Brexit concerns continue for many
The 1st January 2022 heralded in full customs declaration for all imports from the EU and got off to the shakiest of starts when HMRC’s new IT system, the Goods Vehicle Movement Service (GVMS), crashed on day one and lorries stuck at the border for four days.
While HMRC were quick to restore the crashed GVMS system, the pressure on EU/UK supply chains is likely to intensify as volumes rise after the Christmas lull, with hauliers noting additional delays tied to Goods Movement Reference (GMR) production, which is required before trucks can enter the loading port.
Truck drivers have reported queues of up to eight hours trying to get through customs controls at the French port of Calais – causing delays in deliveries as firms struggle with the new rules which came into force at the start of January.
Although we were expecting ‘issues’ at the border, as businesses adjust to the new requirements. The new regulations, including the GMR generation, should not be too arduous for importers as the process remains the same; it’s mainly just the time frame which changed.
Our European operations continue to run smoothly, with full compliance from our haulier partners and freight volumes in line with our expectations for the start of the year.
Overall, in these early days, we’ve been impressed with how the ferry companies, carriers, border force, and Customs have been collaborating with our teams.
We have worked closely with customers and their European suppliers to ensure they were aware of new obligations under the border operating model, with many taking the precaution of stocking up where possible to alleviate any supply chain pressures at the start of the year.
The majority of firms in a MakeUK/PwC senior executive survey said Brexit had moderately or significantly hampered their business, with over half concerned about customs delays and new red tape.
Delays at customs, the additional costs from meeting separate regulatory regimes in the UK and the EU, and reduced access to migrant workers were among top concerns raised in the survey, while on a more positive note three-quarters of companies expected conditions in manufacturing to improve over the coming year.
However, most companies said they believed business conditions would improve, with about 73% believing that opportunities outweighed the risks, while in a separate survey of chief financial officers, a record 37% were planning on increasing capital investment in the next year, on new products, services, or markets.
We believe that importers should have no fear of customs delays, or new red tape hampering their supply chain operations.
We have a dedicated team of customs experts who support our customers through easement and regime changes and ensure that their EU/UK movements flow smoothly across the border, in full compliance with all controls.
Don’t hesitate to contact us to discuss your situation and to learn how we simplify customs compliance for businesses of all sizes.
