SMMT launches car industry Brexit aid package

With concerns growing over the prospect of a no-deal scenario, SMMT said that the programme has been set up to provide support to the SMEs who form the backbone of the UK’s automotive sector but lack the resource to prepare adequately for the dramatic and immediate change to trading conditions between the UK and EU in the event of a ‘no-deal’ Brexit.

In this scenario, there will be new, potentially unfamiliar requirements for businesses. Calculations as to the value and proving the origin of goods will have to be made and there could be delays to the movement of components into and out of the UK which may require warehousing or changes to raw material stocks. New customs arrangements will present a particular challenge, not least the increased paperwork and time required to fill in more detailed customs declarations – customs guidance alone on moving goods outside of the EU stretches to some 88 pages. Furthermore, there could be cashflow implications associated with the payment of tariffs and other taxes.