Chamber documentation team steps up to help motor racing industry

The Chamber is helping out hundreds of British motor racing enthusiasts who are being hit by new rules caused by Brexit.

Now that the UK has finally left the European Union, anyone who travels abroad with a non-road registered vehicle to compete in motor racing events is facing the prospect of having to obtain expensive documentation to transport cars and equipment to events.

But the Chamber is at the forefront of efforts to help the racers - from Formula One to one-man bands - thanks to a partnership with UK motorsport body Motorsport UK.

Britain is home to many Formula One racing teams - and they face bills totalling millions of pounds to attend the nine races scheduled for this year in Europe, as part of their new season.

However, the rules will also hit teams with just one car, who will have to ensure that they apply for a temporary export document - or ATA Carnet - for every piece of equipment that they intend to transport to any European race event.

The cost of these documents includes an administration fee, but also a 'premium ', which is based on the value of whatever is being temporarily being exported.

The 'premium ' is either a refundable deposit of 40 per cent of the exported item 's value, or a (non-refundable) insurance fee to cover this cost, again based on its value.

This could be quite expensive, given the high value of even the most basic of racing cars.

A Formula One team is facing huge costs, given that their cars can be worth around £8 million each.

For Formula One, the costs involved in competing are astronomical all round - it is estimated that the top teams such as Mercedes, Red Bull and McLaren spend around £300 million each year on running their teams.

They need to transport 100 people and 60 tons of equipment between each race, and there are 23 of these in the 2021 season, including nine in Europe.

Eight of the main Formula One teams are based in Britain, and they are reckoned to spend around £6m each year transporting equipment and personnel to race meetings.

The costs involved are not so high for individuals and small teams competing in less prestigious events and competitions in Europe, but Brexit could still make it uneconomic for UK-based competitors to travel abroad.

The Chamber has already processed carnets for racing cars valued at £1m - under the new rules, the refundable deposit involved is £400,000. If the owner decided to down the insurance route instead, the cost would range from £1,836 for a two-month premium, to £4,512 for a year 's premium.

For the £8 million Formula One car, the deposit would be £3.2 million, the two-month premium would be £13,876, and the 12-month premium would work out at £34,752.

Motorsport UK - the governing body and membership organisation for motorsport in the UK - has recognised that there is a problem, and has joined forces with the Chamber to help its members continue to compete in Europe.

The organisation - which services a community that includes 30,000 competition licence holders - has secured a special deal with the Chamber that will enable their members to obtain carnets for a fixed admin fee of £240 + VAT, a substantial reduction on the normal fee of £330 + VAT. The carnets can be used to transport cars and equipment back and forth regularly for their duration.

Hugh Chambers, Motorsport UK chief execuitve, said: “Motorsport UK, as the national governing body of motorsport in the UK, are delighted to be working with the Greater Birmingham Chambers of Commerce as we navigate past the Brexit transition into the new relationship with the EU.

“There are significant changes ahead for our 60,000 community, many of whom regularly compete overseas or perhaps have that one annual pilgrimage to a preferred event.

“The new arrangements with the EU have added complexity and cost to what was previously taken for granted. However Birmingham Chambers have been enormously supportive in providing advice and minimising costs for our community and we look forward to growing our collaboration. ”

Chamber international director Mandy Haque said: “We 've already had loads of phone calls from people who take part in motor racing as a hobby, and they 've not had to pay anything before.

“Now they could be landed with bills ranging from £500 to thousands of pounds to carry on competing - but we are doing what we can to help them.

“We are looking forward to partnering with Motorsport UK and supporting all of their members in this coming year and beyond. ”

The Chamber is also set to assist other membership and trade organisations whose members now need to use carnets, including those where members are attending European exhibitions.