A survey of business leaders revealed that nearly one-third of British companies that import goods from the European Union are “not ready” at all to undergo comprehensive customs inspections after Brexit, which has raised concerns. Port congestion And the increasingly serious supply chain disruption.
From January 1, 2022, companies importing goods will no longer be able to take advantage of the temporary 6-month grace period to postpone customs declaration to HMRC and payment of any due duties. From that day on, they must do so immediately.
Among the leaders of the companies surveyed that import from the EU, three out of ten Institute of Directors (IoD) stated that they were not prepared for this change at all. 37% of small businesses and nearly a quarter of large businesses said they were not ready yet.
IoD Chief Economist Kitty Ussher said: “In just three weeks, our customs arrangements will undergo major changes, and most companies are either unprepared or unaware of this.
“This will exacerbate the existing Supply chain issues, Leading to further congestion in the port and additional costs incurred by many companies due to accidental violations. The government needs to strengthen publicity and publicity activities around these changes, simplify guidance, and convince all importing companies that they know how to maintain the flow of supply in the new year. “
Amanda Barnes, chief executive of Faversham House, a media and events business, said the upcoming changes have caused problems. “Our problem with import control is more from the perspective of how it affects our overseas and British exhibitors who are trying to bring equipment and mechanical parts to the UK to participate in our exhibition,” she said.
“There is chaos there, and the cost of temporarily importing goods to be displayed at the exhibition has become so high that some of our exhibitors are shrinking booths or trying to cancel booths.
“Paperwork also discourages them. I think it will become a real obstacle to trade, at least in the short term.”
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IoD conducted a survey of 580 of its members, and after deleting companies that said the EU import rule changes “do not apply” to them, the results were based on the responses of the remaining 250 business leaders. Members were also asked what they would like to see improve in the business environment they face.
The new trade relationship between the UK and the EU ranked first with 16% of the votes, the skills shortage ranked second with 15%, and the British economy ranked third with 12%.
A government spokesperson said: “In general, traders are very prepared to introduce import controls. The government is also expected to provide the new systems, infrastructure and resources required for these controls.
“We have been carrying out targeted activities through printing, broadcasting and the Internet to release relevant information to companies-government officials are leading a series of industry-based webinars to help traders and transporters prepare.
“Recognizing that the global pandemic has affected the supply chain in the UK and across Europe, we announced earlier this year that we will implement import controls in phases in 2022 to give companies more time to prepare.”
