Trade with the EU after Brexit!
Nexus Brexit Solutions
Nexus Brexit Solutions are developed specifically for import-export companies, e-commerce enterprises and manufacturers who are eager to keep and multiply their income and expand their network in the EU market.
They help you do this without authorised representatives, trade with the EU after Brexit, get closer to the customer, simplify interaction with customs and save over 30,000 euro per year.
Over the course of 20 years more than 7000 clients from 83 countries have successfully used our solutions.
Watch this video and find out how Nexus-Europe GmbH solutions help to prevent losses and even profit from Brexit.
Using the example of three British entrepreneurs let’s view the options to help them keep and grow their businesses in the EU.
Sophia is a British entrepreneur. She produces in the UK using components mainly of local origin.
Amare produces in the UK. However, the majority of components for his products are manufactured in Asia.
This is Ashish. His company is registered in the UK. Before Brexit, his company imported products from third countries and distributed them to the whole EU market via the UK.
Nexus-Europe GmbH: Before Brexit, all three of them could easily trade with the whole EU. However the UK trade deals after Brexit have changed. From 16 July 2021, you must appoint an authorised representative based in the EU or the EEA if selling goods without using an importer or a fulfilment service provider. Finding and maintaining an authorized representative will be very expensive. For example, our company, Nexus-Europe GmbH, gets a huge amount of requests from British entrepreneurs who want to sell goods online or directly to end users in the EU. Our Nexus Brexit solutions allow entrepreneurs to trade with the EU after Brexit without depending on authorised representatives.
Ashish: What if I’m going to supply goods through an importer?
Nexus-Europe GmbH: Right, the alternative is to depend on an EU importer who will eat up the largest part of your profits and make your business fully dependent on their conditions and willingness to work with you in the future. For most companies it is very difficult to find an importer in the EU at all. This is because importers must ensure that only products compliant with EU regulations are sold in the market and therefore they are very selective about whom to work with.
Ashish: There is no advantage for me to sell products in the EU through my UK company. This is because with the current post-Brexit trade deals the movement of goods between the UK and the EU is subject to customs formalities just like any other third country. Customs declarations must be filled and fees paid. Goods and even documents now get stuck at the border. This way, when trading with the EU after Brexit, one can lose most clients and European partners. Nobody will take the risk of supply chain disruption or even just waiting for the goods for a month or even longer.
Amare: But if I produce in the UK, my products are subject to zero custom duties.
Nexus-Europe GmbH: The zero tariff and zero quota provisions apply to goods that comply with the appropriate rules of origin. The rules are complex and vary depending on the product. Typically it must be shown that over 50% of the components of the goods originate in the UK or the EU. Since you use components manufactured mainly in Asia, you cannot benefit from the UK-EU preferential tariffs.
Sophia: In my production I use components mainly of UK origin. But the costs of providing proof of preferential origin outweigh all benefits!
Amare: Are there any rational solutions? The EU was my main market!
Trade with the EU after Brexit easily– 3 Nexus Brexit Solutions
Nexus-Europe GmbH: Don’t panic! To avoid losses when exporting to the EU after Brexit and even benefit from the situation use one of our 3 Nexus Brexit Solutions. We will now tell you about them. With our solutions you:
get full independence from authorised representatives and importers
maintain direct business with clients and partners in the EU and get new ones
can fully avoid the necessity of dealing with EU customs.
Amare: How can one avoid dependency on authorised representatives and importers?
Nexus-Europe GmbH: Good question! In this case, Nexus opens your own company in Germany for you. This company will act as an authorised representative when you import not only from the UK but also from any non-EU country. This allows you to realise the post-Brexit trade with end customers without endless expenditure on external authorised representatives and importers.
Sophia: Yes, but I am not a citizen or even a resident of an EU country. Can I register and run a company myself, without hiring a German managing director?
Nexus-Europe GmbH: We will advise you on selecting the legal forms where non-EU residents can become shareholders as well as managing directors. You save a minimum of 30 000 euro per year alone from it and keep full control in your own hands. In most cases we can open a company even without your having to come to Germany. During the Covid crisis we have successfully opened companies for British entrepreneurs even under lockdown.
Sophia: But how does it help the situation with customs?
Nexus offers 3 solutions:
1. For experienced business people in the trade field who want to work fully independently.
2. For small or cautious businesses that want to trade with the EU after Brexit but aren’t ready to rent a warehouse and hire local staff.
3. For British and other non-EU producers who want to save hundreds of thousands of euro on customs clearance and fees.
1. Nexus Transfer Solution
Trading with the EU after Brexit as comfortably as before
Nexus-Europe GmbH: You, Ashish, are already familiar with customs procedures when delivering products from third countries to the EU. Because the UK is no longer an EU member and new post-Brexit trade deals are in place, you bypass the UK and will be importing products to Germany through your German company. This German company will be your authorised representative in the EU. After customs clearance you can sell your products not only in Germany, but in the whole EU.
This makes exporting to the EU after Brexit not only possible but as comfortable as before. If you are not willing to personally work in Germany, Nexus-Europe helps you hire local staff, find a warehouse, obtain the VAT and EORI numbers and interact with the tax adviser.
Ashish: Renting or especially buying my own warehouse is a big step.
2. Nexus Outsource Solution
Exporting to the EU after Brexit without local staff in the EU
Nexus-Europe GmbH: In this case we offer the Nexus Outsource Solution. We still register a company in Germany that will be acting as an authorized representative in the EU. Our partner will receive and store the goods for you in their warehouse. When you get an order from an EU customer, you give an instruction to dispatch the order from the warehouse to the customer. Your customer will get the goods in a few days, rather than waiting for weeks until they come from a third country. This gives you a tremendous advantage over your competitors who are sending the goods from outside of the EU every time an order is placed.
Ashish: Sounds great! I plan to sell the goods through Amazon, eBay or even my own e-shop. Speed is extremely important.
Nexus-Europe GmbH: Then, if you don’t have your own storage and local staff, our Nexus Outsource solution is even more crucial for post-Brexit e-commerce. According to EU rules, the customer has the right to return purchases made online within 14 days for a full refund. Can you imagine how many customers you will lose if the return must be made to outside the EU?
Ashish: Nobody will want to deal with that! Even if I pay for return shipping!
Nexus-Europe GmbH: No worries. The Nexus partner will take full care of the return: receive the returned items at their warehouse in Germany, take a photo to avoid fraud, scan all supporting documents and follow your instructions on how the return items must be handled. With this option, you can even run the business remotely and trade with the EU after Brexit without coming to Germany.
Amare: Such a solution could be an option for me. However I will still lose most of my profit on customs fees.
3. Nexus Produce Solution
Forget about customs clearance and fees!
Nexus-Europe GmbH: In your case Nexus-Europe GmbH provides you with the Nexus Produce Solution. Since in production of your goods in the UK you use components manufactured mainly outside the UK and the EU, your goods will most likely not comply with the rules of origin. Therefore you cannot benefit from the UK-EU preferential tariffs when trading with the EU.
But why deal with customs at all? To become independent of UK trade deals after Brexit, Nexus-Europe GmbH helps you launch a production facility in Germany. As a Project Management company we take care of the whole process: find ready-to-use premises or find land, obtain a building permit and build from scratch. As required for your project or order we select the necessary equipment or production line.
We obtain the necessary permits and help to get product certification. We find and recruit staff and third-party suppliers. Most importantly we consult you on how to get government support and bank loans. And after the launch of the business we can prepare PR campaigns with the involvement of key market players, press and other mass media. This all makes it possible for you to run your business without having to adapt to post-Brexit trade deals.
Amare: Right! The goods can be sold to the whole EU without the necessity of customs clearance. It will save me a lot of money on customs fees and dealing with customs formalities.
Nexus-Europe GmbH: Moreover you are benefitting from the reputation of German quality. According to a YouGov poll, products made in Germany have the best reputation with international consumers.
Amare: Can Nexus help with complex strategical projects?
Nexus-Europe GmbH: Certainly. We find and implement optimal strategical solutions for our clients because the key principle of our company is: strategy first, then action. We have a team of professionals. Some of them have worked alongside Nobel Prize laureates in economics. In addition to this, many years of cooperation with government organizations help us to realise even the boldest ideas.
Sophia: Why not produce in another EU country with cheaper labour costs?
Nexus-Europe GmbH: Following Brexit, a number of other countries are considering the opportunity to leave the EU. Just imagine: you opened a production facility, invested time and money and developed a business model. Then in a couple of years the country exits the EU. Do you think your EU partners and customers will be ready to make a long-term partnership with a new factory located in a country with a potential risk of quitting? After the whole of Europe has suffered from the bad experience of supply chain disruption during the Covid crisis even a slight risk of potential disruption will be avoided by most customers.
Sophia: Okay, I fully understand about the countries that occasionally talk about leaving the EU. But what about labour costs in Germany in comparison with other core EU countries?
Nexus-Europe GmbH: Germany having high labour costs is a myth. Labour costs in Germany are even lower than in other main EU countries. Moreover, in Germany there are many programmes to support businesses and employers even during crises. For example, during Covid-19, if the employee’s working hours are temporarily cut, the government compensates 60-80% of the net loss of pay.
Amare: This enables affected companies to keep their employees even in the event of lost orders! So they can keep doing business without interruption!
Nexus-Europe GmbH: The total sum of support for businesses in Germany during Covid-19 exceeded 900 billion euro.
Amare: What other country in the world supports its entrepreneurs like this?
Nexus-Europe GmbH: Because of our cooperation with government institutions in Germany over many years, we can assist you with participation in government programmes and incentives. Moreover, the Nexus team of experts has exceptional work experience with foreign entrepreneurs. We are eager to help you take advantage of Brexit and multiply your income in the EU market.
Let’s sum it up.
The Nexus Transfer Solution is optimal for those who have an experience of dealing with customs and want to have full independence when exporting to the EU after Brexit.
The Nexus Outsource Solution is optimal for those who don’t want to deal with customs, aren’t ready to rent a warehouse and hire local staff. It is especially beneficial for e-commerce business.
If you are a producer, then the Nexus Produce Solution is the one for you. It gives your business stability, new customers and once and for all relieves you of customs clearance and fees when trading with the EU after Brexit.
Of course the solutions can be combined. Do you have questions on how to trade with the EU after Brexit? Please contact us right now!
This document (and any information accessed through links in this document) is intended for general informational purposes only and is not a substitute for professional advice. The information is written with the greatest care. However, we cannot guarantee the accuracy of this information. We assume no liability for damages caused by errors in the texts. Each situation is unique and professional advice should always be obtained before taking or refraining from any action.