Brexit and how it affects Swedish entrepreneurs

At the turn of the year, the UK left the EU’s single market and many were worried that Swedish entrepreneurs would lose the free trade agreement with the UK. This would have had a major impact on companies trading with the UK. In 2020, exports to the UK have fallen by over 20% in the months of January to August compared to the same period in 2019.

Who is most affected by Brexit?

The UK economy has fallen a lot both thanks to reduced exports and imports, but also, of course, due to the Corona pandemic. About 70,000 people in Sweden work in industries directly affected by exports to the UK and it is in the automotive and mechanical industries that the biggest decrease has occurred. Exports of wood products have also fallen sharply. One industry that could be greatly affected by the UK’s decision to leave the EU is the automotive industry, which risks high tariffs unless the EU and the UK agree on a free trade agreement.

Trade and cooperation agreements from 1 January

This is the date when many entrepreneurs were very relieved when the UK-EU Trade and Cooperation Agreement came into force. The agreement affects imports and exports from the UK with new customs rules. In short, this means that, in the future, the UK will be treated as a non-EU country, at least from a customs point of view. This means that a customs code will be applied in trade with the UK and this will result in the requirement for customs formalities, for example, customs declarations will have to be made on entry and export.

Customs is most affected

The Trade and Cooperation Agreement also provides that no duty is levied if the goods meet the conditions for being considered as originating under the Agreement. In order to ensure that the product has an origin that meets the conditions, an original declaration must be used in the future. This shall be completed on an invoice or other document which shall describe the goods or goods in such detail that they can be identified.

How to apply to become a registered exporter?

If you have been very familiar with the manufacture of the goods or goods, you can use another method, there are a couple of provisions about the importer’s knowledge in order for you to prove the origin of the goods. If the company has not exported goods outside the EU, you need to apply to become a registered exporter. If the application is approved, you will be assigned a REX number. This is what the company needs in order to establish origin insurance for exports to the UK if the value of the goods exceeds the value limit of EUR 6 000.

Do your goods meet the requirements?

You must ensure that your goods meet the conditions set for them to be originating goods, you must have done this before drawing up an original declaration. Try to have an original insurance before you export your goods, but if you are not able to do so afterwards, you can do so afterwards. Under the current agreement, there is a possibility to request preferential documents for up to three years after importation.

How can we minimise the consequences of Brexit?

Companies that export to the UK are the ones most affected. The new regulations make the process of exports and imports more complicated and it is always good to enlist the help of authorised accounting economists to ensure that it is right from the start. At BQ Redovisning you always get help from experienced economists with applications, forms and contact with relevant bodies. We offer personalized service that makes it safe to continue trading with the UK. Contact us for a free consultation.

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