Brexit 2.1 webinar to help traders and intermediaries through next phase

On 1 January 2021, the European union   (EU) and Great Britain (GB) embarked on a new era and trade relationship, and a host of new requirements took hold pursuant to the new Trade and Cooperation Agreement (TCA). While phase 1 required full declarations for exports from GB to the EU from 1 January 2021, two further phases were planned in GB’s approach to controlling imports from the EU.

The TCA did not avert the necessity for a huge volume of new documentation to facilitate trade. It has been widely reported that the introduction of the new processes has affected British exports to the EU, with estimates suggesting a reduction as high as 40% of historic trade volumes in January 2021.

Coupled with managing the economic impact of 1 January 2021 changes, traders and stakeholders in the supply chain also had one eye on the pending import controls due to come into force on 1 April and 1 July 2021. Many businesses invested in assessment, preparation and continued development of new infrastructure in readiness for the new import controls.

In response to business concerns and the COVID-19 pandemic, the UK government announced on 11 March 2021 that the introduction of additional import controls planned for 1 April and 1 July 2021 would be revised from the original plan. The full revised timetable can be found here.

The revisions mean that most import checks have been put back to 1 January 2022. The decision in part was a recognition of the scale and significance of the changes, and provides businesses with more time to develop infrastructure, train their people, develop robust management processes and define roles and responsibilities with supply chain partners.

While many businesses no doubt let out a sigh of relief at this development, the revised deadlines will soon be upon us, so what are the fundamentals the industry now needs to consider?

The changes implemented on 1 January 2021 have already resulted in a degree of disruption, caused in particular by a lack of awareness and accuracy when completing shipping documentation which has given rise to unwelcome delays at the border, leading to a risk of damage to cargo, particularly perishables.

The overriding message in view of the revised timetable is not to rest on your laurels but to act now to safeguard your business and supply chain against unnecessary disruption. Traders and their supply chain partners should already be engaged in considering the impact of the upcoming import controls. This activity, if not already completed, should now be escalated.

A starting point, through a review of the tariff classification of your products, would be to identify which cargoes you ship might be affected by the upcoming import controls. Thereafter, it would be prudent to review the Incoterms (international commercial terms) relevant to your current business model, verifying who has responsibility to make the relevant declarations and complete key documentation.

You should also identify which goods will require inspection at Border Control Posts (BCP) and consider which BCP will be used. Will your current routing need to be changed? Will this affect your current practices?

Once the review is complete and affected cargoes are identified, work closely with your supply chain partners and customs brokers to define responsibilities and prepare, with a focus on accuracy, for the upcoming changes. Traders should seek regular updates from freight partners to ensure continuity of performance and understand any pending challenges that might affect supply chain performance.

Traders and supply chain operators should develop contingency plans. Ensure that if delays do occur, there is a robust process to address, communicate and resolve the issue. If you currently rely on a ‘just in time’ supply chain model, it might be prudent to review whether this remains sustainable as we transition through this period.

Lloyd’s Loading List and the Institute of Export and International Trade will host a free to attend webinar, Brexit 2.1 – the next steps, on 30 March to further explain pending changes and their implications. Registration can be made here https://pages.maritimeintelligence.informa.com/brexit-next-steps