23 January 2019
It is possible that in the short term the UK will remain within the EU’s Customs Union, lowering immediate risks to existing supply chains. But longer-term changes may emerge from the Brexit process, and a cliff-edge “no deal” rupture in March with serious consequences for businesses is a possibility.
Major accountancy firms have been warning for months that Brexit’s potential multi-faceted impact on trade costs may put pressure on companies’ working capital. Writing in March 2018, PwC’s Johnathon Marshall also emphasised the importance of companies’ reevaluating their supply chains. Marshall identified seven areas businesses should take into account: customs and tariffs, legal changes, value-added tax (VAT), systems for managing import and export declarations, supply chain hubs, lead times, and grants and incentives.