British’s exit from EU will end the free movement of people, good & services and capital. However, it does not take away the trader’s tax free and limitless imports & exports, rather they shall confront new trade procedures/policies, paper works & delay in process. The exit makes way for the UK to create new trade policy and lubricate the existing policies to strengthen its international trading regime with bilateral, multilateral and free trade agreement with the developed and developing countries. For instance, there is no free trade agreement between EU and countries like US, Australia & New Zealand which shall now be a scope of development & advancement for the UK with an expected short term real income growth of 0.6%.
There is ongoing discussions between the two entities to efficiently manage the transition and is yet pending to take decision in the sectors like Banking & Service, Fishing, Travel & Education, Energy & Climate, Data & Security, Thematic Cooperation and Unions Programmes which may conclude down the line with mutual understanding and advantages. When seeing UK’s exit globally, they would lose out on collective bargaining power in the EU i.e. up to 18% of EU’s single market which is the world’s largest trading bloc. It’s true that now The Great Britain can enjoy the whole cake instead of having a piece, but they shall also face the consequences all alone. And one of those consequences would be to revive the falling economy of the UK post exit. Per stats the expected overall GDP fall in the UK would sum up to 26 billion GBP to 55 billion GBP which is estimated to be twice as big as the total income loss of the member states of the EU.
Checklist for Traders
- From January 1 2021, UK becomes a THIRD COUNTRY to EU. Which basically means UK is no more entitled to enjoy the luxury & rights given to the member states. Not leaving out the EU’s VAT scheme, which shall no longer be valid for third countries. Meaning VAT added with customs duties and handling fees must be beard by the traders with mandatory customs clearance procedure.
- Mandatory EORI (Economic Operators Registration and Identification number) number for companies of the importing country for import and export between third countries and the EU.
- Mandatory Customs/Transportation documents: CN22 (<300 SDR) & CN23 (>300 SDR) to be beard by the exporter.
- Mandatory T1 transit documents in EU: For the free movement of goods within the EU originated outside the EU.
- Other Documents required: Sales contract, Commercial & Performa invoice, Shipping bill/Airway bill, Bill of Lading, Packing list, Customs declaration and Insurance Policy.