Getting Business Brexit Ready

The UK is scheduled to leave the European Union as of 11pm on Friday, 29 March 2019. As of 30 March 2019, the UK will be a third country.

If the Withdrawal Agreement is ratified before 30 March 2019, most of the legal effects of Brexit will apply as of 1 January 2021, that is, after a 21-month transition period. In the absence of a Withdrawal Agreement (No-Deal), EU law will cease to apply to and in the UK as of 30 March 2019.

The Government’s position is that it hopes that a ‘no deal’ scenario can still be avoided but that it must also be prepared for all possibilities.

Therefore, all businesses concerned must prepare, make all necessary decisions, and complete all required administrative actions, before 30 March 2019 in order to avoid disruption.

Brexit Steps – What you need to do

Professional Brexit Business Consultancy & Advice

In addition to the current supports open to the Irish seafood sector BIM has a range of supports for Seafood businesses to prepare for Brexit. Companies can avail of specific mentoring and consultancy of up to two days to help develop their Brexit strategy to mitigate associated risks.

This may include addressing some of the key issues such as:

  • Currency hedging
  • Supply chain analysis
  • Logistics
  • Raw material sourcing

To apply for the Brexit Support Programme please email brexit@bim.ie or talk to your key account manager.

Logistics

The land bridge, potential delays and increased documentation may become a factor in any new post Brexit arrangement.

Fresh species using the land bridge during 2017  
Species Volume tonnes
Salmon 10,688
Shellfish 6,259
Pelagic 6,185
Whitefish 2,656
Misc 148
Total 25,936

 

Trade

Ireland is dependent on seafood imports from the UK with €219M (65% of total in 2018) imported and €81M (12% of total in 2018) exported. If a trade deal agreement is not reached, the UK will return to, what is referred to as a Third Country and World Trade Organisation (WTO) tariffs will apply. As the VAT on food imports is zero the only extra payment for the importer will be the tariff. Some examples on the levels of duties for various fish species are detailed below.

WTO Tariffs (%) for key seafood products

  Fresh or Chilled Frozen Fresh or Chilled Fillets Frozen Fillets Prepared Salted/ Brine Dried etc. Fillets Frozen Meat Dried etc. Smoked Live
Cod 12 12 18 7.5 20 13 16 7.5 12    
Whiting 7.5 7.5   7.5              
Haddock 7.5     7.5              
Hake 15 15   7.5              
Monkfish 15 15   15              
Megim 15     15              
Dublin Bay Prawn 12 12                  
Crab 7.5 7.5     8         7.5  
Mussels 10 10     20            
Oysters   9     9           0
Shrimps and Prawns   12     20            
Mackeral 0 0   15 25         14  
Horse Mackeral 15 15                  
Herring 0 0 0 15 20       12 10  
Salmon 2 2 2 2 5.5 11       13  

Example 1: An importer imports fresh or chilled whole salmon from the UK worth €100,000 in 2018. A 2% import tariff will now be charged on these imports increasing the cost by €2,000.

Example 2: An importer imports fresh or chilled fillets of cod from the UK worth €100,000 in 2018. An 18% import tariff will now by charged on these imports increasing the cost by €18,000.

Example 3: An exporter exports prepared mackerel to the UK worth €100,000 in 2018. A 25% export tariff will now be charged in the UK increasing the cost to the buyer of these exports by €25,000.

Additional Supports 

BIM will assist companies in availing of other relevant supports from the Department of Agriculture, Food and the Marine and State Agencies (including Bord Bia and Enterprise Ireland). These supports include loan schemes, workshops, funding and market diversification.

For further information please go to:

Contact Us

Email: brexit@bim.ie

or talk to your key Account Manager