The UK cars and truck producing market is dealing with fresh difficulties from the looming spectre of Brexit, after the Dutch government warned that business utilizing UK-made parts will deal with fresh import tariffs.
In an on the internet Brexit effect scan tool, the Dutch government’s business company asks businesses: “Do you want to be less dependent on the British market? think about focusing your activities on other countries.”
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Membership of the European Union provides countries the right to free transit of products under free trade rules, meaning products can be moved from EU country to EU country without dealing with import or export tariffs.
And while the Dutch service concedes business owners “know exactly how important the UK market is for your sales as well as profits”, it warns that “After Brexit, parts made in the UK no longer count towards this minimum production in the European Union.” This detail means products utilizing a high proportion of UK-manufactured parts will not count as EU products, as well as will be subject to trade tariffs when transported to other EU countries.
• Motor market requires ‘frictionless’ Brexit
While this advice is presently aimed at Dutch companies, it echoes warnings issued by the EU itself, which has advised that businesses should “treat any type of united kingdom inputs as ‘non-originating’ when determining the EU preferential origin of their goods” after Brexit.