Approaching the end of Week 3. This is what I'm seeing on the ground.
Everything is picking up. A number of companies had enough stock to last them through Jan.
They are now preparing to start importing/exporting for the first time
/1
Some of them are still asking very basic questions and do not understand what it means to be an importer/ exporter. Not to mention all the forms etc.
Some still struggling to find a customs broker or only now starting to look for one (!!!)
/2
No conversations with current hauliers, brokers re capacity, no conversations with suppliers/clients re division of responsibility.
Bit late for everything now.
/3
Origin continues to be a massive problem and the Percy Pig issue is causing a problem for almost every single company I've spoken to.
/4
I know the view from the EU was that this will not be amended/ clarified/ sorted anytime soon (h/t @pmdfoster ) but the sheer scale of the problem might mean that the UK Gov will need to look into it
/5
Jan was about border disruptions and hauliers.
Feb will be about companies starting to trade again (and possibly still border disruptions and hauliers)
TL:DR - this is far from over
/end
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Just been talking to someone about long term effects of Brexit and it got me thinking about all these industries that are at a standstill at the moment, in shock over the new red tape.
/1
While it’s true that many industries are at a standstill and are struggling to export now, that’s just the beginning.
/2
Border issues will eventually get sorted. IT systems will work (more or less) and we’ll get the hang of these new formalities.
And at that point, many companies will realise that the extra red tape and these extra costs are not going away.
/3
Short 🧵on my key point from today's webinar on rules of origin.
Great questions from 1.3k (🤯) ppl in the audience and always such a pleasure to listen to @MichaelGasiorek and @pwrighting share their expertise on trade and origin.
We hear so much about rules of origin but it's important to understand they are not just one thing - rather a set of requirements.
I always talk about them in terms of 3 different layers of origin requirements.
/2
Layer 1⃣ - product-specific rules.
You need to make sure your product meets rules for that particular product (based on your commodity code) under the specific trade agreement. There are different rules:
✅for different products
✅under each/most agreements.
/3
The new border procedures, including SPS formalities:
1⃣ cause delays both at the premises (before the goods move) and at the border
2⃣ are expensive
3⃣ can make the product unattractive to EU buyers - esp for perishable goods (you want your meat to be fresh)
/1
Customs processes are difficult enough but SPS ones are a pain. Read a couple of examples 👇 (h/t @vivamjm )
"The Eurotunnel needs to process 500 lorries an hour but only has the veterinary capacity for 150 an hour."
/2
I think most of the current "teething" problems are a direct result of the UK Gov CHOOSING NOT TO be clear about the new non-tariff barriers for the last 5 years.
These are niche issues but not that niche - it was a clear choice to pretend like they don't exist and focus on the sunny uplands.
/2
HMRC and DEFRA have done a fair job trying to communicate the upcoming changes in the second half of 2020 (perhaps the tone could have been more urgent).
But by then it was too late (plus everyone was pre-occupied with covid)
/3