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rexit is a fact, and the end of the transition period will be here before we know it.
Whether you’re a British e-commerce retailer shipping into European markets, or a
BEuropean store delivering into the UK, Brexit will affect how you do your business.

“A GOOD UNDERSTANDING OF WHAT BREXIT IS AND WHAT YOU NEED TO

ARRANGE BEHIND THE SCENES WILL ENSURE THAT YOUR PRODUCTS REACH

YOUR CUSTOMERS ON TIME. THIS IS DONE BY FORMING A STRONG BREXIT

STRATEGY AND BY STARTING YOUR PREPARATIONS TODAY.”

In this article, we will attempt to explain what the current state of Brexit is and what the various
outcomes might be if you’re a European e-commerce retailer shipping into the UK in 2021. We

will provide you with a simple, step-by-step guide to administrative and logistical preparations
you can take now to manage the transition, no matter the outcome.

What’s the current Brexit situation? If trade with the UK falls under WTO terms, it’s unclear how
On June 23, 2016, the UK held a referendum and opted to it will handle trade with countries across the globe without
leave the European Union. Due to delays and new deadlines, the benefit of EU infrastructure. On the other hand, it will
this became January 31, 2020. This started the 11-month also give them the opportunity to form very specific trade
transition period, thanks to a deal jointly agreed on by the deals for the UK situation.
EU and the British government.
Brexit will mean stricter customs regulations for goods
The transition period assured that everything would entering and leaving the UK. Some products might become
essentially remain the same as before, with the UK still part restricted or prohibited. Longer shipping times and higher
of the EU. But it bought the necessary time to hammer out shipping costs are a likely result on both sides.
a new relationship so that both parties might enjoy a softer
landing. With an end to the free movement of goods, British products
are all classified as non-EU for goods both going into and out
Both parties are negotiating a trade agreement that will of the UK. This will mean customs declarations requirements,
determine future economic relations in 2021 and beyond. At forms and labels and complete information about the
the moment, the UK is still part of the EU’s Customs Union contents of packages, the shipper and receiver.
and Single Market.
Tariff increases might also be a result of the new relationship
However, starting January 1, 2021, that will change. As as both the UK and EU might raise import costs for certain
future regulations and trade deals are currently being items. Supply chains might also be affected; if you import any
negotiated during this transition period, it is still unclear of these items across the UK-EU border, your process may
what Brexit will look like next year. If no deal can be reached, be affected. Given the higher costs, greater complexities and
the UK will operate as a fully non-EU country. Trade potentially longer shipping times, the Brexit effect on cross-
between the EU and the UK will be regulated by WTO rules. border retail might be quite tangible.

The Brexit Effect Getting ready
What could Brexit mean concretely? The UK is currently Whether you are exporting or importing across the channel,
Europe’s biggest e-commerce market. As many as 70% of now is the time to prepare your Brexit strategy. This will
European online shoppers and 69% of British shoppers might provide two benefits: it will make for a smooth year-end
[i]
decrease cross-border purchasing as a result of Brexit . transition for yourself and your customers and prepare your
shipping infrastructure to take on the rest of the world.

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