Brexit and Shipping to and from the EU

Exporting to & importing from the EU has changed significantly

As of 1st January 2021 rules and regulations covering the import and export of freight and cargo from the UK to the EU underwent significant transformation as the UK formally left the European Union.

These changes are of the utmost importance to any individual or business planning to, or in the process of, trading with Europe.

Despite a deal being agreed at the last minute, Brexit is increasingly revealing itself to have resulted in far-reaching and significant changes to import/export procedures which are, difficult, time-consuming and expensive for British business to adhere to.

Brexit and shipping

Brexit Has Resulted in Huge Changes for UK Import & Export Businesses

- Do you know what documents are now required following Brexit?

- Are you aware of the changes to regulations effective following Brexit?

- Have you made a calculation of the additional costs you will now face?

- Do you need freight experts to advise you on how to deal with Brexit changes?

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freight forwarding after Brexit

 

In this article you can read about;

 

Using A Freight Forwarder Service

What Brexit Means for Exports

Are British Business Ready?

Air Cargo & Brexit

Border Control & Customs After Brexit

Complimentary Brexit Shipping Consultation


Using A Freight Forwarder

For those businesses employing the services of a professional freight forwarder there will be minimal additional work as this will be completed, as usual, by your freight forwarder.

For businesses and individuals organising their own cargo transport it is vitally important that they familiarise themselves with the new requirements and start preparing now, if they haven’t done so already.


What Brexit Means for UK Exports

As part of the EU, the UK was part of a customs and VAT alignment that made sending goods to and from Britain to Europe extremely easy.

The arrangement virtually eliminated customs delays and excessive paperwork when moving goods, removing barriers to trade across the EU.

It also meant that there were no customs duties to pay and that goods were able to travel through another EU country en route to their final destination in the same frictionless way.

Following Brexit this ‘frictionless’ movement of goods has ceased and customs documents are now required to transport goods to and from EU territories.

Every EU nation has specific regulations for this that UK businesses need to understand and adhere to if they are to continue trading with EU customers.

British businessand brexit

UK Government Advice: Use A Freight Forwarder

UK Business Brexit

Following Brexit customs and other duties are payable on goods brought into the UK from Europe. Similarly your EU customers have to settle customs charges after receiving goods from you.

Due to the complexity of dealing with multiple territories with differing rules and regulations it is the UK government’s advice that importers and exporters should use the expertise of professional freight forwarders to help them negotiate the many pitfalls inherent in post-Brexit trade with the EU.

The alternative for businesses is to understand complex customs regulations for each country and learn and utilise new computer systems, which for a lot of smaller businesses is simply not viable.

Using professional freight forwarding services takes away a lot of the pressure on businesses to adjust as these companies provide fully done-for-you services meaning that businesses do not have to divert valuable resources to deal with the new regulations.

Robert Keen, director general of BIFA, the trade organisation representing many of the UK’s freight forwarders, notes;

…businesses trading with the EU that have not had to worry about the free circulations of goods between the UK and EU will need to seriously consider partnering with a freight forwarder that is experienced in complying with the customs and excise rules for trade moving to and from the UK and countries that are not in the EU.   Those rules cover all manner of things including, but not limited to, import and export declarations and licences, revised terms and conditions of service, VAT and duties, plus entry and exit declarations.   It is in the legal and customs arenas that businesses will probably see the most impact when moving their freight internationally, and that is where freight forwarders can help.   They should concentrate on their own core business and let their freight forwarder provide the services that they need to move freight between the UK and EU.Robert Keen, Director General, BIFA

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Air Cargo & Brexit

Air cargo to and from the EU is also subject to the same requirements as is cargo from the rest of the world following Brexit.

The knock on effects of this will almost certainly affect businesses not directly responsible for air transport as additional paperwork and delays cause issues down the supply chain.

One way to mitigate potential delays is for businesses to apply for TSP - Transitional Simplified Procedures - which enable businesses importing to the UK to speed up the delivery by deferring a full import customs declaration until a later date.

This will allow cargo to pass through UK customs more quickly, avoiding delays and backlogs.

air cargo and Brexit

Border Control and Customs After Brexit

shipping by air after brexit

Whilst there are a multitude of changes as a result of Brexit the crux of the issue of moving cargo from one port to another comes down to passing through border control and customs as quickly as possible.

Delays cost money and make everything more expensive as well as causing logistical problems down-chain, which eventually impacts individuals and businesses in multiple ways as goods do not arrive as and when they should.

The ability to gain rapid clearance of your cargo through border controls and customs is vital to the timely delivery of your cargo and being able to mitigate against unnecessary or random stops and checks is a key part of this.

The ability to do this will depend on access to a vast bank of knowledge that most businesses will not have access to.

This is exactly why the government is advising businesses to use the service of freight forwarding professionals to help them navigate the choppy waters of post-Brexit trade.


Complimentary Shipping Consultation

Reporting in The Independent highlighted Lord Agnew’s contention that British business has its “head in the sand” over Brexit and that 80% of businesses were not ready for Brexit.

This is hardly surprising given that the UK is still locked in an exhausting battle with Coronavirus and its effects on economic activity, but even more relevant is that fact that with negotiations only wrapping up with a loose deal in December 2020 there is no clear guidance on how to navigate the new requirements.

If you have questions or concerns about shipping cargo in the post-Brexit world, or just want to some clear advice about how to help your business deal with the new rules then simply complete the form below and we will arrange a complimentary, no-obligation telephone consultation to answer all your questions and give you a clear route to dealing with business following Brexit.

Request A Complimentary Brexit Shipping Consultation

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