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Firms told to prepare for no-deal Brexit | Firms told to prepare for no-deal Brexit |
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Businesses that trade with the EU need to take steps now to prepare for the possibility of a no-deal Brexit, a government minister has warned. | Businesses that trade with the EU need to take steps now to prepare for the possibility of a no-deal Brexit, a government minister has warned. |
Financial Secretary to the Treasury Mel Stride told the BBC's Today programme "there is a call to action now". | Financial Secretary to the Treasury Mel Stride told the BBC's Today programme "there is a call to action now". |
Later on Friday, HMRC is due to publish an update to its advice on how firms should prepare for a no-deal scenario. | Later on Friday, HMRC is due to publish an update to its advice on how firms should prepare for a no-deal scenario. |
However, Mr Stride called the prospect of the UK leaving the EU without a deal an "unlikely event". | However, Mr Stride called the prospect of the UK leaving the EU without a deal an "unlikely event". |
Speaking to the BBC, Mr Stride said: "The time is now, there is a call to action now. | Speaking to the BBC, Mr Stride said: "The time is now, there is a call to action now. |
"Those who are importing or exporting into and out of the EU 27, in the unlikely event that there is a no-deal at the end of March, will need to take certain steps. They need to do that now." | "Those who are importing or exporting into and out of the EU 27, in the unlikely event that there is a no-deal at the end of March, will need to take certain steps. They need to do that now." |
In October, HMRC released a partnership pack designed to help businesses prepare for changes at the UK border if there is no-deal exit. | In October, HMRC released a partnership pack designed to help businesses prepare for changes at the UK border if there is no-deal exit. |
Mr Stride said businesses needed to "get a customs agent on board" or "look at software they can use to make sure (of) their import and export declarations". | Mr Stride said businesses needed to "get a customs agent on board" or "look at software they can use to make sure (of) their import and export declarations". |
He added that firms should register for an Economic Operators Registration and Identification Number (EORI number) - a system of unique identification numbers used by customs authorities throughout the European Union. | He added that firms should register for an Economic Operators Registration and Identification Number (EORI number) - a system of unique identification numbers used by customs authorities throughout the European Union. |
Businesses should also be prepared to pay custom duties in the event of a no-deal Brexit, he warned. | Businesses should also be prepared to pay custom duties in the event of a no-deal Brexit, he warned. |
The latest HMRC update marks a shift in tone, with businesses being urged to take action now. | The latest HMRC update marks a shift in tone, with businesses being urged to take action now. |
The new version of the partnership pack also includes details about government funding for new IT systems and staff training, which is available to customs brokers, customs intermediaries and traders. | The new version of the partnership pack also includes details about government funding for new IT systems and staff training, which is available to customs brokers, customs intermediaries and traders. |
On Wednesday, British business groups criticised politicians for focusing on infighting rather than preparing for Brexit, warning that there was not enough time to prepare for a no-deal scenario. | |
The groups said companies had been "watching in horror" at the continuing rows within Westminster. | The groups said companies had been "watching in horror" at the continuing rows within Westminster. |
Nimisha Raja, chief executive and founder of Nim's Fruit Crisps, says businesses need to be prepared for a lot more paperwork, if there is a no-deal Brexit. | |
Nim's Fruit Crisps sometimes has to import fruit from the EU to make its products, when fruits such as apples and pears are out of season in the UK. | |
"I hadn't realised quite how much we would need to do," she told the BBC. | |
Preparing for the changes in the import procedure was "quite an onerous task, and possibly [involving] extra cost in admin staff". | |
She would definitely be interested in applying for grants to ease the load. | |
At the moment, in order to import any item from outside the EU, importers need to locate the specific commodity code relating to each specific product. | |
In a no-deal scenario, this would mean British businesses would need to be able to locate commodity codes from HMRC's database, which would be time-consuming. | |
"Having access to funding and not having to devise it from scratch, that's brilliant. At least it would be something to start off with," said Ms Raja. | |
"There are possibly lots of costs involved that we haven't planned for. | |
"What will have a huge impact on cost will be whether you do all this yourself or whether you get an agent - but an agent will cost a lot." |