ImagesMagUK_November_2021

BUSINESS DEVELOPMENT www.images-magazine.com 32 images NOVEMBER 2021 It’s nearly a year since Brexit – I’d like to start selling T-shirts to EU customers again, but I’m concerned about all the red tape. What’s a simple way to export to the EU? S elling T-shirts and other branded garments into the EU post-Brexit has not been easy. I know that some have given up completely as it seems too difficult. But the problems can be solved and there is free help available. What’s changed? The good news is that the EU agreed a zero tariff and zero quota trading agreement. The challenge is in the additional bureaucracy that you’ll encounter. The main ones to consider are: ■ New customs controls around product certification. The food industry has been impacted by this more than the garment industry, but you still need to check. ■ Changes to transport, logistics and fulfilment, resulting in delivery delays. You need to build this into your delivery times. And I appreciate some customers are not keen on waiting! ■ Sales tax changes that are collected in each country. Your buyer has to settle the bill upfront. ■ Changes to duty and eligibility for preferential rates. These rules are not straightforward. Exporters from the UK are finding it difficult to classify goods. Managing the change We speak to many companies in the garment industry and other sectors, and they are adapting to the changes in different ways to suit them. One of the most successful ways is to establish a base within the EU as that way you only have to enter the EU and deal with the bureaucracy once. If you’re too small to do that you might want to consider partnering with an existing company in the EU to manage the bureaucracy for you. This is worth doing even if you’re selling direct to consumers. The base in the EU is simply to act as a single import destination, so instead of exporting separately to Germany, France, Italy, etc – which would involve different bureaucratic procedures for each entry point – you import to just one country and have just one set of procedures to go through, and then the decorated goods are sent on to the customers from there. Establishing a base in the EU Establishing a base in the EU is not as difficult or expensive as you might fear. However, it is easy to get it wrong. Here are the key things to consider when choosing a place: Location Where are your primary markets and those you’re targeting? Your base needs to be within optimum reach. That’s doesn’t necessary mean close to (or in) your target markets. The transport links can make a location more accessible than one that appears to be better on the map. Transport links You need a base in a place that has a strong and well- developed infrastructure. Sea and air hubs will make your life much easier, plus a good and well-developed network of roads and rail. Networks Some regions are more difficult to navigate (to identify who is the right person and how things connect) than others. The easier ones are typically the smaller countries where the different areas of government are more connected and there is less bureaucracy. Language Unless you are fluent in EU languages, you’ll find countries where there is a high degree of proficiency in English far easier to work with than those that don’t. Supply chain costs Look at rental prices in the region and other costs. Tax Corporation tax will impact on your profits and can vary significantly from one EU country to another. Laws Review the laws relevant to the garment and ecommerce sector. The UK is an easy place to start up a business, as is Flanders, which scores favourably on all of the above points; in other EU states it is not as straightforward. Free help Flanders is becoming a popular choice for UK companies for their base. Flanders Investment & Trade is an official body of the region. We’re able to offer you help with accessing the EU through Flanders, and best of all we don’t charge. If you do need to engage a consultant or partner, we can help ensure you engage the right one for the right price. As a first step you’ll find useful information on our website about how we can help you operate in the EU. On the site we offer a Brexit impact scan service, which provides you with a calculation of customs duties and additional costs for customs declarations, as well as an interactive report with possible Brexit strategies. We also run regular free webinars on topics such as navigating customs changes and exploring the impact of Brexit on UK supply chains. Expert advice on the business of running a garment decoration company Q&A Astrid Geeraerts is the head of Investment at Flanders Trade and Investment (London), which facilitates investment projects in Flanders. www.FlandersInvestmentandTrade.com/UK