Understanding the Customs Impact and Tactics to Mitigate the Impact of Brexit.
It is essential for businesses to understand the customs impact of Brexit including:
- additional duty and erosion of profit margins
- import VAT and cash-flow impact
- additional administration and system changes
- clearance costs
- potential supply chain delays.
Armed with an insight as to the potential impact, businesses then need to understand the options available to mitigate any adverse effects. Then they can take advantage of new opportunities, including the timelines and investment costs of any planning.
However, significant uncertainty remains making it difficult to chart a course forward and make the necessary investments. This is a problem as any mitigating action will take time to implement. Uncertainty leads to delay which in turn exposes businesses to the risk of unmitigated exposure to the adverse impact of Brexit.
This is where Customs Connect can help.
Customs Connect’s Brexit Modelling Tool
Our Brexit modelling tool takes your company’s data and runs it through our algorithms to report the customs impact against several potential scenarios (e.g., reverting to WTO rules, Free Trade Agreement). It will show what you are paying in customs duty now and assess what you may pay once Brexit is in place.
Our tool also looks at other customs areas (e.g. origin, valuation adjustments, transfer pricing and its impact on the customs value, export controls, etc.) which could be impacted by Brexit.
The model then provides an insight as to the planning available to mitigate these changes, breaking them down by value, time to implementation, investment costs and sensitivity to various Brexit scenarios.
We also track changes and developments on the Brexit process, revising any assumptions built into our modelling and updating the outputs.
