Businesses Must Prepare For Customs Changes - Chancellor
The Chancellor of the Duchy of Lancaster has released a letter urging businesses to prepare for customs changes as the end of the transition period is near.
In July, research from the Institute of Directors showed that only one in four companies are fully prepared for Britain's departure from the EU. The same research pointed out that Manufacturing firms, in particular, will most likely be unprepared for the transition period. Experts cite that the lack of clarity on rules and regulations, constant changes and uncertainty on deals pose as a challenge on this Brexit transition.
The Institute of Directors polled 1,000 company directors. Half of these respondents said they were unable to prepare for the changes because the details were unclear. A majority of the directors - 69% said that securing a trade deal was beneficial and important for their company. This, in comparison to crashing out of Europe on World Trade Organization terms. For the directors who consider the departure from EU rules as a positive move, seven in ten said a deal would be most important to the economy.
The IoD's position is that time for preparation is most essential, regardless of trade talk outcomes. They ask that a phased implementation be made.
Director-General of the IoD, Jonathan Geldart, opines:
"With so much going on, many directors feel that preparing for Brexit proper is like trying to hit a moving target. Jumping immediately into whatever comes next would be a nightmare for many businesses."
Chancellor of the Duchy of Lancaster urges businesses preparing for customs changes to contact their local chamber of commerce.
Michael Gove MP, Chancellor of the Duchy of Lancaster, has addressed all businesses moving goods between the United Kingdom and the European Union, and between Great Britain and Northern Ireland. In this letter, he urges the businesses to contact their local chamber of commerce for guidance.
The chancellor sets out in his letter how a business must prepare for the end of the transition period, citing that the coming change and a new trading relationship with the EU. The letter affirms the Government's newly launched campaign: Check, Change and Go.
He said: "I want to impress upon you the importance of using the next six-month period to prepare for leaving the customs union and for the application of the United Kingdom Global Tariff.
"If you have not done so already, now is the time to Check, Change and Go."
Perhaps in an answer to the concerns raised by the IoD, Mr Gove recommends eight steps for all businesses to take to ensure they are prepared. They are:
1. Speak to your local chamber of commerce, which is experienced in international trade and can help guide you
2. Register here for an Economic Operator Registration and Identification (EORI) number, which you need to import and export
3. Check the terms of your existing contracts with your customers and suppliers
4. Plan how your business will deal with customs declarations
5. Appoint a customs broker/intermediary to make customs declarations on your behalf
6. Check if customs guarantees and simplified procedures will be helpful for your business, and complete the application process
7. Identify the staff who can be trained on customs and apply for HMRC grant funding
8. Use the guidance available at the Government's UK transition page.
A copy of the letter is shared here.
