Tom Thornton, BREXIT Spokesperson for Irish International Freight Association, tackles a common misunderstanding associated with preparing for BREXIT, in whatever form it will take.
We hear this quite a lot and unfortunately it probably puts people off preparing. The reality of course is that within the Freight & Logistics sectors we do know what to prepare for.
As Ireland remains within the EU and the UK departs, then trade between the UK and Ireland will be subject to Customs Declarations. This applies whether it is a Norway Model, a Canada + model, a WTO model or an FTA.
So we know Declarations will be needed. We know the format of the Declaration. It is the same format as currently exists for trade with any country outside of the EU. The UCC (Customs Union Code) will apply to Declarations for trade with the UK and the Freight industry and Customs Brokers are completely familiar with the application of the UCC.
We know how to find Classifications for goods, how to access the EU TARIC database, we know how to calculate Valuations, we know how to apply rules of Origin. We know how to transmit the Declarations to Customs. We know the Software to use, file structures and communication structures. We know how to get the required permissions from the various Government Agencies which Customs represent.
We know about Customs facilitations like ACE, ACR and TSF. We know how to apply for them, what Guarantees are needed and the usefulness of AEO.
So there is a lot known. There are of course unknowns and these should not be underestimated. For example how many Declarations will be required? It is estimated that perhaps 19 million additional Declarations will be needed (rising from the present figure of 1.6 million per year) and an additional 25 million Safety and Security declarations. This is undoubtedly a substantial challenge. A significant part of this challenge will be to have sufficient human resources in place to cope with the workload that these declarations will present.
Indeed one of the greatest challenges of all is the uncertainty of the WHEN of BREXIT! This also encourages companies to defer their preparations. However we would again appeal to companies to not delay in preparing. Even taking the following simple 8 actions will assist:
1. Appoint a BREXIT Champion in your company
2. Obtain your EORI number
3. Get the EORI number of your Supplier/Customer in the UK
4. Ensure your Customer or Supplier in the UK is preparing for Customs Declarations
5. Check your HS code for goods you are shipping or receiving. You can get help with this from INTERTRADE IRELAND: https://intertradeireland.com/brexit/tariff-checker/
6. Make sure your supplier can produce an invoice prior to shipment
7. Check in case you may need a licence for Import or Export
8. Nominate a Forwarder or Broker to prepare Customs Declarations on your behalf.
For further information on BREXIT you may wish to examine the following resources areas:
https://www.iifa.ie/members/ (database of Freight Forwarders and Customs Brokers within Republic of Ireland)
To be cheesy: DON’T DELAY – START TODAY!!!
Tom Thornton - IIFA BREXIT Spokesperson
