AS managing director of a company that sells roofs, Adrian Buttress was not going to let preparing for the end of the UK transition period go over his head.
“It’s not rocket science and preparations can be completed within a couple of weeks,” Adrian says. “There’s plenty of help available, like the Government website, which explains it all. But, as the television adverts say, time is running out. So act fast otherwise, after Christmas, if your paperwork isn’t in place and you don’t have an EORI number to transport goods to and from Europe, your imported stock could literally sit at the docks, as Customs won’t allow it through.”
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It makes sense for every business, large and small, to check what changes they need to make to prepare for 1 January, when the UK will be out of the customs union and single market.
Adrian’s company Permaroof – based in the heart of England in Alfreton, Derbyshire – imports and distributes rubber roofs made by Firestone in the USA, the company who makes the tyres. Rubber roofs for sheds and extensions are a new concept in the UK, and Permaroof – which celebrated its 20th birthday in November – was at the vanguard of introducing them.
Adrian – a man with a van back in the early 2000s – was Permaroof’s best customer, extolling the roofs’ virtues to his clients. “When I explained that they last for 50 years and don’t leak, people were impressed,” he says. Bosses at Permaroof noticed his enthusiasm for their product and asked him to join the company in 2003. It’s since gone from strength to strength, now employing 42 people and supplying rubber roofs to stockists around the UK. Adrian became MD three years ago, and has expanded the company’s portfolio to include Permalawn artificial grass and Permafence metal fencing.
Help at hand
Business groups around the country, like the Federation of Small Businesses (FSB) and the Chambers of Commerce network, are offering help to their members in navigating the new rules.
“Small business owners should be consulting the Government’s site – as well as our own dedicated hub – and considering contingency plans for different outcomes,” James Sibley, FSB’s head of international affairs, says.
And the national network of Chambers of Commerce has worked with HMRC to develop ChamberCustoms – a customs advice, training and brokerage service.
“The National Audit Office estimates that customs declarations could surge from the current annual volume of 55million up to 255million from January 2021, impacting every business that imports or exports goods,” says Stuart Patrick, chief executive of Glasgow Chamber of Commerce.
“EU member countries account for just over half of imports into the UK, so the volume of checked goods passing through our ports will increase significantly.
ChamberCustoms will clear goods for import and export at every port in the UK – I would strongly advise every business that trades with the EU to sign up without delay.”
Government grants are available to help businesses with training – through courses such as those run by ChamberCustoms – on customs declarations, and any IT improvements that the new rules might require.
So how will the UK’s new relationship with Europe affect Permaroof? Well, the adhesive for the roofs is imported from Poland, Permalawn from Belgium and Permafence from Ireland. Come 1 January 2021, VAT and import duties will be due on goods imported from Europe.
“We aren’t daunted by that because we import the roofs from America and have always paid VAT and duty upfront on them” Adrian says.
Business travel to Europe is another area that bosses need to prepare for, as there are
potential new rules around visas for work trips. But, Adrian says, the Covid-19 pandemic has made him realise he could, if necessary, forego his two annual trips to Firestone’s European head office in Zaventem, Belgium.
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“Obviously this year I couldn’t visit Belgium so I’ve been chatting to the team there on Zoom,” he says. “I’ve realised that video calling saves time and money.”
Adrian’s forward planning for the end of the transition period means that Permaroof currently has warehouses filled with enough stock to last six months – just in case there are any delays at ports. “We’re lucky we had the money to outlay on that,” he says. He’s not worried about the end of transition though – in fact, he’s viewing it as an opportunity.
Checklist for change – importing and exporting
Do you have an EORI number that starts with GB? You’ll need one to move goods between Great Britain and the EU.
If you’re importing from or exporting to the EU, you’ll need a commodity code to find out whether duty and VAT is payable.
If you move goods into, out of or through Northern Ireland, check the latest guidance.
“Leaving the EU hasn’t scared us in terms of expansion – quite the opposite,” he says. “We’re doing more PR and advertising to let customers know we’ve got lots of stock. And I’m looking at getting our metal fence system manufactured in the UK, to avoid import duties from Europe. For the construction industry, the show must go on – I think the end of transition and the pandemic have acted almost like a coil spring for our sector, as we’ve had to formulate new plans. Once something close to normality resumes, those strategies will, I believe, lead to a large boom of business.’
So follow Adrian’s advice, and get your house – roof and all – in order for 1 January 2021.
