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BREXIT PREPAREDNESS


not yet tested or available for hauliers and traders to become familiarised with;


• As a consequence, some traders and hauliers will simply not be ready and some vehicles will need to stop at borders to complete or correct procedures, causing congestion and, therefore, heightened risks around ports.


Breakwell also highlights:


• Trucks driving towards the Kent ports of Dover and Folkestone without a Kent Access Permit will need to park further inland until the permit has been issued. You need to ensure trucks are parked in safe zones;


•


In anticipation of congestion around the short sea terminals at Calais, Dover and Folkestone, some traders are already recommending or even mandating use of longer ferry routes, for example across the North Sea or from/to ports in north west France. It’s important to note the ports of Calais and Dover and Eurotunnel have confirmed they are fully prepared and don’t expect delays. However, if you will be using alternative routings, you need to assess risks on these routes and plan a back-up in case your truck misses a booked ferry. Most of the longer ferry routes are only operated once or twice per day and there is extremely high demand for capacity, especially for driver accompanied services which may need to be booked at least 48 hours in advance;


• Due to the uncertainty surrounding the final EU/UK trade deal, exporters and importers may increase trade volumes before the end of 2020 to boost inventory levels, which could lead to a spike in demand for transport capacity and the risk of subcontracting pyramids, which have been known to be infiltrated by bogus transport companies;


• Carriers (hauliers) will be responsible for the Safety and Security declarations that will be necessary next year. You may need to implement contractual agreements covering the exchange of data and also liability in case of false or incomplete declarations that could result in demurrage and Customs penalties;


• Customs controls can result in higher levels of criminal activity, for example fraudulent declarations and smuggling.


Even so close to the deadline, so much is still undecided. More will obviously become clear in November and December, but four facts are already clear and should be in no doubt:


• Regardless of the final deal between the EU and UK, Customs controls will apply from 1 January 2021;


•


In addition to mandatory Customs declarations for all goods exported and imported, there will be other new procedures which shippers and traders need to be ready for;


• Due to the very late formulation of requirements, ongoing trade negotiations and no EU/UK road haulage agreement so far, some of the services and systems are


Don’t be misled by the status quo which has existed throughout 2020 to date. As part of the 12-month Withdrawal Agreement between the UK and EU, although the UK is no longer a member of the EU, it has continued to be subject to EU rules and remained a member of the single market and Customs union. Once this transition period ends at 23:00hrs UK time on 31 December 2020, Customs controls will apply to UK and EU trade for the first time since the single market was introduced in January 1993.


One of the drivers of the transition period was to provide time to initiate, develop and test systems and procedures to manage the predicted 400 million Customs entries per annum for the 43% of UK exports going to EU countries and the 51% of UK imports from the EU. An estimated 180,000 traders will be making Customs entries for the first time next year, so if you haven’t already given this sufficient priority, it is now going to be an immense challenge to employ and train staff, file the necessary applications and prepare for new practices, especially as some processes are still not ready or fully transparent.


You’ll find more details in the UK government’s Border Operating Model. Click here to download the publication.


If your company exports goods from the UK to EU, you’ll need to be prepared for a number of significant changes:


• You will need a GB EORI number to trade with the EU – click here for more information


• There will be changes to Incoterms which define how goods will move, who will pay the freight charges and transit insurance


• Commodity codes will apply for all goods moved – see more here


An estimated 180,000 traders will be making Customs entries for the first time next year, so if you haven’t already given this sufficient priority, it is now going to be an immense challenge to employ and train staff, file the necessary applications and prepare for new practices.


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