The phrase “Brexit is done” may have dominated headlines in recent years, but the reality for businesses tells a different story. Ongoing adjustments to UK-EU trade agreements, tariffs, and cross-border certifications continue to reshape the landscape for companies trading internationally. As we move through another year of post-Brexit developments, it’s essential to stay ahead of the changes that could impact your business.
UK-EU Trade Agreements and Tariffs: What’s New?
The UK and EU may have reached a Trade and Cooperation Agreement (TCA) in 2020, but it remains a dynamic framework subject to ongoing negotiations and updates. Key developments this year include:
- Rules of Origin Requirements: Many businesses have faced challenges meeting the rules of origin requirements to qualify for tariff-free trade. Recent updates mean stricter checks on the percentage of UK or EU content in goods. Businesses must ensure their supply chains align with these requirements or risk tariffs and delays.
- Evolving Sector-Specific Agreements: Industries such as agriculture, automotive, and chemicals have seen sector-specific changes. For instance, additional quotas and revised tariff schedules have been introduced for certain agricultural products. Similarly, the UK’s decision to diverge from EU regulations on chemicals under the UK REACH system adds another layer of complexity.
- Tariff Reliefs and Extensions: Temporary tariff reliefs on certain goods, such as medical supplies, have been extended to address supply chain pressures. However, these measures are subject to regular review and could change, affecting cost calculations for businesses.
New Certifications for Cross-Border Businesses
Compliance has become a critical focus for businesses involved in UK-EU trade, with new certifications emerging as non-negotiable for seamless operations. Key certifications to consider include:
- UKCA Mark: Since the UK’s departure from the EU, the UKCA (UK Conformity Assessed) mark has replaced the EU’s CE mark for most goods sold in Great Britain. Businesses must ensure their products meet UKCA requirements by the extended deadline, currently set for December 2025, to avoid disruption.
- EU CE Mark for Northern Ireland: Goods sold in Northern Ireland still require the EU CE mark under the Northern Ireland Protocol. Businesses trading across Great Britain, Northern Ireland, and the EU must navigate dual certification requirements.
- SPS Certification for Agricultural Products: For businesses trading in plants, animals, and food products, Sanitary and Phytosanitary (SPS) certifications remain a significant hurdle. The increased frequency of checks and documentation can lead to delays, making it crucial to plan and budget accordingly.
Tips for Navigating Supply Chain Disruptions
Supply chain disruptions have become a hallmark of the post-Brexit business environment. To mitigate risks and maintain operations, consider these practical strategies:
- Diversify Your Suppliers: Relying on a single supplier or region can leave your business vulnerable to disruptions. Explore alternative suppliers in non-EU countries or within the UK to reduce dependency and increase resilience.
- Invest in Technology: Digital tools like supply chain management software can provide real-time insights, helping you identify bottlenecks and streamline logistics. Technology can also aid in ensuring compliance with evolving trade regulations.
- Build Strategic Stockpiles: Where possible, stockpiling critical components or finished goods can buffer against delays at borders. Ensure you have adequate storage facilities and manage inventory turnover to avoid spoilage or obsolescence.
- Engage with Customs Brokers: Customs documentation remains one of the most time-consuming aspects of UK-EU trade. Partnering with experienced customs brokers can help ensure paperwork is accurate and submitted promptly, reducing the risk of delays.
- Review Contracts and Incoterms: Post-Brexit trade agreements often come with revised terms and conditions. Review your contracts and Incoterms to clarify responsibilities, risks, and costs associated with shipping and customs
Preparing for the Future
As the UK continues to redefine its trade relationship with the EU and the rest of the world, adaptability is key for businesses. By staying informed of regulatory changes, investing in compliance, and proactively managing supply chains, businesses can turn potential challenges into opportunities for growth. Brexit isn’t done but with preparation and strategic planning, your business can remain competitive in this evolving trade environment.
Published: 19th February 2025
