2. Keep on top of changing regulations
A no-deal Brexit also brings uncertainty to the type of legislation governing
UK business operations after the exit. The sweeping shift in regulation that
could immediately follow a no-deal Brexit would have a real impact on UK
headquarters when making decisions about everything from tax assessments
to data-sharing regulations in its China operations.
This is particularly critical for firms in import-export industries. Businesses
should make sure they are informed about the new rules of origin for
anything imported from the UK to China and have all the appropriate
procedures and documentation in place, and that they review any new
requirements established by new trade agreements negotiated by the
government. In our consultations, one expert from a major international
logistics firm recommended ensuring that businesses compile and maintain a
master database to stay on top of the tariff codes assigned to their products
or imported supplies, in order to facilitate reviewing increases or drops in
tariff rates in the wake of trade agreements. Equally important is to stay
abreast of developments on updates in standards to product labelling,
packaging and so on.
3. Check your consumer markets
Upon leaving the European Union without a deal, British companies with a
significant European consumer base will be immediately subject to the
default tariffs the EU places on all external markets with which its members
do not have Free Trade Agreements, lowering demand for British goods
within the EU.
BRITCHAM POLICY INSIGHTS| PAGE 3