Business News
being hit by new rules caused by Brexit. Now that the UK has finally left
the European Union, anyone who travels abroad with a non-road registered vehicle to compete in motor racing events is facing the prospect of having to obtain expensive documentation to transport cars and equipment to events. But the Chamber is at the
forefront of efforts to help the racers – from Formula One to one- man bands - thanks to a partnership with UK motorsport body Motorsport UK. Britain is home to many Formula
One racing teams – and they face bills totalling millions of pounds to attend the nine races scheduled for this year in Europe, as part of their new season. However, the rules will also hit
teams with just one car, who will have to ensure that they apply for a temporary export document – or ATA Carnet – for every piece of equipment that they intend to transport to any European race event. The cost of these documents
includes an administration fee, but also a ‘premium’, which is based on the value of whatever is being temporarily being exported. The ‘premium’ is either a
refundable deposit of 40 per cent of the exported item’s value, or a (non-refundable) insurance fee to cover this cost, again based on its value. This could be quite expensive,
given the high value of even the most basic of racing cars.
Racing ahead: Documents problems eased
‘The Chamber is at the forefront of efforts to help the racers thanks to a partnership with UK motorsport body Motorsport UK’
A Formula One team is facing
huge costs, given that their cars can be worth around £8 million each. For Formula One, the costs
involved in competing are astronomical all round – it is estimated that the top teams such as Mercedes, Red Bull and McLaren spend around £300m each year on running their teams.
They need to transport 100
people and 60 tons of equipment between each race, and there are 23 of these in the 2021 season, including nine in Europe. Eight of the main Formula One
teams are based in Britain, and they are reckoned to spend around £6m each year transporting equipment and personnel to race meetings.
The costs involved are not so
high for individuals and small teams competing in less prestigious events and competitions in Europe, but Brexit could still make it uneconomic for UK-based competitors to travel abroad. The Chamber has already
processed carnets for racing cars valued at £1m – under the new rules, the refundable deposit involved is £400,000. If the owner decided to down the insurance route instead, the cost would range from £1,836 for a two-month premium, to £4,512 for a year’s premium. For the £8m Formula One car,
the deposit would be £3.2 million, the two-month premium would be £13,876, and the 12-month premium would work out at £34,752. Motorsport UK – the governing
body and membership organisation for motorsport in the UK – has recognised that there is a problem, and has joined forces with the Chamber to help its members continue to compete in Europe. The organisation – which
Water tight: Correct forms essential
6 CHAMBERLINK February 2021
services a community that includes 30,000 competition licence holders – has secured a special deal with the Chamber that will enable their members to obtain carnets for a fixed admin fee of £240 + VAT, a substantial reduction on the normal fee of £330 + VAT.
Chamber’s link with motorsport T
By Philip Parkin
he Chamber is helping out hundreds of British motor racing enthusiasts who are
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