News Brexit
Problems expected in next phase of Brexit
There has been no major chaos in trade and transport since Brexit. This does not alter the fact that there are many problems, especially with exports from the United Kingdom (UK) to the European Union (EU). The new phase that will come into effect from April may also cause problems for European exporters.
The second phase of the Border Operating Model will start on 1 April. Then there are also additional requirements for certain products that are exported to the UK. This means that Dutch companies that export products to the UK must be provided with the correct documents and certificates.
Badly prepared
The Netherlands Food and Consumer Product Safety Authority (NVWA) notices that many companies are not yet well prepared for these new rules. This can lead to delays and high costs. Especially (SME) companies that until now only trade with countries within the EU, are having trouble with the new situation. In many cases they are not familiar with the extra rules and formalities associated with trade with countries outside the EU. The NVWA's advice is to thoroughly investigate which documents and certificates are required and how they can be obtained. Good preparation is essential to continue doing business with the UK after 1 April.
Earlier, the UK appeared to be ill-prepared for the new situation. The infrastructure needed to export goods to the EU was not in order there. Vegetables, fruit, flowers and meat must be accompanied by a health declaration or phytosanitary certificates. Customs' IT systems also still contain errors and gaps. "Documents and certificates for these goods that go to the EU appear to be incorrect or incomplete in 60% to 70% of the cases," says Tim Heddema, agricultural consultant at the Dutch embassy in London. "This not only results in delays at the border. Goods are therefore stopped and returned or even destroyed."
Close cooperation
The NVWA is in close contact with DEFRA (the English Ministry of Agriculture), the customs authorities and the Dutch embassy about which mistakes are made and/or which data is missing. The data exchange aims to clarify and streamline the guidelines so that exporters know better what to take into account. "Certainly for fresh and perishable products, it is important to keep transit times as short as possible," says Heddema. The hope is that enough lessons have been learned from the first phase and that the biggest hurdles have been overcome in the entry into force of the second phase.
Trade is still lagging
Furthermore, experts note that trade in agricultural goods between the EU and the United Kingdom is still lagging behind since Brexit. This is because companies built up large stocks on both sides of the North Sea before Brexit took effect.
Jurphaas Lugtenburg
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