The BBC is reporting today (2 October 2020) that UK businesses exporting good to European markets may need to set up a presence in the EU.
Both EU and UK law will require companies to “have a door to knock on” if there are any disputes over payment and compliance after 1 January according to trade consultants Blick Rothenberg.
Apportioning and managing trade risk
EU companies do not want to assume the burden of additional risk and cost by being responsible for compliance with customs new procedures. EU importers of UK goods want the products delivered to their warehouse door, with the UK exporter taking that responsibility.
Another option is to use a third party agent, but with such uncertainty over future arrangement, the agents’ costs are expected to be prohibitive. Hence a solution being mooted whereby UK exporters set up a registered office in the EU with the staff and technical resources necessary to file the relevant paperwork and keep records.
There’s little official guidance and even less time to make a decision. Exporters of goods to the EU would do well to read the article in full here. The exporting teams at both Hampshire and Surrey Chambers of Commerce may be good contact points to progress the points raised.
