Top 10 recommendations
Our recommendations apply to all impacted businesses. For additional context on what’s changing, broader actions and practical tips on implementation, explore the links below or read on.
1. Supply chain
Finalize strategies for critical inbound/outbound transport routes that may give rise to logistical pressure points for your key goods flows. These routes will most likely present the highest risk for delayed and disrupted deliveries.
2. Trade in goods and customs
Identify goods flows critical to the continuity of your business and then establish your border responsibilities on a per flow basis. Confirm that all necessary registrations and/or authorizations are in place, you have the master and transactional data you need, e.g., tariff classifications, and you understand how you will meet those requirements operationally.
3. Trade in services
Identify any immediate authorizations or licences required to continue providing services after 31 December 2020.
4. Talent — workforce and people
Ensure your travelers, remote workers, and business stakeholders understand both the vastly different travel landscape after 31 December 2020 from an immigration and pandemic restrictions perspective.
5. Regulations and compliance
Identify ‘day one’ changes to your compliance obligations under product safety and similar legislation, particularly for UK trade into the EU.
6. Tax and finance
Analyze short-term cash flow and working capital requirements taking into account possible Brexit disruptions as well as registering for additional VAT obligations and update systems accordingly.
7. Legal and contracts
Check material business-critical contract terms to assess risk of termination or significant liability from any inability to perform your obligations and plan accordingly. Claims related to delay penalties, Material Adverse Change (MAC) clauses, force majeure, time being of the essence and specific Brexit clauses could apply on or shortly after 31 December 2020.
8. IT, systems and data
Ensure the IT system and infrastructure changes are well understood — every business change item in this document will almost certainly have an IT impact. Confirm that necessary changes are well underway with a view to completion as close to 31 December 2020 as possible.
9. Commercial and pricing
Identify and engage with priority customers, considering possible increases in costs and border delays and noting that these will likely arise both in a deal and no-deal scenario. Understand impact of changes in costs across end-to-end value chain.
10. Northern Ireland
Continue to check for updates on Brexit guidance on moving goods under the Northern Ireland Protocol, including recent guidance from HMRC on VAT for Great Britain to Northern Ireland movements and EORI numbers.