Brexit: UK as a Third County have a new customs regime [and it has consequences for trading too]

The United Kingdom government unleashed the case studies for Border Operating Model for Controlled Goods. Meaning all sort of goods that is going from one trading block to another one. One type of goods going from one customs union to another. Now that from today… the United Kingdom is separated from the European Union. There is whole new levels of red-tape.

The leaflet called ‘ The GB/EU Border – Case Studies – The Border with the European Union’ made by the Border and Protocol Delivery Group. This came out yesterday on the 31st December 2020 and would be valid from 1st January 2021. The government little to no time to prepare the various of industries, exporters or importers of the new factors. Neither party could be prepared for this. As companies on both sides of the Channel couldn’t be prepared for all of this.

Either industry will have their needed paperwork. As the ones importing/exporting have to ensure that the hauliers, exporter and importer are all working together to secure the whole process.

The main deal now is that the ones doing these sort of businesses are:

GB EORI number

EU EORI number (if you are conducting any EU customs processes)

Customs declarations for both imports and exports

UK and EU safety and security declarations

Rules of Origin (the FTA confirms that no tariffs or quotas will apply on goods that qualify)

Sanitary and phytosanitary controls

International convention requirements – such as those under the Common Transit Convention (CTC)

If that sounds easy… it is not. The new system is very hectic and a new bureaucracy to follow. The ones moving goods and transporting it. They have a new world to live and abide by. The expenses of this additional steps will be put on the consumer and the citizens themselves. There will also be less trading between the parties. As the ones who can avoid these steps and trade within the European Union will do so as well. While the ones who has too. Got to sweeten the deals to become viable. Especially trading from the UK into EU. The ones from EU to UK will be more pricey, as the hauliers and importers needs bigger margins to cover the costs of importing.

For instance before the Whiskey has left Scotland and gotten to Brussels it got 12 steps to get there. Where all the various of entities along the way needs the right paperwork to get processed to be allowed to enter and do the initial trade of the whiskey itself. Not only does the EU importer needs to have the right documentation and secure the right paperwork. So does the trader within the UK. These both needs to certify and secure the documentation. So, that the transporter and freight Company is secured. Also ensure that process is righteous before a carrier oversees the discharge from the UK market into the EU. This is an transaction where both ports of entry have to be signed off. That means the port of departure and entry needs to verified before importer of Scotch Whiskey can get its order in Brussels. This here will make it more costly and a hassle to import it.

If the Brexiteers and the ones supporting the enterprise promised less red-tape. This whole case study leaflet proves them otherwise. Every single industry and exporters has much more hassle and paperwork to fix. The same the ones importing from Europe. This will all be stressing and cause delay of goods transferred between the parties in question.

It is just a matter of time before the Brexiteers feels this. Especially, the ones who promised seemingly no consequences what so ever for leaving the EU. Peace.

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