Thread by @DanielLambert29

We are now twelve months in with Brexit and some media outlets have been in contact to see if everything is as bad I said it would be. Here is my final thread on the reality of Brexit after 12 months and what’s coming in 2022. 1/19

Since Brexit started excise goods (Alcohol, Cigarettes, other taxed goods) have been subject to the full Brexit regulations and checks that 95% of all other goods have not had to worry about in 2021. 2/19

Therefore the wine industry is very aware of the problems that everyone else will face in just 8 days from now. Moreover it’s why we are nearly fully stocked going into January but had to start that process back in October. 3/19

It’s about to get a lot harder because HMRC requires all goods to be pre advised from January 1st. But what does that actually mean? It means that every import must have a U.K. entry number, this is where it gets complicated. 4/19

CHIEF (U.K. importation computer system (built in the 80s)) creates an ‘entry number’ for every declaration. Each declaration requires up to 56 pieces of information to validate. 5/19

To validate you need to know the senders address, Rex number, EORI number, Excise number, your EORI number, the cost of transportation, the weight, type of packaging, commodity code, type of declaration (CPC) and of course any tax payable. 6/19

Once you have all that information you then need to ensure your suppliers understand the rules, have done the right declarations to exit the EU, the goods get a MRN number & know the port of exit BEFORE the goods leave the country of origin. 7/19

If your suppliers and you have got all of that done correctly then both set of documents must be stuck to the actual pallet/consignment so that both EU and U.K. customs can check the documents are correct. 8/19

Finally if the goods are excise suspended and going to a bonded warehouse (as much wine does) you also need a U.K. ARC number which is created on a different system via HMRC Gateway under EMCS U.K. Another two registrations required right there. 9/19

So folks there you have it, from just one document (pre Brexit) the supplier would create, to several barriers to trade which many will have no idea about on both side of the channel despite this coming into force in 8 days. 10/19

So one year on with us doing all of the above where are the issues? The fact is the system is so complicated that we seldom have everything done correctly by the suppliers first time round, it normally takes two or three versions to get it right. 11/19

Transportation companies are now in the habit (rightly so) of not even collecting stock until all documents are correct. The average lead times have gone from 1 week to 8 and the worst we see from the EU is 12 weeks. 12/19

Now I run a wine company which is not perishable goods and if it gets delayed the product is still fine when it arrives. But for fruit and veg and all the other perishable goods I dread to think how companies will cope. 13/19

With any business who are not up to speed they simply will not cope and even when you do get it right your suppliers must also be on their A game too. A supply chain is only as strong as its weakest link. 14/19

We have seen over 2021 the paperwork we send is often removed by drivers (who don’t know its importance) and this can’t happen in 8 days. 15/19

To conclude I simply don’t see how such a steep learning curve for both suppliers and importers will go well, the wine industry as you will see from retailers shelves is barely coping after 12 months of Brexit. Gaps are plentiful. 16/19

The wine industry now works on three month lead times and more often than not this is not long enough. It’s even worse with American wines. Stock that collected in July still hasn’t arrived in my warehouse. So the issues are global. 17/19

Brexit simply isn’t working and those that have been dealing with the full version on excise goods can see the impending plane crash. I dearly hope I am wrong but thus far I have been correct on my factual analysis. 18/19

Despite the bleak situation I would like to finish on a positive. Even with all the barriers to trade this week 4 pallets from Spain did turn around from collection to delivery in just 7 days. This is the only delivery in 2021 to achieve this. #Brexit 19/19.