Dr Anna Jerzewska Profile picture
Founder https://t.co/wIhJEwjphH Customs and trade consulting @ITCnews @britishchambers. Associate fellow @UK_TPO Did trade before Brexit
LittleGravitas 🇪🇺 💙 #FBPE, #FBPA, #FBPR Profile picture Chris🌟 #FBPPR #RejoinEU #FBPE💙 Profile picture Bill Kruse Profile picture George 🇪🇺🤘💙#FBPE #FBPA #FBPPR Profile picture apollos01 Profile picture 6 added to My Authors
10 Jun
Both the UK and the EU have said that they would like to see a pragmatic solution to the SPS border checks issue in NI.

But it seems to me that they interpret "pragmatic" differently.

/1
For the UK it seems to be all about flexibility and finding a solution that's proportionate to the risk.

There is a bit of a "let's just get on with it" attitude and frustration with the EU's insistence on sticking to pre-defined terms and rules.

/2
The UK seems to struggle with the fact that the EU is not necessarily willing to go beyond existing frameworks and solutions.

/3
Read 6 tweets
9 Jun
There were always only 2 places to carry out SPS checks or any other formalities.

EU's suggestion that checks can take place between ROI and the rest of the EU shows how serious the EU is about protecting its market.

/1

Indeed ROI would be "paying the price" for ensuring there is no border between north and south.

I'm not sure what the tangible impact would be on trade between ROI/EU but any costs and delays would now be for the EU MS to absorb. Significant transfer of responsibility here.

/2
And difficult to imagine this being introduced without any further consequences for the UK as it would normalise UK's unwillingness to implement the Protocol. A document the UK:
✅negotiated,
✅signed and
✅promoted domestically as a massive success.

/3


.
Read 5 tweets
8 Jun
Turns out the supplementary customs declarations due this month (from this month onwards) are also a problem for the customs industry. Risk of a backlog.

/1 Image
Traders unprepared and often unaware of the obligations.

Brokers lack capacity, often don't communicate with traders due to lack of time. Or they wrongly assume that traders know what's required.

/2


theloadstar.com/threat-to-uk-c…
You need special authorisation to be able to submit these supplementary declarations and not every broker has one. The application process is complex.

/3
Read 6 tweets
7 Jun
Clear as day.

The UK sees the Protocol as a "huge compromise" and was expecting the EU to reciprocate.

The EU expected the UK to follow through on its commitments - logical consequences of this agreement.

/1
For example, the UK decided to apply the EU customs legislation, the UCC, in NI.

As a result, customs formalities outlined in the UCC apply to goods entering NI even from GB.

Simples!

/2
Seems like the UK was under the impression that the compromise it made was so big the EU won't possibly ask it to go through with it...

/3
Read 4 tweets
5 Jun
So I have a feeling many companies are in for a rude awakening this month - the first round of supplementary customs declarations for companies importing from the EU

/1
Thanks to the UK Gov's easements there was an option to defer customs declarations for the first 6 months and submit the bare minimum of data at the time of import (usually done by the carrier, logistics provider)

/2
This was to be followed by a full, supplementary declaration up to 175 days later.

Which, you guessed it, is this month.

/3
Read 10 tweets
4 Jun
Solving the NI border was always going to be technically challenging and politically sensitive.

Instead of working on these issues in advance, the UK and the EU signed a Protocol that was a high-level legal framework only.

/1
Some of the practicalities were to be solved by the Joint Committee.

Here again - a patch-up job at best while it was becoming increasingly clear that the two sides have a different vision of how it should work

/2
The UK's Command Paper was a clear sign that the UK's view on its obligations differed from that of the EU.

Were these differences addressed at the time? No, of course not.

/3
Read 7 tweets
2 Jun
Great article on inventory management (just in time) and the global pandemic - it's more interesting than you think.

JIT, global supply chains, the shipping crisis and what companies should do next. Are we going to see more supply chains resilience?
/1


nytimes.com/2021/06/01/bus…
While I have often said that I don't believe the pandemic will significantly shift supply chains (which are formed as a response to costs, availability, taxes and a number of other factors) I was thinking it's likely to impact the approach to inventory management.

/2
The authors are equally sceptical about "supply chain resilience" but go even further when it comes to assessing the likelihood of impact on the type of inventory management - expanding storage space and increasing your inventory costs money.

/3 Image
Read 5 tweets
1 Jun
Interesting points by @CoppetainPU on WTO transparency (catching up on my reading)

Does transparency help or hinder trade negotiations, formation of trade policy etc?

/1

tradebetablog.wordpress.com/2021/04/26/wto…
While this focuses on the WTO, obviously parallels can be drawn between the WTO transparency debate, the wider transparency in trade debate and the recent discussions around the UK's trade strategy (FTA talks).

/2
I think when it comes to transparency in trade a question that's more important than "should we?" is "how to?".

At the WTO, in the UK and everywhere else.

/3
Read 4 tweets
28 May
Interesting ongoing🧵on preference utilisation and the TCA.

A few quick thoughts

Utilisation rates are never 100%. That’s normal. However, the question is why are companies not using the TCA.

/1
Two possible reasons. Companies are not using preferential tariffs (0%) because

1⃣ they can’t cause they don’t meet rules of origin (e.g. re-sale of goods imported from elsewhere; or

2⃣ they don’t know how to

/2
Not much you can do about 1⃣. Supply chains adjust over time. Perhaps some of these companies can gradually switch to different suppliers.

/3
Read 8 tweets
26 May
Comments from Alexander and Chip worth reading 👇

Yes, we did have proper public consultations on the FTAs with Australia, New Zealand, the US and CPTPP back in July - October 2018.

/1
But I also remember where we were in the Brexit debate around the same time and I think the potential impact, scope and trade-offs related to FTAs might not have been fully understood.

/2
To be fair, I recently had an opportunity to ask a few companies about their interest in and "wish list" for these FTAs (not a representative sample) and the interest and level of engagement was really low.

/3
Read 5 tweets
20 May
Great conversation just now with @GrahamZebedee UK’s Chief Negotiator to the CPTPP and @Liam_Sm_Y_th Director of Trade Facilitation at the @britishchambers

One more point I wanted to mention.

/1
We talked about overlapping agreements - bilaterals vs the CPTPP.
@Liam_Sm_Y_th made a good point - that it's the traders that bring these agreements to life.

So...

/2
Combining these two points - with the overlapping trade agreements it's going to be even more crucial to provide UK companies with a good source of reliable information on market access conditions and requirements under all existing deals.

/3
Read 6 tweets
20 May
Excellent point from @DmitryOpines on the need for a greater period of reflection and debate before rushing into trade agreements (on @SkyNews)

Trade policy goals/ objectives on the domestic and international levels need to be consistent and aligned!

/1
Dmitry linked it nicely to the environment, agriculture and sustainability.

You can't expect a trade deal to deliver on certain promises if you're not backing it up with domestic policies that are aligned with these promises/objectives.

/2
The need for more analysis and reflection on what future FTAs are supposed to deliver (in a wider context) was also highlighted by @EmilyThornberry, @DavidHenigUK and most of Trade Twitter.

/3
Read 5 tweets
10 May
This story shows a profound misunderstanding of what free ports do.

These provisions are standard.

/1
This is not a fiasco, this is how freeports work.

It's normal NOT to be able to combine production in a free port and using trade agreements.

/2

It's the other way round - allowing the use of preferential tariffs for goods from free ports would have to be specially agreed.

/3
Read 5 tweets
7 May
Important info for all the SMEs wishing to use the HMRC customs grant.

So many companies ask me for a quote (needed to submit the application) for help with “learning how to submit customs declarations”.

/1
There are two elements to learn – how to collect customs info (commodity code, origin, value, CPC etc) and how to then enter it into CHIEF/CDS.

These are two separate sets of skills - normally done by different entities: one by the company and one by the broker.

/2
Both are incredibly important. Both can lead to non-compliance.

The grant is 2k.

You can either get a bespoke service where the advisers work only with you or a group course.

/3
Read 10 tweets
4 May
Missed it last week.

More evidence of the consequences of introducing new friction - completely foreseeable and understandable.

/1
Trade between the UK and the EU is of course still very much possible and if you meet origin requirements also tariff-free.

But the change simply makes it more difficult, more expensive and less competitive.

/2
So if you have a choice... you're likely to look elsewhere.

One point to mention, there is no "re-opening of the talks". That's not how trade deals work.

/3


bbc.com/news/uk-scotla…
Read 9 tweets
29 Apr
This is a truly historic day - I disagree with David (and @pmdfoster). And that doesn't happen often!

Customs and trade facilitation chapters in FTAs are quite generic. The actual, tangible cooperation and facilitation often occur informally, through a bilateral dialogue.
/1
for me, it’s not a question of how often the Customs Committee meets but the conversations that take place on a completely different level – customs administration to customs administration, officer to officer.

/2
There are two completely different levels here:

1⃣ customs, SPS and border formalities and requirements

2⃣ day-to-day operational issues

/3
Read 12 tweets
25 Apr
Take it from someone who spends part of the time working on export promotion strategies in various countries around the world that “getting more of them to export” is not as easy as it sounds.

/1
Having an FTA in place is step one. And it doesn’t mean very much without supporting policies. I wonder if (I hope) the Gov is well aware of this.

/2
In order to achieve any returns on this investment (negotiating and FTA) further, far less “sexy”, policies are required: i.e. around awareness, guidance, access to financing etc.

/3
Read 5 tweets
19 Apr
How to combine a customs union and bilateral trade deals?

A question widely discussed a few years back in the context of Brexit but one that's much bigger than that.

A couple of thoughts on that based on @_AnabelG's superb blog for @PIIE.

/1
piie.com/blogs/trade-an…
In principle CU members are not meant to sign their own FTAs but as @_AnabelG points out few of the existing CUs are perfect.

Many CUs are partial and some are a hybrid between a CU and an FTA – e.g. include rules of origin.

/2
As a reminder: CU members have a common external tariff applied to all 3rd parties.

As a result, they can eliminate tariffs and other quantitative restrictions amongst themselves. Customs formalities and checks are still in place.

/3
Read 12 tweets
24 Mar
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?

/1
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
Read 11 tweets
22 Mar
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
Read 5 tweets
22 Mar
If you don't work in trade and have not been speaking to companies - read this🧵

Couple of really important points here:

/1
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
Read 8 tweets