Easier to export to US than EU, says Chamber International
9 February 2021
Aftershocks in international trade remain after the end of the post-Brexit transition period but are being addressed, says Chamber International.
These include many border issues, especially in Eastern Europe where details of new post-Brexit trading arrangements have not filtered down to customs staff along with several European logistics companies joining the fast parcel carriers in reducing or suspending deliveries to the UK as a result of new customs processes says director, Tim Bailey (pictured below).
He says: “One of the most common concerns is being raised by businesses with an EU warehouse and distribution model in the UK when they realise that customs duties have to be paid again when goods are reexported to the EU.
“One way to address this is to apply to HMRC to become a Customs Warehouse and import goods under customs control. We’re assisting a number of businesses to obtain approval including a large, multi-million pound Yorkshire based clothing company. Firms need to carefully weigh up the benefits before committing to the set-up cost and time involved.”
As a total of 202,081 UK businesses need to complete customs declarations for the first time for EU exports, British Chambers of Commerce launched its new brokerage service ChamberCustoms, which is linked to most air and sea ports in the UK.
Tim Bailey says: “This is gathering momentum nationally and regionally, particularly with companies having to complete EU customs declarations for the first time. Our customs brokers have been busy submitting declarations for movements to and from the EU since the start of the new year”
Typical export difficulties that Chamber International is helping to address include a technology shipment from West Yorkshire held up due to specialist documentation drawn up in Italy rather than the UK and a North Yorkshire computer business facing increased costs.
Meanwhile, a West Yorkshire technology company has sought advice on new rules covering call outs for its engineers to Northern Ireland and The Republic and a West Yorkshire manufacturing company has had deliveries held up in France due to an incorrect commodity code and many businesses are struggling with documentation technicalities.
Tim Bailey adds: “By May 2020 trade volumes had dropped by 45 per cent due to the first lockdown. By August this was down just 27per cent and only 15 per cent by December. We expect it to remain at this level until Brexit difficulties ease and Covid-19 vaccinations increase and lockdown restrictions are eased.”
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