Hello. I don't do this anymore but since the BTOM Brexit border checks are finally here I thought I'd post something.

1⃣ The rules changed in Jan 2021. This is when these checks should have been introduced

/1 2⃣ They were postponed five times as this country tried to avoid the consequences of its own decisions. The increased costs and burden are a direct result of the choices made between 2016 and 2020.

/2

A couple of thoughts on the Windsor Framework and the new solution for the GB/NI/ROI border.

/1 1. Details still need to be worked out

As expected, still a lot of work to be done. Whether it's non-steel TRQs, the new Trusted Trader scheme or a reimbursement system for goods that went via red lane but stayed in NI.

/1

I have to say the whole Dover response is a bit surprising.

Back in 2019 and 2020, we talked about how the lack of any extra space means that there is absolutely zero spare capacity in Dover.

/1 Meaning that if there is bad weather if there is an accident or more traffic than normal things will slow down considerably.

Remember these headlines? Nothing’s really changed. It’s always been a bottleneck.

/2
ft.com/content/d05498…

“Regulations are only as good as the ability to act on them”

A couple of interesting points here.

/1
politico.eu/article/alibab… 1⃣ According to a 2020 study two-thirds of the e-commerce products imported into the EU fails to meet EU safety laws.

2⃣ Part of the equation is that e-commerce has changed the way border checks need to be done. As trade is more “fragmented”, border checks are trickier.

/2

First stop today - Motis. Mostly an inbound Inland Border Facility with additional services such as some export processes and live animal checks. Great driver facilities too Port of Dover. Traffic buildup due to P&O ferries not operating.

Significant simplifications for buying "protective military equipment" in Poland.

A new law was introduced yesterday and will be in force until May 17.

/1

prawo.pl/prawo/ulatwien… Anyone can now purchase a bulletproof vest or a helmet and export it provided that they can demonstrate it's going to an end-user in Ukraine.

This also covers transit of such equipment

/2

If you’re planning on donating and sending goods to Ukraine, please read this 👇

I’ll try to keep this brief.

1 - The official guidance is if you can - donate money. 2- Check what's needed

According to Polish media, collection points receive tons of “stuff”. Some of it has to be thrown away as it’s too old, dirty etc. Remember that someone on the other end will need to process these goods, i.e. sort them.

This verdict is a very good reminder of how complex customs issues can be.

Customs valuation is one of the 3 core areas of customs. Together with classification and rules of origin.

A short 🧵

/1

https://twitter.com/tconnellyRTE/status/1501118420196245506

Customs value is basically the value of products you declare to Customs at import.

It matters as customs duties, import VAT and other taxes are calculated as a % of the customs value.

/2

My mailbox is full of companies asking whether there are any special easements for UK businesses wanting to send goods to Ukraine.

Unfortunately not - normal export or transit procedures need to be followed. Usual documentation needs to be provided.

/1 This morning HMRC issued a document encouraging companies to donate money instead of sending goods and providing contact numbers for the Export Support Service and Customs & International Trade Helpline

/2

Sigh... a couple of points on rules of origin

1) the requirement to show a declaration of origin at the point of entry was there already since 1 Jan 2021. Nothing has changed this year in that respect.

/1

cityam.com/rule-of-origin… There was an option to postpone a customs declaration for up to 6 months which also meant postponing claiming preferential origin.

There is now also a new requirement to HOLD a suppliers' declaration at the time of import. Only for companies that actually need one.

/2

The French Customs Authority has published their annual customs review 2021

/1
douane.gouv.fr/sites/default/… Check out page 5 if you're still wondering why border checks are needed.

Interesting to see how the numbers have increased compared to 2020.

/2

That would be my comment as well.

The term "trade deals" is now almost synonymous with free/regional trade agreements.

The problem is there are so many types of trade-related "deals".

/1

https://twitter.com/CoppetainPU/status/1494630884590424080

If the purpose is to inform, which I'm not entirely sure is the case here, then using the correct term helps.

A trade promotion deal and a bilateral FTA are two very different things.

/2

Indeed, interesting.

The key here seems to be that this is a long-term process.

Addressing some of the supply chains challenges resulting from the combined effects of Brexit and covid will take years. For example, training and upskilling.

/1

https://twitter.com/DavidHenigUK/status/1493576943291277312

Some of this will be market adjustments, some will require policy measures and targeted actions. But it's not something that can be "done" or "fixed" overnight.

/2

The question here is what information will need to be submitted on a declaration. We currently have the standard, full declaration (same template for the UK and the EU) and simplified declaration. There is also an option to simplify the simplified version further.

/1

https://twitter.com/Mij_Europe/status/1492127075041525763

Declarations are indeed a collection of information submitted. But it's not only about the number (the number of fields on a full decl vs simplified decl.

/2

Borders have so many functions. You have revenue collection and taxes, immigration, smuggling and crime prevention, consumer health and safety protection etc.

So much of trade policy is actually applied at the border (metaphorically speaking).

/1 It's up to every country to decide how it wants to approach this and how it wants to organise border formalities. Provided, of course, that it's done on MFN and NT basis - i.e. is non-discriminatory.

/2

Similar conclusions - the report is a fairly comprehensive list of things that happened since Brexit. But the relationship between cause and effect isn't always that clear and doesn't necessarily fall within the traditional definition of "benefits".

Let me explain

/1

https://twitter.com/chrisgreybrexit/status/1488153799399194624

Some of these things were possible because the UK left the EU. The UK-Australia deal is an example.

There is a separate discussion on what constitutes a good deal and whether doing deals quickly is a good idea but that's not relevant here.

/2

"One in three UK business owners fear their company won’t exist" that's surprisingly high.

Yes, 2021 was a challenging year in more ways than one but still.

/1

cityam.com/one-in-three-u… Of course, they've not seen any benefits cause the only change was the introduction of new trade barriers.

If we go back to the main economic benefits as advertised by the Government - freeports and new trade deals - these will take time. That's normal.

/2

NY Times article on the impact of Brexit on UK's speciality food importers. TL:DR it's getting difficult to import smaller quantities.

And it's just the beginning

/1

nytimes.com/2022/01/17/bus… Business owners in the article mention the changes that came into effect on 1 Jan - the requirement to submit a full customs declaration at the time of import and obligation to pre-notify imports of animal products

That was enough to make imports more difficult

/2

One of the issues, in my view, is that many companies, or at least their management, still see it as a one-off problem, something to solve.
/1

cityam.com/growing-brexit… Instead of investing in developing their teams, in-house skills and capacity they often look for a consultant to "fix it".

/2

Great article.

But worth remembering there is no such thing as a frictionless trade deal. Frost didn't "fail to secure it", it just wasn't on the menu.

/1

theguardian.com/business/2021/… Particularly on SPS (health certificates etc), frictionless was not an option. Any easements would have come at a price that the UK considered too great to pay.

Unfortunately, that's the reality of being a 3rd country.

/2

From HMRC on the need for businesses to prepare for upcoming changes.

HMRC has been urging companies to prepare and take note of these changes.

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gov.uk/government/new… There are changes that will affect hauliers and freight forwarders. But there are also changes that affect businesses directly.

/2