At the heart of this entire mess is one thing and one thing only:
How do you communicate the scale of the new barriers to trade that are going to be introduced when for political reasons you are obliged to spin it as liberalisation?
It's not that the UK Gov didn't realise what was coming.
HMRC, DEFRA and other departments know these 3rd country rules inside out. They've got experts of their own in customs, SPS and everything else.
/2
These Departments were well aware of requirements such as RoOs or health certificates.
But for some reason, whether it was lack of communication, deliberate decision or something else, that knowledge did not translate into a clear message from the UK Gov.
/3
On the contrary, we've repeatedly heard senior politicians say things that made trade expert's skin crawl.
Promises that were obviously impossible to fulfil.
/4
Now, I don't know what the relationship between Departments such as HMRC/DEFRA and no 10 was like but it's clear that information was available.
But there was another side to this - the need to "get Brexit done", to deliver. And that should not be underestimated.
/5
Delivering Brexit required momentum and spin (which is an inherent part of politics).
In a way I can understand why the Gov didn't feel like it was the right time for all the necessary caveats:
/6
"We will have a tariff and quota-free deal"*
*But you'll have to jump through hoops to use it. You should see the amount of extra paperwork you'll need for any agri products. And don't even get us started on the Irish Sea border cause that one will blow your mind.
/7
And yet, while understandable, this approach was incredibly short-sighted.
It was always going to lead to exactly where we are now: disappointment. Mismanaged expectations.
A dissonance between what has been promised and reality.
/8
Brexit needed to be sold as a liberalisation of UK trade from the EU regulation, opening to the world and an opportunity to turbo-charge trade with other partners.
With the hope that the mountain of new red tape with our closest trading partner will go unnoticed, I guess
/9
But the reality is that even if there are tangible benefits to be had, they will take time to materialise. While the cost of red tape is here today.
And I'd say that gap is how Brexit will end up being perceived.
/10
By the time we join the CPTPP or sign a deal with the US businesses in the UK will know exactly how much the "tariff-free quota-free" deal with no new non-tariff barriers has cost them.
/end
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Keep getting asked what are the chances HMRC will find out if you use an incorrect commodity code or declare preferential origin when you can't substantiate it.
And it usually makes me think of this TikTok
/1
More importantly, though, I'm not entirely sure companies understand how important a "good compliance record" is in the long run.
/2
If you look at the UK Trader Scheme, or other simplification etc a good compliance record is always a requirement.
/3
1⃣ Companies will experience the consequences of the new formalities differently: for some things are working well(ish), others are no longer able to trade and their entire business model has collapsed.
/2
It's a spectrum - where you are on that spectrum depends on your supply chain, industry etc.
/3
The option to defer customs declarations for 6 months has been extended until 2022.
IMPORTANT - for goods imported until now declarations will still be due in July. But e.g. declarations for goods imported in July can be submitted in Jan 2022
Was tempted to ignore this. First of all not sure how I feel about Gov posting "ad features". I come from a country where we had a lot of that under the previous regime (and the current one) and not sure I would recommend it.
I love how one of the examples talks about how easy it was to import into the UK (all you need is an EORI and changes to invoices) when UK controls have not yet been introduced. Yes, of course, there were not delays!
Let's touch base in July
/2
Also, the article, like the Gov Brexit campaign, fails to mention rules of origin. And if these companies are not affected by rules of origin (solely import EU made goods for the UK market - excluding NI) these are exceptions.
It's normal export, import procedures. We have them too. So do other countries. When we export to these other markets where growth comes from (SIC) they will still need to be met. Paperwork will still be needed.
Every international cross-border transaction involves a tone of paperwork as you need to make sure you meet all of the requirements at the country of import (as well as some in your own country).
/2
It's not the EU being unreasonable. It's like expecting the US to drop all of their regulatory requirements for us cause you know, we have that special relationship... Not going to happen.
/3
If you're still confused about what's going on with the fishing industry, or food and drink sector in general and way it's all so important there were three Select Committee hearings this Thu worth watching
/1
First stop, the Scottish Parliament. A really important session.
TL:DR - if nothing is done, some of these businesses won't exist in a few months.
Next up, the Scottish Affairs Committee session on Fisheries and Scotland. The second session of the day with @scotfoodjames who I really enjoy listening to.