BREXIT 2018 Aug
The UK is planning for a hard exit and has started releasing technical notes in preparation to the British public. They are hoping to enter a transition period extending to 2020, during which we predict little change will occur.
The U.K.’s current plan for BREXIT includes 7000 officials and 300 extra border officers. There are contingency plans for another 9000 British officials and 1000 more border officials. Thus ensuring there is no shortage of resources at the UK border.
However, it is unlikely that France, Germany, Spain or Belgium would be incentivised to increase their resources and their overhead costs, to support Britain and BREXIT.
How then do present and future exporters into the EU plan? What issues can we expect?
- We should expect substantial delays at ports of entry into the EU and into the UK. These will not only affect the cost of doing business, cash flow, and supply chains: JIT will be replaced by its bastard cousin, the OSWO* system of stock management.
- When shipments eventually reach the overworked and overwhelmed EU border officials, we can expect greater scrutiny and less leeway. If documentation is not quite right we can expect to be sent to the back of the queue.
- In the event of being sent to the back, we should expect the same consistent treatment: without respite, until documentation is correct and all of the “I’s” dotted and “T’s” are crossed.
- Four – check the Directives and Regulations with which you seek compliance, (See our book “CE Marking – From Novice to Expert” for help using the EUROPA.EU web site.)
Ensure that Authorised Representatives meet the individual requirements for each Directive and each Regulation. Get this wrong and you may need to spend precious time finding and contracting an authorised representative resident within the EU. Shipments help in Quarantine, by EU Officials may cost upwards of $1,000 per day
Some UK sources recommend using a Customs Broker to manage the UK and EU Import/Export Documentation Process. These will include Import Documentation for products entering the UK and also the EU, and Export Documentation for products leaving the UK for the EU or overseas. (This will occur when the Free Movement of goods between the UK and the EU is eventually lost.)
UK Small and Medium-sized Enterprises fear a cliff edge exit. There are fears of shortages of food and medicine. The UK plans to minimise dislocation in specific areas; for instance, by recognising medical devices approved for the EU market.
These are our current reviews on BREXIT and what it will mean to exporters to the EU – as we discover more we will keep you informed.
August 30th Report by Bloomberg: “The U.K. and the European Union still say in public they want a Brexit deal wrapped up in the next seven weeks. Behind the scenes, though, senior officials on both sides admit this is unlikely.”
*OSWO otherwise known as Oh Shit We’re Out