The changes to the shipping industry brought about by Brexit are coming ever closer, yet still, many people seem uncertain of how to approach business in this changing climate.
Many companies feel they have been given little guidance regarding how to approach international business and shipping post-Brexit, and there appears to still be much confusion across the industry.
Here, we’ve outlined some of the changes that will be taking place as a result of Brexit, and discussed some practical steps your business can take to ensure the transition process is as smooth as possible.
What Are Some Areas Of Concern?
Container Shipping
According to WTAGroup.com, if the UK becomes politically isolated due to its decision to leave the EU, this may lead to a deficit of direct vessel calls. Although mainline vessels are unlikely to be affected, this could mean that some shippers may need to employ feeder services to transport their goods.
This argument, however, is subject to a lot of speculation.
For example, Drewry Maritime Research believes that container ships will continue to call at UK ports unaffected, and the UK Chamber Of Shipping has said it has a feeling of ‘optimism for a post-Brexit world’, while the British International Freight Association says that it does not foresee any change in the container market for months or even years.
In short, despite what may happen in future, nothing has changed for now.
Customs Checks And Border Control
A more realistic concern about shipping inefficiency is the likelihood of excessive checks of transported goods.
With increased documentation required under Brexit laws, there is a good chance that shipping to and from the EU will become a more complicated and drawn-out process. This may lead to problems with mislabelling of goods and incorrect documentation, which could delay stock transportation across many industries.
Unfortunately, it looks unlikely that the checks will ease, with one politician commenting that the hard border was what was ‘voted for’, and that delays and increased documentation were simply an expected part of losing EU membership.
Some even speculate that difficulties with trade and shipping may be politically weaponised against the UK, though there has been little evidence so far to suggest that this will be the case.
Imports And Exports
A) Changes To Protocol
The most important step in getting ready for Brexit is getting your business an EORI number. This can be obtained through the gov.uk website .
B) Exports
The main change to protocols is for businesses that ship to Europe, but not the rest of the world.
However, if your business currently exports outside Europe, all you need to do now is use the same process with your EU exports that you do for your other exports.
Customs declarations will also need to be made – either internally by the company, through their freight forwarder, or via a customs agent.
Depending on your specific exports, you may also need to look into obtaining the appropriate license.
For instance, if you export biological materials (e.g. animals, plants, food, earth/compost samples etc.), diamonds, or sanctioned items, you will need to attain your license before January 2022 in order to ship goods after the new year.
C) Imports
The licensing restrictions also apply for imported goods, and if you are importing biological materials or drugs, chemicals, and waste, you will be required to pay an inspection fee.
Just as with exports, the customs declaration process can be undertaken by the business themselves, or outsourced to a freight and shipping specialist .
Unlike controlled items, if you are importing standard goods there is some leeway in terms of avoiding the ‘red-tape’, as between January 1st and June 30th 2021, businesses can simply make an entry in their declarant’s records.
Additionally, imports from the EU are now subject to entry summary declarations, and must receive authorisation prior to shipping.
Key Takeaways
In short, here are some immediate changes you can make in order to ensure that your business navigates the Brexit transition period as smoothly as possible:
- Hire a customs broker or freight forwarder to help you with the import and export process
- Ensure you have your EORI number
- Collect your necessary materials for making a supplementary declaration
- Apply for any licenses you will require in 2022 and beyond