How will Brexit affect your organisation?

The United Kingdom will be leaving the European Union on 29 March 2019. The exact implications of this remain unclear at the moment. It is uncertain, for instance, whether a ‘hard Brexit’ or a ‘soft Brexit’ will follow.What is definite though is that Brexit will affect all organisations that do business with the UK. Moreover, any staff working in the UK are likely to be affected as well.

What will be the consequences of a ‘hard’ Brexit?

A ‘hard’ Brexit would require Britain to trade under the World Trade Organisation Rules. This will:

• Affect import levies
• Affect customs procedures
• Require extra certification and checks
• Create a loss in market access
• Ensure intellectual property rights cease to apply in the UK

We present a more detailed analysis of three key Brexit questions below.

My organisation does not do business with the UK. Will Brexit affect my organisation in any way?

That remains to be seen. The UK’s exit from the EU could affect domestic trade in the Netherlands. This would be the case, for instance, if you have customers who do export to the UK or if your suppliers import products from the UK. This is why it is important to have a clear understanding of the business activities of both your customers and your suppliers. If Brexit does not directly affect your organisation but impacts your competitors, you should factor this into your strategy.

Will there be a transition period?

Negotiations regarding the withdrawal agreement are in full swing at the moment. If the EU and the UK reach agreement, the transition period will last up to 31 December 2020. Until then, many things will remain as they are and, in nearly all cases, no new customs formalities will be introduced.

Please note: should the EU and the UK fail to strike a deal before 29 March 2019, midnight, this will result in a ‘hard’ Brexit. We recommend you and your organisation prepare for a ‘hard’ Brexit as at this time we have no way of knowing whether a ‘hard’ Brexit or a ‘soft’ Brexit will ensue.

What can you do to prepare for Brexit?

The Dutch government has developed two instruments to help you identify the risks Brexit poses to your organisation and to help you take measures to mitigate these risks. These two tools are referred to as the ‘Brexit Voucher’ and the ‘Brexit Impact Scan’.

Brexit Voucher
The Dutch Ministry of Foreign Affairs has decided to help organisations by offering Brexit vouchers. A voucher entitles organisations to a 50% reimbursement of the actual costs incurred when seeking advice regarding Brexit and its implications. The maximum amount that can be claimed is
€ 2,500, exclusive of VAT.

To be eligible for this voucher, you must satisfy the following terms and conditions:

• Your organisation must qualify as a Dutch SME (not based in Bonaire, Sint Eustatius or Saba).
• You must have economic interests in the UK (England, Scotland, Wales and Northern Ireland).

Brexit Impact Scan
This scan provides insight into the types of issues you might run up against if the UK exits the EU.

Recommendations

We recommend preparing for Brexit as soon as possible. To find out more, please contact one of our accon■avm advisers by sending an email to international@acconavm.nl or by filling out the contact form below – no strings attached. We would be happy to discuss Brexit-related issues with you to see how we can assist you and your organisation further.