Report highlights main post-Brexit trading struggles

A new report highlighting some of the areas in which businesses are struggling to get to grips with post-Brexit trading arrangements has been released today by Greater Birmingham Chambers of Commerce.

The end of the transition period on 31 December signalled a number of significant changes to the way UK firms trade with the EU.

And the new Chamber report highlights some of the key areas that have affected firms during these early stages, including:

• Lack of capacity within the customs intermediary section to handle the increased volume of documentation required
• Complexity of rules of origin and knowing whether the goods imported from/exported to the EU qualify for preferential tariff rates
• Impact of double duty rates on businesses that import from countries outside the EU and re-export to the EU
• UK firms having to take on additional costs and responsibilities for shipping goods to and from the EU
• Businesses based in the EU switching from using UK suppliers to EU suppliers to avoid increased bureaucracy
• New requirements for bringing in skilled workers from the EU

While some of these issues are said to be short-term teething problems, the Chamber says others will require intervention from Government, through additional support or further negotiation with the EU.

The Chamber has called for the following measures:

• Allocate long-term funding to the Customs Grant Scheme to build up capacity within the customs intermediary sector
• Support firms in adapting to the new trading arrangements with the EU through the introduction of a temporary SME 'Brexit ' tax credit until 2022-23
• Delay the imposition of additional Sanitary and Phytosanitary (SPS) checks (from April) and full customs checks (from July) on imports into the UK.
• The UK to negotiate with the EU around expanding the list of permitted activities (eg. musicians) that qualify for visa-free travel

The report also features case studies from businesses, outlining their experiences and the challenges they have faced in adapting to the new trading rules.

Click here to access the report and find out more about how firms are being impacted by Brexit at this early stage.

Dan Clarke, policy manager at the GBCC, said: “With the announcement of a deal so late in the day, businesses were given very little time to adapt to some of the new requirements such as rules of origin which are complex and challenging even for those experienced in matters of international trade.

“Most businesses trading with the EU have had no prior experience of what is required in terms of importing and exporting goods. Many have turned to the advice on the government website which is not the easiest for businesses to navigate and there have been instances where firms have contacted government helplines with specific queries only to be referred back to the same guidance they found confusing in the first place.

“Businesses moving goods between the UK and the EU are now being subject to new paperwork requirements and customs processes.

“The additional bureaucracy has resulted in higher costs for businesses and increased the administrative burden at a time when they are also dealing with the disruption caused by the global pandemic.

“Firms are being hit by additional surcharges as a result of both Brexit and Covid-19 with delays at the border a common occurrence.

“Some of the issues businesses are facing will dissipate or ease over time as they get up to speed with the new requirements.

“Others will require intervention and further support from government. The recent announcement of new government grants for SMEs is welcomed by the Chamber but we would like to see more long-term support introduced for the businesses that are most affected.

“Exporters in particular have struggled with full border controls in place since the 1 January. On the other hand, border controls on imports are being introduced in stages and we would therefore call upon the government to delay the forthcoming changes to import controls, set to be introduced in April and July this year, in order to give businesses more time to adjust. ”

Mandy Haque, international director at the Chamber, said: “The international department is on hand to support businesses in adapting to the post-Brexit environment and we can provide the various types of documentation required.

“We have a plethora of training courses available to help with upskilling the workforce in all areas of customs procedures and various other relevant topics that affect international trade. We also have a range of international advisers that can support you on your export or import journey.

“I would encourage businesses to check out the support on offer and get in touch for further information. ”

The GBCC is keen to hear from businesses about how they are being affected by the new trading arrangements.

Share your experiences by emailing [email protected]

Click here to find out more about the UK government 's SME Brexit Support Fund.