Blog: Five tips to prepare for Brexit
In less than five months the UK will leave the EU, bringing about major changes for thousands of Danish businesses. Here are five tips for how to prepare your company for Brexit from Anders Ladefoged, Director of European Affairs at DI.
Despite their best efforts, the EU and UK have not yet managed to reach an agreement. There is still reason to be optimistic, but with the exit date hastily approaching, it is only sensible for businesses to consider the consequences of a no-deal Brexit.
A new Brexit checklist (in Danish) from the Danish Business Authority and DI's Brexit toolkit (in Danish) make it easier.
1. Understand the consequences of Brexit
The impact of Brexit depends on the individual conditions of each company, the company’s product, service, business model and activities in the British market in general. After Brexit, EU regulations may not apply in the British market and British regulations may not be accepted in the single market. Be aware that the company’s British certificates, licenses and authorisations may no longer be valid in the EU post-Brexit. Also be aware that the responsibility of the company in the supply chain, stipulated in EU product rules, may change after Brexit. Learn more here.
2. Acquaint yourself with customs duty rules
Trade with the UK will be more difficult post-Brexit because it will be a third country. Depending on what kinds of goods the company trades, customs may apply, and it is necessary to prepare for customs procedures and new VAT procedures. If you have British customers or suppliers, acquaint yourself with the customs rules that will apply post-Brexit – particularly you have little or no experience in trading with third countries.
3. Consider your employees
Because free movement of labour between the UK and EU will become more limited after Brexit, it is important to consider how this will impact your business model and recruitment plans. Examine whether and how employees in the UK will be affected by visa restrictions and new residency rules in the UK.
4. Stay informed and use your network
Use official guides to stay informed. The EU Commission, British authorities and Danish ministries offer guides for companies about what to be aware of in a no-deal situation. Also use your own network to better assess how to handle Brexit in your company. Keep an eye on the activities of your clients, suppliers and partners in order to better predict how your own company may be affected.
5. Be ready by 30 March 2019
Negotiations between the UK and EU are still ongoing, and it is expected that the two parties will reach an exit agreement. However, in the event that this does not happen (no-deal), the UK will be treated by the EU as a third country as of 30 March 2019, which will have a major impact on trade between the UK and Denmark. It is therefore highly important to take the necessary precautions and prepare the company properly prior to 30 March, 2019.
Learn more about how to prepare for Brexit here:
DI’s Brexit Toolkit offers inspiration for how to map the risks Brexit may have for your company specifically.
The Danish Ministry of Industry, Business and Financial Affairs has a Brexit Checklist that gives you an overview of how Brexit can affect your business and what kinds of changes you should prepare for.
The Ministry of Foreign Affairs has gathered Brexit guides from various Danish ministries on its Brexit page. Among other things, you can find guides about customs duties and customs procedures after Brexit.