Driving enterprise is the key to the success of our region.
And - as accountancy and business advisory firm, Dains knows only too well - having access to support and specialist advice is more important than ever.
North Staffordshire has, of course, been a hotbed of ingenuity over the years, spawning many a successful business.
But many have also been dealt a hard blow over the past couple of years - and this year has demanded innovation and grit.
Whilst Covid-19 has been a challenge at the forefront of business, a new hurdle was thrown into the mix on January 1 2021 when the º£½ÇÊÓƵ officially departed from the EU.
That's where the support of Dains - long-term sponsor of the prestigious Growth Award for many years - has proved invaluable.
- which is inspired by the awards and considers it a privilege to work with fast-paced businesses and their entrepreneurial owners - has expanded its indirect tax team to meet the increased demand from SME businesses for customs advice and support with compliance.
Its first challenge was to help local businesses with the many teething problems and red tape that had impacted on trade with the EU.
We asked it to guide us through the top issues that businesses need to consider when trading with the EU and for help and advice on how to avoid the potential pitfalls of trading with international business partners.
EU – º£½ÇÊÓƵ Trade and Cooperation Agreement
Under this agreement, there should be no duty payable on º£½ÇÊÓƵ origin products supplied to the EU and there should be no duty payable on EU products supplied to the º£½ÇÊÓƵ.
However, if goods are imported into the º£½ÇÊÓƵ and then re-exported to the EU, duty will become due unless the product has been substantially transformed.
This has resulted in unexpected and unforeseen costs for businesses which had assumed there would be no duty on EU-º£½ÇÊÓƵ trade. This has created an issue with double taxation where duty is incurred and paid twice.
Commodity codes
Using the incorrect commodity code for imported goods could result in the wrong amount of duty being paid
Selecting the correct commodity code for your goods can sometimes be complex but it is essential that you use the correct one to reflect the use of the product and to ensure you pay the correct tariff.
Further changes took place on January 1 for commodity codes, with a 10% change made by the World Customs Organisation to º£½ÇÊÓƵ codes.
Rules of Origin
The origin rules introduced as part of the Free Trade Agreement are incredibly complex and can vary according to the commodity code used. The rules of origin requirements are some of the most important rules that businesses need to understand and follow when trading with the EU. This was brought into sharper focus again on January 1, 2022 with a tightening of the regulations.
Incoterms
Incoterms set out the responsibilities between a seller and a buyer in respect of the costs, risks, and tasks involved in international trade.
The incoterms also dictate who is the importer and the exporter of the product. For example, if a business supplies on an ex works (EXW) basis then the customer is responsible for the export declaration.
If a º£½ÇÊÓƵ business supplies to a customer in an EU member state on a Delivered Duty Paid (DDP) basis it means that the supplier will be the importer of record and could have an obligation to register for VAT in the country of import.
This can result in increased administration and costs especially as the supplier may need to appoint an indirect representative in the country of import.
Therefore, supply chains and incoterms need to be understood in order to avoid unnecessary costs.
- For more information about Dains
About the awards
The Stoke-on-Trent Live Business Awards will pull together the very best of businesses in the region.
With 14 categories specifically designed to be as inclusive as possible, it's hoped that a wide array of small businesses, entrepreneurs and larger firms will put themselves forward, to reflect the diverse business community that Stoke-on-Trent has.
- The Stoke-on-Trent BusinessLive Awards 2022 are open for entries until January 10, 2022, with the grand ceremony taking place on Thursday, April 28, 2022. To enter or find out more information .
