a major ordeal.
To help alleviate some of the issues, TecEx has successfully navigated thousands of complex shipments both into and out of the UK. Shipping with TecEx enables access to its established licenses, including the Open Individual Export License (OIEL). This can drastically shorten lead times and mitigate risk. TecEx also provides a full Delivered Duty Paid (DDP) service covering both EOR and IOR while sourcing all compliance to ensure first-time customs clearance. These new trade rules have also added complexity to the process of calculating taxes and duties. Accurately calculating these taxes and duties takes years of experience, requiring accurate identification of HS codes and expert knowledge of trade relations between origin and destination countries. A miscalculation in this department can be catastrophic in terms of cost.
The TecEx Brexit Solution
With the ability to act as both IOR and EOR in the UK and EU, TecEx is an effective partner for those struggling to navigate the maze of post-Brexit trade. One of the major benefits that TecEx offers is our OIEL, an open export license that allows us to act as the exporter out of the UK. This license means our clients do not have to apply for a SIEL, drastically cutting lead time for shipments by weeks.