Brexit was implemented on January 1. From that moment on, the European Union put the United Kingdom on the third country listing. With regard to Customs, this means that England, Scotland and Wales will receive the same treatment as any of the other countries outside the European Union. Thus, trade and freight transport will suffer significant repercussions.
The entry into force of Brexit directly affects the following companies:
- Companies that sell or provide their services in the UK.
- Companies that buy goods or receive services from the UK.
- Companies that transport goods across the UK.
It also carries different tax and customs consequences:
- When importing or exporting goods, Customs declarations need to be lodged.
- Data (regarding safety and security) needs to be provided.
- Special certificates will be required and must be lodged for certain goods. Additional procedures must also be carried out for products that are subject to excise duties.
- Rules regarding the different applicable VAT must be complied with.
Brexit and Logistics
The United Kingdom communicated its intention to leave the EU on March 29, 2017. From that day on, the negotiations to establish the conditions for its departure generated great uncertainty (especially within the logistics sector—which is one of the most affected by Brexit due to the fact that the creation of a customs office will affect transport costs and timing.)
During this negotiation time, different scenarios have been considered. Companies in the logistics sector have been forced to be ready for all kinds of situations, such as a possible “hard Brexit”.
These companies also wanted to be prepared so that trade remained as fluid as possible, regardless of the final decision. Their main objective was to mitigate risks either through alternative routes or by investing in equipment and facilities that allow them to offer an integrated and incident-free service.
Brexit: How Does It Affect Road Transport?
Finally, on December 24, a regulated and consensual agreement between the European Union and the United Kingdom was announced. It articulates the commercial relations between both territories. Since January 1, the movement of goods is subject to customs formalities, as well as border inspection controls. But how does Brexit really affect road transport?
As regards road transport (both within and outside the United Kingdom), the following requirements must be taken into account:
- The new bureaucratic procedures and customs and border controls must be complied with.
- Drivers must have a Kent Permit Access (KAP) to circulate through the English Channel—whether they are travelling by boat, train or through the Eurotunnel. They must carry this special permit whether they are carrying goods into the country or leaving without them.
The Brexit agreement has not set quotas or limits on freight transport. It does not affect the number of trucks or the amount of goods that can cross the English Channel. Thus, the main problem comes from the new bureaucratic procedures that must be followed.
The UK Government has been forced to delay the introduction of post-Brexit import controls for six months. Therefore SPS controls are delayed for all agri-food products from the EU. The 30 new border posts (BCPs) are still under construction and cannot perform their functions.
The United Kingdom has also delayed most of the import controls established until January 1, 2022. The reason for this is that the arrival of imported products on time is not guaranteed and the UK wants to avoid shortages in supermarkets. Thus, these processes will start the following year.
If you want to be prepared, at Noatum Logistics we would love to help you. With our consultancy service, your company will be able to face this new reality successfully. In addition, we will take care of all the procedures derived from Brexit. Download ‘Noatum Logistics Brexit Guide‘. You will be able to know all the details about the import and export of goods between the United Kingdom and the European Union.