Manufacturing

Key facts: 

• Supply chains may be affected by new rules following the end of the transition period.
• Importing and exporting (consumer) goods, semi-finished products and raw materials requires compliance with new 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 changed after the transition period ended. 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.
• Since 1 January 2021, EU staff that come to the UK to work 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 are subject to customs controls and may attract  tariffs.
• Rules around placing products on the EU and UK markets are different. UK services providers are subject to more local rules in an EU country.

Regulation

• Recognition of harmonised goods and rules around importing and using chemicals is 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• The EU’s main chemicals regulation, REACH, has been replaced by UK REACH.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 about changes to exporting goods to EU countries.
• Find out about changes to importing goods from EU countries.
• Call the UK Export/Import helpline for support: 0300 3301 331.
• Check what it means 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?

The EU–UK Trade and Cooperation Agreement lays down the final conditions for UK-EU trade in (consumer) goods.