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The introduction of post-Brexit customs checks could cost traders up to £9bn a year, according to a think-tank report.
The Institute for Government said in its study that the introduction of customs declarations will affect up to 180,000 traders who now operate only within the EU. Those traders face making customs declarations for the first time after Brexit, and the Government estimates an expected extra 200 million a year.
Those declarations cost £20 to £45 each, the institute said, putting the total additional cost at £4bn to £9bn
The Government wants to leave the EU customs union when it leaves the bloc in March 2019 – and it wants to negotiate a new relationship that will ensure trade is as free of friction as possible.It has called for a transition period where customs arrangements will remain largely the same as they are now. But its commitment to leave the customs union has raised concerns that customs checks will be introduced at UK borders, increasing costs for businesses.
“The scale and cost of change for many traders could be significant. Government must engage with them in detail about changes, understanding their requirements and giving them as much time to adapt as possible,” the report said.
The IfG said preparing the border for Brexit is a “huge task with a hard deadline”, and will require the Government to “orchestrate change across more than 30 government departments and public bodies, as well as over 100 local authority organisations”.
“The Government must make sure everyone from port operators to freight companies and local authorities are ready, It should also work with EU partners to ensure issues at European ports do not cause significant disruption to supply chains”
For the full story http://news.sky.com/story/post-brexit-customs-checks-could-cost-4bn-a-year-report-11030768
As the Government publishes its proposal for a customs union deal, the EU Parliament’s Brexit coordinator calls it “fantasy”.
The UK has already said it will leave the customs union – the EU’s tariff-free trading area – after Brexit, and businesses have been calling for clarity on what the replacement system will involve.
David Davis MP estimates the transition period will be roughly two years – with the deadline of the next General Election in 2022.
The document sets out two broad approaches to a possible customs deal.
One option aims to continue some existing arrangements the UK has with the EU, using technology to make custom requirements “as frictionless as possible”.
The second option is without precedent, which would involve the UK mirroring the EU’s requirements for imports where the final destination is the EU.
The Government also says it has contingency plans in place to deal with the possibility of no agreement.
But there are increasing concerns that all the Government’s possible options mean businesses will be hit with extra red tape and increased costs.
The British Irish Chamber of Commerce responded saying it was cautious about the feasibility of some proposals being put forward in London on simplifying new trade barriers with Europe.
The recognition of the need for an interim period to allow for the adoption of new systems and infrastructures will be welcomed by businesses who have long warned of the dangers of leaving the Customs Union without such a transition phase
It is important that this phase is as close to the status quo as possible with minimum disruption caused by tariff and non-tariff barriers.
The story continues
This morning, UK exporters and importers are all waking thinking what does the election result mean for Brexit, and the potential impact on my business. After four weeks of campaigning for the General Election, vital time has been lost to prepare for the crucial Brexit negotiations. It’s crucial that that the new government focuses its efforts on supporting the logistics sector to ensure that business can continue to trade efficiently with our EU customers and suppliers.
Exiting the customs union threatens the imposition of tariffs, border checks, Customs declarations and huge amounts of bureaucracy for the significant number of UK businesses that trade in the EU, and the logistics organisations that deliver it for them. Negotiating a replacement trade deal that avoids these would require a strong and convincing mandate, which the Election has now put into doubt. The importance of painless arrangements for UK trade with the EU, particularly with Ireland, means that the decision to leave the customs union should be reviewed as a matter of urgency, and other ways of achieving a positive outcome for Brexit should now be considered.
Approximately 44% of the UK’s exports in goods and services were transported to the EU in 2016, valued at £240 billion out of £550 billion of the country’s total exports.
One thing is for sure the government should prioritise the success of the nation’s trading arrangements now that the election is concluded.
Information taken from FTA – Freight Transport Association.
RTS will be sponsoring a Charity bike ride again this year for Mcdonalds RHM OXFORD BIKE RIDE 2017.
On the 3rd June 2017, a team from I & A Restaurants and members of the wider McDonald’s family will be setting off on their 3rd annual 300+ mile bike ride from the Ronald McDonald House in Oxford to a Ronald McDonald Houses in Holland, which is situated in Oxford’s twin city of Leiden.
They are joining together to raise money for the Ronald McDonald House in Oxford, an independent charity providing free ‘home away from home’ accommodation for families with sick children being treated at the John Radcliffe Hospital. The house enables parents and siblings to stay close to a child whilst they are in hospital and maintain a degree of normal family life.
For the start of next season, RTS are proud to announce they will officially be sponsoring the under 11’s football team Bleakhill Rovers Rangers for the 2017/18 season who play in the Warrington junior football league.
Photos of the team will be following in the coming months and we wish them all the success for this coming season.
Recent roadside inspections of light commercial vehicles (LCVs) carried out by the French authorities in the Greater Paris region earlier this month have revealed widespread breaches of legislation governing the sector.
Over a six-hour period, a total of 89 vehicles with a maximum payload of 3.5 tonnes were stopped and checked. Of these, 73 were found to be breaking the law – 47 for offences related to unfair competition, and 22 to overloading. 30 of the vehicles were foreign-registered.
The operation, which targeted nine ‘strategic’ locations around the French capital, was conducted within the framework of an 11-week campaign by the European Commission to monitor cabotage – in particular, the activities of LCVs.
Highway-specific offences led to on-the-spot fines totalling almost €5,000.
We would like to remind all our customers to not overload any vehicles, if you are unsure of any legal maximum weights for any vehicles please speak to your representative at Retail Transport Services.
We thank you for all the support this year and wish you a Merry Christmas and a Happy New Year from all of us at RTS.
A new toll for trucks and buses in Austria will include a surcharge for noise and harmful emissions.
As of January 2017, the truck and bus toll system in Austria will be rearranged. Instead of the previous four-stages bonus-malus system in line with the Euro emission classes, in future there will be only two basic kilometre rates (bonus for tariff group A – Euro VI and tariff group B – Euro 0-V and EEV), with additional external costs for noise and air pollution for the first time.
The tariff will in future be composed as follows: basic rate for infrastructure per kilometer depending on the tariff group (as previously differentiated by the number of axles), plus external costs for traffic-based noise and air pollution (by emission class and number of axles).
There has been lots of speculation of a cross channel pricing review and what it will mean to the UK and cost of transport.
With the vote for Brexit it’s likely to have significant effects on transport pricing over the coming months. We have already seen significant swings in the exchange rate that will impact GBP paying customers and it is at a level that is affecting the competitiveness of some product lines in and out of the UK. Fuel prices have also been gently rising in the last quarter, adding to haulier costs, particularly those filling up in the UK. Add to this the legality of French government proposals that foreign carriers operating in or through France must meet minimum wage levels, and there is plenty to consider.
Sterling paying customers may make UK exports more competitive but the outcome from the Brexit vote is almost certainly going to cause a rise in transport prices for GBP-paying customers. A 14% drop in the exchange rate since this time last year will drive up prices, which are mostly Euro-based due to the high volume of continental carriers on UK routes. With upward pressure due to the large drop in prices early in the year and the trend in fuel, it will mean little opportunity for the market to absorb such increases.
Euro paying customers may avoid the exchange rate turmoil, but will be affected by other factors. The slight rise in fuel over the last quarter is likely to push up prices and there will be some rebalancing of prices after the significant falls in the first quarter. The French government proposals on driver wage guarantees for movements within France is likely to specifically add pressure to movements in and out of this market. Some eastern European carriers are now choosing to stay away from France until there is clarity over what is enforceable under EU law as this is seen as a protectionist measure by some markets. Their absence will affect capacity and, therefore, mean upward price pressure.
We will have to wait and see if things settle down, but it’s looking like increases for all involved in this industry.
We have been informed of new information with regards to the strike action taking place next week on Monday 05.09.16.
A road block will be in force on Monday 05.09.16 at 07:00hrs on the A16 the main access road to and from the Port of Calais.
With the road block in place with will also affect access to the Port of Dunkirk and Eurotunnel Services, at present it is impossible to know how long the road blockage will take place.
Theses disruptions may create a delay in the UK and Europe with channel crossing we will of course keep you fully informed once more information becomes available.