British Brexit countdown! Port or massive congestion
- Author:MIKEY
- Source:Sunny Worldwide Logistics
- Release Date:2019-10-16
Recently, cargo owners and freight forwarders with goods entering and leaving the UK should pay special attention to the latest requirements for customs clearance and transportation of goods.
According to Agence France-Presse, the UK will leave the EU on October 31. There are still two weeks left, but the UK and the EU have yet to reach any agreement to guarantee the smooth flow of goods after the Brexit. Shippers and freight forwarders will face problems such as tariff changes, lengthy customs clearance procedures, and transportation congestion.
According to research by the Organisation for Economic Co-operation and Development (OECD), Brexit will lead to an increase in the cost of UK freight transactions.
Shipping company issued emergency notice
Affected by the Brexit, some shipping companies issued emergency notices. Maersk and Ocean Network (ONE) have issued a notice to remind customers to prepare for Brexit.
ONE official website notice
Maersk mentioned in the notice that Brexit means that the UK will no longer be bound by trade agreements between the EU and foreign countries, nor will it enjoy any applicable trade agreements with EU member states. And if there are no other bilateral trade agreements,Trade between the UK and these countries will follow the general rules of the World Trade Organization (WTO), which will affect customs clearance processes, tariffs and many other links related to cargo transportation, ultimately affecting logistics.
Maersk specifically reminded that if the goods were shipped before the Brexit date, but the goods arrived in the UK, the UK had already left the EU.At this point the goods will be subject to the new “After Brexit” clause, which may be very different from the “Before the Brexit” clause.Under the original EU unified customs system, there is no need for repeated customs clearance and tax payment procedures for goods entering and leaving the UK.
Ocean Shipping (ONE) reminded in the announcement that if the UK has no agreement to leave the European Union on October 31, starting from that date, the UK will comply with the EU Customs 24 hours (EU24HR) in advance, as with any other non-EU country. Manifest system.
The EU24HR rules require shipping companies to submit entry declarations (ENS) to all relevant cargoes on ships that are linked to one or more EU ports. That is to say, all goods to the EU countries and transshipment through the EU countries, or to the ports of the European Union on the way, must submit complete and accurate ENS information before the ship arrives at the port of departure, until the ship is in charge of the customs of the first EU country.
In addition to the more complicated customs clearance, after the Brexit, the EU will no longer use the EU custom tariffs. Sino-British trade will operate according to WTO rules. The UK will make certain adjustments to the Sino-British trade policy according to its own situation.
Large-scale congestion in British ports
Port of London Container Terminal
Brexit will not only have a direct impact on customs clearance, but will also put pressure on the UK port. At present, truck transporters can transport goods between any city in the EU, but after the Brexit, British truck drivers will be subject to the 1968 Vienna Road Traffic Convention, and the transport capacity will be greatly reduced, resulting in higher road transport prices.
The latest documents from the British government also show that once the UK leaves the European Union, from November 1st, France will impose mandatory controls on British goods, and trucks may face up to two and a half days of delay before being allowed to transit (to enter the UK).
According to British media reports, because the British government did not introduce preventive measures and related work recommendations after the Brexit, it will lead to container truck drivers trapped in the ports on both sides of the English Channel. Additional customs inspections will greatly reduce the capacity of the Calais-Dover trade corridor, affecting 75% of the roll-on cargo from Europe through the Dover Straits, or the capacity of more than 4 million cargo trucks. It is estimated that about 14,000 trucks cross the British-European border every day, and 53% of imported trucks in the UK come from Europe.
The port is worried that the container staying for too long will cause congestion and whether there will be enough customs officers to cope with the increase in inspections.
remind
October 31 (CET) UK (GB) EORI number will expire in the EU. UK companies can apply for EU EORI numbers in other EU countries in advance. In the perspective of logistics companies, remind the owner of the following points:
1. Apply for EORI in EU countries as soon as possible
Many sellers used to be an EORI at the beginning of GB to solve customs clearance problems throughout Europe. The EU's EORI number is universal and unique, so GB is not working now. To apply for EU EORI as soon as possible, the German market is relatively large. It is recommended to apply for German EORI, which is the EORI at the beginning of DE. Of course, each company has its own side. Focus, you can choose which country to apply for;
2. How to apply for German EORI?
EORI is applied to the Customs and can apply online, but you need to provide a local address to receive the EORI notice, so it is recommended to find a German tax agent. In general, it takes 1-2 weeks to apply for EORI in Germany, but it does not rule out the situation that the system can't handle due to the surge in demand, just as the German VAT application encountered recently. The application materials include: German local tax identification number, German VAT tax number, German taxation office and other related information.
3, customs clearance program selection and reminder
Time is tight, it is recommended to choose the German direct channel for air transport, apply for German EORI immediately, the sooner the better; take the maritime channel, it is recommended to choose the customs clearance as much as possible, if the application is too slow, the supervision warehouse can be used as a transition period; This is a very momentary risk of customs, a more conservative approach can temporarily choose to use our European double clear channel to transfer into Germany.
If the UK leaves the EU without an agreement, then all trade with Europe will be in accordance with the terms of the World Trade Organization (WTO). Under WTO tariffs, British goods exported to the EU account for 48% of total exports and will be subject to a trade-weighted average tariff of 5.7%, while EU exports to the UK (16% of total EU exports) will face a 4.3% tariff. Some researchers pointed out: "There are also major non-tariff barriers to trade, including customs control, new border inspections, especially for food and agricultural products, and regulatory barriers."
(Contents are compiled from shipping consultation, shipping network)
According to Agence France-Presse, the UK will leave the EU on October 31. There are still two weeks left, but the UK and the EU have yet to reach any agreement to guarantee the smooth flow of goods after the Brexit. Shippers and freight forwarders will face problems such as tariff changes, lengthy customs clearance procedures, and transportation congestion.
According to research by the Organisation for Economic Co-operation and Development (OECD), Brexit will lead to an increase in the cost of UK freight transactions.
Shipping company issued emergency notice
Affected by the Brexit, some shipping companies issued emergency notices. Maersk and Ocean Network (ONE) have issued a notice to remind customers to prepare for Brexit.
Maersk official website notice
ONE official website notice
Maersk mentioned in the notice that Brexit means that the UK will no longer be bound by trade agreements between the EU and foreign countries, nor will it enjoy any applicable trade agreements with EU member states. And if there are no other bilateral trade agreements,Trade between the UK and these countries will follow the general rules of the World Trade Organization (WTO), which will affect customs clearance processes, tariffs and many other links related to cargo transportation, ultimately affecting logistics.
Maersk specifically reminded that if the goods were shipped before the Brexit date, but the goods arrived in the UK, the UK had already left the EU.At this point the goods will be subject to the new “After Brexit” clause, which may be very different from the “Before the Brexit” clause.Under the original EU unified customs system, there is no need for repeated customs clearance and tax payment procedures for goods entering and leaving the UK.
Ocean Shipping (ONE) reminded in the announcement that if the UK has no agreement to leave the European Union on October 31, starting from that date, the UK will comply with the EU Customs 24 hours (EU24HR) in advance, as with any other non-EU country. Manifest system.
The EU24HR rules require shipping companies to submit entry declarations (ENS) to all relevant cargoes on ships that are linked to one or more EU ports. That is to say, all goods to the EU countries and transshipment through the EU countries, or to the ports of the European Union on the way, must submit complete and accurate ENS information before the ship arrives at the port of departure, until the ship is in charge of the customs of the first EU country.
In addition to the more complicated customs clearance, after the Brexit, the EU will no longer use the EU custom tariffs. Sino-British trade will operate according to WTO rules. The UK will make certain adjustments to the Sino-British trade policy according to its own situation.
Large-scale congestion in British ports
Port of London Container Terminal
Brexit will not only have a direct impact on customs clearance, but will also put pressure on the UK port. At present, truck transporters can transport goods between any city in the EU, but after the Brexit, British truck drivers will be subject to the 1968 Vienna Road Traffic Convention, and the transport capacity will be greatly reduced, resulting in higher road transport prices.
The latest documents from the British government also show that once the UK leaves the European Union, from November 1st, France will impose mandatory controls on British goods, and trucks may face up to two and a half days of delay before being allowed to transit (to enter the UK).
According to British media reports, because the British government did not introduce preventive measures and related work recommendations after the Brexit, it will lead to container truck drivers trapped in the ports on both sides of the English Channel. Additional customs inspections will greatly reduce the capacity of the Calais-Dover trade corridor, affecting 75% of the roll-on cargo from Europe through the Dover Straits, or the capacity of more than 4 million cargo trucks. It is estimated that about 14,000 trucks cross the British-European border every day, and 53% of imported trucks in the UK come from Europe.
The port is worried that the container staying for too long will cause congestion and whether there will be enough customs officers to cope with the increase in inspections.
remind
October 31 (CET) UK (GB) EORI number will expire in the EU. UK companies can apply for EU EORI numbers in other EU countries in advance. In the perspective of logistics companies, remind the owner of the following points:
1. Apply for EORI in EU countries as soon as possible
Many sellers used to be an EORI at the beginning of GB to solve customs clearance problems throughout Europe. The EU's EORI number is universal and unique, so GB is not working now. To apply for EU EORI as soon as possible, the German market is relatively large. It is recommended to apply for German EORI, which is the EORI at the beginning of DE. Of course, each company has its own side. Focus, you can choose which country to apply for;
2. How to apply for German EORI?
EORI is applied to the Customs and can apply online, but you need to provide a local address to receive the EORI notice, so it is recommended to find a German tax agent. In general, it takes 1-2 weeks to apply for EORI in Germany, but it does not rule out the situation that the system can't handle due to the surge in demand, just as the German VAT application encountered recently. The application materials include: German local tax identification number, German VAT tax number, German taxation office and other related information.
3, customs clearance program selection and reminder
Time is tight, it is recommended to choose the German direct channel for air transport, apply for German EORI immediately, the sooner the better; take the maritime channel, it is recommended to choose the customs clearance as much as possible, if the application is too slow, the supervision warehouse can be used as a transition period; This is a very momentary risk of customs, a more conservative approach can temporarily choose to use our European double clear channel to transfer into Germany.
If the UK leaves the EU without an agreement, then all trade with Europe will be in accordance with the terms of the World Trade Organization (WTO). Under WTO tariffs, British goods exported to the EU account for 48% of total exports and will be subject to a trade-weighted average tariff of 5.7%, while EU exports to the UK (16% of total EU exports) will face a 4.3% tariff. Some researchers pointed out: "There are also major non-tariff barriers to trade, including customs control, new border inspections, especially for food and agricultural products, and regulatory barriers."
(Contents are compiled from shipping consultation, shipping network)