The uncertainty surrounding Brexit continues to concentrate minds. Many companies are only now starting to make preparations for a changed trading relationship with our nearest neighbour and largest trading partner. “On a daily basis, we are being contacted by multinational firms, SMEs, UK-based companies and many others asking what they need to do to get goods across the border after Brexit,” says PwC Global Trade and Customs partner, John O’Loughlin.
That’s before looking at other aspects such as increased IT costs, VAT, customer and supplier relationships, warehousing capacity and storage costs.“There is a lot of preparation required if companies are to be ready. It is a worry to find that many companies have still done nothing at all,” he adds. “It tends to be the larger companies which are coming looking for support.”
There is also a growing realisation among those firms that aren’t so well prepared that only so much can be done in the time remaining before October 31st. “Businesses need to focus on what can be done,” O'Loughlin advises. “The critical thing is to make sure goods can cross the border. They have to make sure goods can get to where they need to go, in or out. After that they have to look at customs and duties and the financial impact on the business.
There is an urgent need for companies and state bodies to invest in the people and the resources needed to process and file these documents. “There is an immediate requirement for them to put that expertise and knowledge in place, but Ireland Inc is struggling with that.”O’Loughlin has a checklist of actions for companies who are just starting to prepare for Brexit. “The first thing to do is understand your supply chains.