In a survey by the freight forwarders trade association, BIFA, 64% of respondents felt they would not be ready to undertake the additional Customs-related work that will be required from January 1st 2021.

Following a survey of its members, the British International Freight Association (BIFA) reports that a majority of respondents have significant reservations over whether they will have the capacity to handle the major changes to the UK’s trading relationship at the start of 2021.

“Metro on the other hand has been upgrading our capability to process Customs declarations digitally and has developed new software, incorporating machine learning to digitise documentation.”

In a general question on their understanding of the Government’s plans for the border after the end of the Transition period, more than half of the respondents said that they either had no knowledge, or what knowledge they do have needs improving.

In regards to the Border Operating Model, whilst 70% of respondents said they understand the Customs procedures required to import goods into the UK from the EU at the end of the Transition period; less than half said that was the case in regards to Safety and Security Declarations. This was also the case with respondents that are involved in the import of live animals, and/or products of animal origin; as well as fresh fruit and vegetables.

“Metro has develop a Brexit portal specifically to share Customs procedures, related information and solutions.”

The results were broadly similar for procedures to be followed for export movements from the UK to EU. Although 79% said they have no understanding of import procedures in individual EU Member States regarding export movements from the UK to EU.

“Metro has developed a single strategic partnership to offer pan-European Customs Brokerage, with representation in every country.”

More than half of the respondents said they had no familiarity with the Goods Vehicle Management System (GVMS), whilst more than two thirds said the same about the Smart Freight Service; and the Trader Support Service (which applies to businesses in Northern Ireland only).

“Metro’s Brexit Ready portal incorporates glossaries and guidance on Brexit regimes, processes and systems.”

Robert Keen, BIFA’s Director General (pictured) added: “In a similar survey conducted in May this year, 50% of respondents felt they would not have sufficient staff to undertake the additional Customs-related work that will be required from 1 January 2021. In the latest survey, that has increased to 64%.”

“Metro systems are integrated with HMRC’s Customs Handling of Import and Export Freight (CHIEF), which means we can clear goods anywhere in the UK digitally, which is critical, as an estimated additional 200 million Customs declarations will follow Brexit.”

BIFA was concerned to hear that over 50% of respondents said they have not received direct communication from government on EU exit or the end of the Transition Period, and of those that had, less than 40% found it clear and accurate.

Mr Keen added: “We hope that they will be willing to listen to the significant reservations that have been expressed by the companies that are on the front line in the management of the UK’s visible imports and exports, including 80% or more of customs entries, in regards to their preparedness for the end of the transition period.”

Metro’s ‘Brexit Ready’ web portal has been designed to prepare your business for the 1st January 2021 

The UK Internal Market Bill is a very provocative piece of legislation, proposed by the UK Government that, on paper at least, signifies the UK’s intent to leave the EU with no deal. The bill cleared its first hurdle in the House of Commons on Tuesday.

Here are the reasons why the UK Internal Market Bill is causing such a stir:

• It tears up the Northern Ireland protocol as agreed under the WA (Withdrawal Agreement)
• Under the terms of the WA there would be a requirement to complete customs declarations for goods moving between Northern Ireland and the mainland UK. This bill gives UK ministers the right to overrule or ignore this part of EU customs law
• It also refers to state aid (eg the financial support governments give to businesses – for goods related to Northern Ireland. This bill gives UK ministers power to interpret what that means, and not be governed by the case law of the European Court of Justice)
• On paper the UK is overriding EU law (The EU are stating that the UK are ‘breaking’ International law)

Short term effects:

• Boris Johnson has stated that,’ if there is no deal on the table by October 15th, then the UK walk away’ – outcome no deal. This posturing from the PM places a heavy emphasis on the above date.
• The EU have demanded talks with the UK to explain their intentions in regards to this legislation. Further, they are insistent that the UK withdraws these measures as they constitute a violation of International law.

Has the Prime Minister caused damage to the UK’s reputation on the world stage? Will the EU play hard-ball with the UK post-Brexit by imposing sanctions as a result? 

Only time will tell. This situation is worth a follow!

Elsewhere, Dominic Raab has found himself in the US, having to explain the UK’s latest position on Brexit, as senior US politicians are stating that there will be no US-UK Trade deal if the Good Friday Agreement in Northern Ireland was undermined.

Nancy Pelosi, the US Speaker of the House has said in no uncertain terms that, if the UK has violated International law, as claimed by the EU, then a Trade deal would not pass through the US congress.

I’m sure Mr. Raab will be at his most charming best! 

For further information on Metro’s brokerage services, please contact Grant Liddell or Chris Carlile who are leading our 2021 EU withdrawal Task Team.

Two-thirds of UK businesses have had their Brexit preparations disrupted by the Coronavirus pandemic, and only 25% are confident they will cope with the additional administration, according to a survey of supply chain managers by Descartes.

Two-thirds of large firms (with >1000 employees) are extremely concerned about delays in their supply chain impacting their business after Brexit, and less than 20% are prepared for a ‘no deal’ Brexit, while preparedness drops off a cliff, to just 3% of companies in the food and drink, healthcare and medical sectors.

Almost 75% are concerned about customs brokerage capacity post-Brexit, while 20% are concerned about customs declarations impacting their business post-Brexit.

Just over 50% think a UK-EU trade deal is unlikely to be achieved in 2020 and only 10% of supply chain managers claim to have total certainty regarding the impact of Brexit on their business.

Delays to the supply chain are the biggest concern regarding the impact of Brexit on cross border trade, with 66% of supply chain managers in healthcare concerned about supply chain delays, tariff payments (40%) and customs declarations (40%) are the next highest concerns.

The survey says that organisations and supply chain managers with existing experience of customs declarations are far more worried about Brexit than those who have yet to discover the complexity of customs processes. 

Significantly, with consumer behaviour having fundamentally changed during the COVID outbreak, this inexperience is likely to catch out many smaller sole traders who have moved to an e-commerce model during the pandemic.

Membership of the EU has masked the complexities of customs for many businesses, for 28 years, over which time international trade has grown and evolved significantly. 

Brexit will have vast implications for any company trading with the EU, and they need to act now to ensure the right processes and solutions are in place and ready to operate ahead of the 31st December deadline.

CLICK HERE to see a letter addressed to the Government by the logistics industry bodies in connection with concerns over the end of the Brexit transition period.

CLICK HERE TO VISIT OUR DEDICATED BREXIT PORTAL FOR EVERYTHING YOU NEED TO KNOW, TO GET INFORMED AND PREPARE YOUR BUSINESS FOR THE 1ST JANUARY.