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Policy & Compliance


Planning for BREXIT


This article aims to allow the reader to start considering what areas to focus on when planning for Brexit – despite the lack of clarity surrounding the nature of the post-Brexit arrangements


Members have asked the BIFA Secretariat for guidance on how to prepare for Brexit. The lack of certainty about the outcome of the Brexit negotiations and our Members’ divergent business models makes it very difficult to give such advice. It should be remembered that currently only the UK’s membership of both the Customs Union and Single Market allows the free movement of goods without the need for a customs declaration. It is almost certain that there will be significant change, but


the timeframes and extent of these changes are difficult to establish accurately at this point in time. The purpose of this article is to point out certain key points to Members, which we anticipate will allow them to consider the impact of Brexit and how to plan their response. The UK’s negotiating position lacks clarity, and there still


seems to be a lack of understanding as to what is achievable. For instance, it is said that the UK will leave the Customs Union and Single Market. Then, the UK tries to seek a special arrangement by which we try to replicate many of the advantages the Single Market by branding it as a Facilitative Customs Arrangement, whilst simultaneously trying to avoid the obligations of the former. It is clear that some areas and activities will be impacted to a


greater extent than others, for instance Members in Northern Ireland and Kent, facing the most significant changes, have been the most vocal and concerned. On the business front, roadfreight operators and customs clearance agents have been the most concerned, whilst seafreight agents in the North of England have been largely ambivalent. There will clearly be winners and losers from Brexit and


business will have to adapt. BIFA’s role has been to ensure that its Members’ voices have been heard, and some individuals from Member companies have been very active lobbying on


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– some of the impacts


behalf of the sector. It is clear that business is very reluctant to implement any


changes that involve it in considerable cost or are difficult to reverse, particularly relative to increasing staff levels.


Contingency planning From listening to businesses, it is clear that manufacturers, service providers and importers and exporters are formulating and implementing certain plans. These include: • Stockpiling essential supplies for public services and manufacturing companies,


• Lengthening delivery lead-in times, • Announcing earlier annual factory closures in March/April 2019 rather than in July/August for maintenance to minimise disruption,


• Considering the impact of certain key changes, two of which in a ‘No Deal’ scenario would be the re-introduction of frontier customs declarations and permits for commercial goods vehicles to move between the UK and EU.


December 2018


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