Despite the recent Brexit vote, a leading business and financial advisor is urging Scottish food and drink companies to prepare for a significant new European Union regulation that could seriously impact on profits.
As negotiations on the UK’s exit from the EU continue, new European rules and regulations will continue to apply to Scotland.
Grant Thornton is urging companies that import large amounts of products into Scotland to look in detail at the new Union Customs Code (UCC), which was introduced throughout Europe on 1 May 2016.
The UCC is one of the biggest changes to the EU’s customs rules and regulations in more than 20 years and has been designed to cut red tape and bring a number of separate regulations together under one code.
A wide range of businesses will be affected by the new rules, including Scottish food and drink companies currently using procedures, such as customs warehousing and processing under customs control to mitigate the impact of duty on imported products on their monthly cash flow.
Stuart Brodie, Head of VAT in Scotland at Grant Thornton, said:
“Britain may have opted to leave the EU but a raft of new regulations and rules are still on their way, while negotiations continue. The introduction of the Union Customs Code is ultimately aimed at cutting down the vast number of different codes, rules and regulations and making it a simpler process for everyone involved. In the long term, that’s naturally a positive step. However, many companies have simply not been given enough information on the change and could see their bottom line hit hard if they haven’t fully prepared for the introduction.
“The changes to customs procedures are being introduced gradually to try to mitigate any potential financial damage. However, our advice to any food and drink business that thinks it may affected, is to act now, exploring exactly what this means for you, and if seek professional support and guidance if you have any concerns.”