Mats Persson, EY’s UK Brexit Strategy Leader and former adviser to 10 Downing Street, comments on today’s 'No-deal' Brexit guidance:
EY comments on today’s 'No-deal' Brexit guidance
“The steps announced today will help reduce some friction in the event of a 'No-deal' scenario, mostly for companies that import to the UK. In particular, the pharmaceutical sector will be relieved to see a unilateral recognition of EU testing and authorisation, reducing the need for costly duplications in the short-term, which could have cost some companies millions of pounds. Allowing for VAT to be dealt with in VAT returns rather than to be paid at the border will reduce cash flow impacts, particularly for smaller firms; and a selective approach to customs checks will help reduce the risk of delays and costs at the border.”
“Whilst welcome, these notes can only cover some of the impact businesses face in a 'No-deal' scenario and of course only cover the UK side. UK customs waving through a shipment will have limited effect if that shipment is stopped on the EU side and there are delays on that side. The Government is right to challenge the EU to reciprocate some of these arrangements to avoid the most damaging friction, not least for EU-based firms, should a deal not happen.”
“Fundamentally, no amount of 'No-deal' planning can fully mitigate the effects of falling back on WTO rules in March next year.”
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