You may remember we announced that on 26 May, the CTPA were to hold a special webinar session on ‘Simplifying Brexit: Practical Advice for Small Businesses’, where our CEO Millie Kendall and Sallie Berkerey, Managing Director at Cosmetic Executive Women, shared their valuable and useful insights.
As the UK left the EU with a Withdrawal Agreement, there is a transition period until 31 December 2020. During this transition period, EU law will still be applicable in the UK; whilst at the end of the transition period, as of 1 January 2021, the UK future domestic legislation will become applicable.
However, what this period means for business and what should be done during it can be confusing or unclear. Covered during the webinar were the three various scenarios the UK faces in light of Brexit negotiations and how these would play out. These include:
- The transition period we are currently in is extended
- This transition period is not extended, and a Free Trade Agreement (FTA) is agreed on
- The transition period is not extended, and an FTA is not agreed on.
In addition to other key topics, the session looked closely at cosmetics and chemicals regulations and what actions will need to be undertaken by UK beauty companies selling in the EU and the regulatory framework to be adopted for UK trade, for both e-commerce and bricks and mortar retailers.
Despite the uncertainty faced, CTPA emphasised that companies should act and prepare now for Brexit. Due to the variability of the future developments and the short timings faced, it is crucial to continue to prepare for the scenario that would have the largest impact. They highlighted that this will be especially true if the transition period is not extended, as companies may only have approximately two months to prepare from the end of the negotiations to the entry into force of the terms of the Free Trade Agreement on 1 January 2021. It’s therefore essential to use the time of the current transition period to prepare for business continuity and to avoid serious disruptions.
The session concluded with a highly helpful Q&A covering queries across:
- Imports and distributors
- Trade and customs clearance
- Correct product labelling
- Ingredients monitoring and regulation.
The recording of the webinar will be made available shortly on the CTPA’s Brexit pages via the link below, where you can also find further details on the above areas:
Businesses can also access the CTPA’s advice on ‘no deal’ preparations, which is out of scope but still relevant in the instance where negotiations fall out and the UK and EU continue to trade under World Trade Organisation (WTO) rules:
We will continue to provide updates as they develop.