The Future of Trade and Customs, vol. 2
The Future of Trade and Customs
With Rickard Ydrenäs, the CEO and Founder of Ydrenas Communications, Flavia Munteanu, the EU engagement lead at HMRC, Anneli Wengelin, a Special Adviser at the Swedish Ministry of Foreign Affairs, Peter Jacobsson, the Sales and Consulting Managing Director at ECUS, and Michiel van Veen, the Managing Director for UPS Nordics
Rickard Ydrenäs, Ydrenäs Communications
Rickard Ydrenäs has published 65 episodes of Brexitpodden and 63 episodes of Tullpodden to extensively cover the UK’s departure from the EU.
The UK’s trade deals with Canada and Japan were ambitious but the EEA would have been more so. The nation has now lost access to the Single Market and Customs Union. However, it retains zero tariffs despite the reduced ease of moving goods.
Since Brexit there have been:
- Continued trade of goods
- Border delays
- Increased charges
- Drop in volume of exports (RHA claim a fall of up to 68%)
- 21% of Swedish companies have faced Brexit-related problems
Politically, the likelihood of Scottish Independence has risen and peace on the island of Ireland has been put at risk.
Flavia Munteanu, HMRC
Customs declarations are now required and the UK Government has introduced ‘Staged Controls’ to extend 6 months.
The UK also offers the ‘Common Transit Convention’ for goods
In July 2021 there will be an increase in the volume of paperwork as the UK gains full control
Guidance on VAT changes can be found on GOV.UK and all goods over £135 will be treated differently.
Rules of Origin:
- Traders need to classify their goods
- Look up the origin rule(s) in the UK-EU Trade Co-operation Agreement
- Check goods meet the requirements
- Sort out supply chain documentation
Special Procedures and Reliefs:
Anneli Wengelin, Swedish Ministry of Foreign Affairs
Brexit means that there will be increased costs, inspection rates and the trading environment may become more inconsistent.
One of the reasons the UK voted to leave the EU was due to the will to run its own legislation. UK public agencies and courts now hold jurisdiction which may be less predictable than EU standards- leading to a level of divergence.
Food items (perishable goods) require fast processing at the borders and this is not always happening.
There are still questions about how the UK will use its regulatory freedom.
Peter Jacobsson, Ecus
When Sweden joined the EU in 1995 there were similar overnight challenges on the border.
We recommend less established businesses use FCA or DAP. DDP is not a good strategy for Swedish businesses who are less established in the UK.
E-commerce businesses have found that they are particularly struggling with high costs for customers at the borders due to Brexit. This can be avoided by setting up a ‘limited in liability’ (Ltd.) company in the UK.
Michiel van Veen, of UPS
- Swedish exports to the UK were worth $9.44bn (5th largest market)
- UK imports to Sweden were worth $7.63bn
UPS are the world’s largest in-house customs brokerage firm in the world.
More paperwork around shipping will increase costs.
How to ship to the UK:
- Register for an EORI number
- Complete your commercial invoice correctly
- Include proof of the origin of goods
- Assign Harmonized System (HS) Codes to your goods
- Comply with the new UK Import VAT rules
- Check if your goods are subject to inspections at the border
- Consider requirements for return shipments, if applicable
- Consider using UPS Paperless™ Invoice
Northern Ireland trade will be treated like the EU.
Sustainable logistics is where UPS are now focusing.
Our thanks go to Rickard Ydrenäs, of Ydrenas Communications, Flavia Munteanu, of HMRC, Anneli Wengelin, of Swedish Ministry of Foreign Affairs, Peter Jacobsson, of ECUS, and Michiel van Veen, of UPS, for hosting this event with the BSCC
Click here to access a recording of this webinar.