Brexit: what are the next steps for international traders?

CHANGES TO GB-NI TRADE

There will shortly be a number of changes to the processes governing NI-GB trade as two "grace periods" come to an end. Under one of the grace periods which ends on 1 April 2021, customs declarations are not required for the majority of parcels received by NI residents or businesses. The only exception are parcels sent business to business that contain goods exceeding £135 in value.

Seamus Leheny, Northern Ireland Policy Manager at Logistics UK, said: “While the grace period is a workable solution in the short term, with the logistics sector moving tens of thousands of parcels a day into NI, securing an extension to this followed by an agreement to implement simplified procedures and will be essential if significant disruption caused by the increased administration is to be avoided, especially in relation to business to consumer parcels.”

Another grace period that expires on 1 April 2021 is the exemption of most products of plant and animal origin from Export Health Certificates (EHC) for entry into NI from GB (subject to conditions). However, since 22 February 2021, those transporting certain meat products, including sausages, have had to comply with EHCs and are trading on a qualifying grace period of six months for continued access to the NI market, after which the future for these goods from GB to NI is uncertain. Both of these grace periods apply to authorised traders – such as supermarkets – and their trusted suppliers.

“The logistics industry and government must work together as an urgent priority throughout the next six months to provide a longer-term solution,” Leheny said, “such as a possible trusted trader scheme for retailers and food suppliers.”  

INTRODUCING EXTRA UK IMPORT REQUIREMENTS

Although the EU started applying its full set of import requirements on 1 January 2021 to goods entering its territory, the UK government opted for a three-stage approach which introduces UK import requirements on incoming trade gradually. Since the end of the transition period, a light-touch approach has been in force, with customs easements and risk-based sanitary and phytosanitary formalities focusing on a selection of high-risk products.

Traders can currently decide to defer their full import declaration up to six months after the point of importation, provided they keep their own records. This will no longer be possible from 1 July 2021, however, requiring traders to update their own processes.

“Logistics UK advises all those involved with the import of goods from the EU to check the GOV.UK website,” Sarah Laouadi, European and International Policy Manager at Logistics UK, said: , “to see how it will impact their operations and if required, they should seek to appoint a customs agent in plenty of time.”

For EU to UK shipments, safety and security declarations will be required from 1 July 2021. They are already required to move goods between the UK and the EU. As one declaration is needed for each consignment, a single truck load may require a vast number of statements.   

Many goods will also face product-specific requirements, such as checks on a significant number of agri-food products and the provision of specific sanitary and phytosanitary documentation. Until the end of March, export health certificates are only required for live animals and a reasonably small number of priority plant products. Certification will be extended to all regulated plants and products of animal origin on 1 April, placing the onus on EU-based traders to secure the services of official vets for their exports to the UK.

“Dialogue between UK businesses and their EU-based supply chain partners is and will remain essential,” Laouadi said. “July will mark the beginning of a new phase with physical sanitary and phytosanitary checks on UK-inbound trade being conducted at border control posts (BCPs) rather than at destination. Once again, cross-channel communication will be crucial to meet the BCP pre-notification requirements.”  

AVIATION MARKET ACCESS

With the UK aviation industry regulated at international, bilateral and national levels, the end of the Brexit transition period also marked a significant moment for air movements between the UK and EU and these changes pose a challenge to future efficient air cargo operations. While planes continue to fly between the UK and EU member states, Brexit has changed the way the fundamental traffic rights that provide air access are granted: the ‘freedoms of the air.’

While the first four freedoms of the air were confirmed in the UK-EU free trade deal, the fifth freedom was not; instead, it is being negotiated in bilateral arrangements between the UK and individual member states. The fifth freedom allows a plane travelling from one country to stop off in a second country, unload cargo and then travel onward to a third country.

“Logistics UK is urging government to ensure air cargo operations continue to have access to all EU states under the fifth freedom rights,” said Laouadi, “and while temporary arrangements work in the short term, we are calling for a long term, sustainable approach to accessing later freedoms for air cargo.”  

As the end of the grace periods and the outlined temporary measures approaches, Laouadi believes that it is imperative that the logistics industry, government and other stakeholders work together to ensure sustainable solutions are in place for the challenges the logistics sector will face. 

“All members of the supply chain must communicate, work together and engage with government guidance,” she said, “to keep goods moving as seamlessly as possible as businesses adjusts to post-Brexit operations.” 

*www.logistics.org.uk/brexit

Published On: 25/02/2021 17:00:14

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