Manufacturing

The transition period has now ended and new rules for business and trade came into force on 1 January 2021.

Key facts: 

• Supply chains will be affected by new rules after the transition period ends.
• Importing and exporting (consumer) goods, semi-finished products and raw materials will require compliance with two sets of rules and potentially an EU presence.
• CE marking will become UKCA for the UK market.

Examples include:

Furniture, household appliances, toys, fashion, shoes, food and drink manufacturers, cosmetics, automotive, aerospace, medical devices, medicines, satellite applications and businesses operating within the supply chains of ‘original equipment manufacturers’  (OEMs).

How we buy and sell products, provide services and hire staff from the EU, will change after the transition period ends. Businesses are advised to consider their route to market and look at what it means for their margins when they export and import to and from European countries on different terms, and when costs of recruitment will rise.

People

• EU nationals currently in the UK can apply for (pre-)Settled Status under the Settlement Scheme.
• After the transition period ends, EU staff that come to the UK to work, will need to apply under the points-based immigration system, and businesses have to sponsor applicants they want to recruit.

Trade

• Import and export of goods will be subject to customs controls and may attract  tariffs.
• Rules around placing products on the EU and UK markets will be different UK services providers will be subject to more local rules in an EU country than now.

Regulation

• Recognition of harmonised goods and rules around importing and using chemicals will be different.
• CE marking will be replaced by a UK Conformity Assessment (UKCA) mark.
• Conformity assessments and certificates for Europe-bound products will have to be issued by an EU-recognised notified body.
• Product safety standards and metrology in the UK may also change.
• The EU’s main chemicals regulation, REACH, will be replaced by UK REACH.

To do

People

• Support and encourage current EU staff to apply for pre-Settled Status or Settled Status under the EU Settlement Scheme to ensure that they maintain their right to work. Check out the EU Settlement Scheme Employer Toolkit.
• Read about the details of the new points-based immigration system.

Trade

• Find out what exporting goods to EU countries will mean after the transition period ends.
• Find out what importing goods from EU countries will mean after the transition
  period ends.
• Call the UK Export/Import helpline for support: 0300 3301 331.
• Check what it will mean to provide services in EU countries.

Regulation

• Find out how to comply with UK product safety standards and metrology when importing goods.
• Find out how to comply with REACH or read guidance from ECHA.
• Find out how rules will be different for chemicals, vehicles and aerospace.
• Check the transition page of the Health and Safety Executive.
• Check labelling requirements for footwear and textiles.
• Look up rules in the EU member states for non-harmonised goods.
• You may also want to read the EU Readiness Notices on REACH, plant protection products, plant health, plant reproductive materials, plant variety rights, biocidal products, medicinal products, cosmetic products, industrial products, emission standards, type approvals, pyrotechnic articles, explosives for civil uses, fertilisers, detergents, GMOs, animal feed, mineral waters and EU food law.
• Understand changes to your VAT obligations and what it means to trade as a business from a non-EU country with regard to VAT and read specific guidance on VAT on goods.
• Check the ICO guidance on GDPR.

Employing and managing staff

Useful resources to help businesses understand the implications of leaving the EU on employing and managing staff include:

• Home Office guidance for EU, EEA and Swiss frontier workers who want to continue working in the UK
• The EU Settlement Scheme enables EU,EEA and Swiss citizens and their family members who live in the UK before the end of the transition period to continue to live, work and study in the UK.

Go to the Government’s checker tool and the EU Readiness Notices for all other questions on EU exit and your sector.

What’s next?

Trade under EU rules will continue as normal until the transition period ends. A new trade agreement will lay down the final conditions for UK-EU trade in (consumer) goods. This may include some degree of alignment of standards.

Disclaimer At the time of writing, the transition period ends on 31 December 2020, and the changes outlined in this fact sheet will occur from 1 January 2021. If that date slips, the changes will still happen, but at a later date. For latest updates go to www.gov.uk/transition.