Brexit...Dr Andrew Grainger | TU Delft | Trade Facilitation Consulting | Contact: grainger (a) tradefacilitation.co.uk Take back control… At the border this is about: •The Goods,

Andrew Graingergrainger [a] tradefacilitation.co.uk

Brexit

Dr Andrew Grainger | TU Delft | Trade Facilitation Consulting | Contact: grainger (a) tradefacilitation.co.uk

The five stages of grief

2

https://www.youtube.com/watch?v=jYN4CllWuiM

• Denial

• Anger

• Fear

• Bargaining

• Acceptance?

https://www.youtube.com/watch?v=jYN4CllWuiM


The UK’s Political Landscape

3

May

Fox / Davis / Johnson

Osborne

Treasury

Corbyn

Cable

The

backbenchers

• 5000 customs officers?– Experts in key areas such as valuation and origin are scarce

• Uncertainty about applicable rules, procedures and systems– Subsequent uncertainty about demands upon the private sector

• It takes years to bed-in new systems

• Additional cost of making export declarations to our main markets

• Additional cost of making import declarations in our main markets

• Risk of delay and the additional cost of hedging strategies (e.g. holding buffer stock in warehouses)

https://theconversation.com/the-unforeseen-cost-of-brexit-customs-62864

https://theconversation.com/the-unforeseen-cost-of-brexit-customs-62864


What does the Customs Manager do?

5

Source: Grainger, A (2016) “Customs management in multinational companies”,

World Customs Journal, 10(2), pp.17-35

[http://worldcustomsjournal.org/archive/volume-10-number-2-september-2016/]

http://worldcustomsjournal.org/archive/volume-10-number-2-september-2016/


Trade compliance is complex

6

Rural Payment

Agency

HM Revenue

Customs

Port Health

Authority

Port

Importer applies

for licence

Sets up security

Importer receives

RPA’s confirmation

Agent makes declaration

to HMRC (incl. reference

to RPA licence)

RPA returns security

after licence is used up

Importer receives from

Exporter the original

Veterinary Health Certificate

Importer/Agent prepares

CVED and submits to the

PHA using TRACES

Agent sends a paper copy of

the CVED with supporting

documents to the BIP

Agent collects/receives

stamped CVED

Shipping line pre-notifies HMRC

with the Shipping Manifest

Agent pays all

applicable PHA fees

Agent sends supporting

documents to HMRC’s

National Clearance Hub

Importer send all relevant

documents to agent

Agent sends stamped

CVED on to final

destination

(HMRC may conduct an inspection)

Agent faxes/e-mails copy of

stamped CVED to HMRC’s NCH

HMRC release their

hold on cargo

(Agent books and pays

for VBS premium

collection slots;

optional)

Agents pays applicable

port charges

Agents arranges for

collection of cargo

from port using port

community system

(Appointed haulier

collect and delivers

cargo to final destination)

Mo

nth

s

ah

ea

dW

ee

ks

/ D

ay

s a

he

ad

At

arr

iva

l

Po

st

-

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ara

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e

Entry Into the UK

Shipping

Line

Importer/Exporter/Agent

books vessel

Importer/Agent receives

Shipping Line’s ETA

(Ship arrives and the port’s

stevedore off-loads cargo)

Agent pays port related

shipping line charges

Shipping line

releases cargo

(PHA conducts

applicable checks)

and stamps CVED

Agent/Haulier

return empty container

to the shipping line

(usually at the port)

(Final destination

keeps copy of CVED

for one year)

(If released from port into any

procedure other than

Free Circulation

compliance with relevant

procedures applies)

Importer/Agent keep

applicable records

(Importer receives EUR1

Certificate of Authenticity,

and Origin Documents;

if applicable)

HMRC request copy of CVED and

supporting documents, if not

already submitted by agent

EXAMPLE:

UK meat imports

Andrew Grainger (2013) http://eprints.nottingham.ac.uk/2143/

Exporter 1-2

Importer 4-7

Agent 10-13

Shipping

Line

3

RPA

(import

licensing)

2

Port Health

Authority

2

HM

Revenue

and

Customs

2

Total 26

http://eprints.nottingham.ac.uk/2143/


Brexit from the inside…

8


Take back control…

At the border this is about:

• The Goods, the Vehicles that move the goods, and the People that operate the vehicles

• The administration and enforcement of trade and customs controls

• Customs procedures, Non-customs procedures, Trade facilitation

It concerns:

• Imports and Exporters

• Their intermediaries

• The providers of supporting infrastructure

• Public and private

• Customs and other government departments

• In the UK and with partner countries

• The wider public where costs are passed on

9


Impact on Logistics operations

Related issues:

• Transport regulation

• Operating licences and cabotage

• Freedoms of the sky

• Labour

• Drivers, warehouse staff

• Technology

• Automation, disruptive technologies

10


Impact upon the supply chain

Production Networks and Supply Chains

• National content requirements

• Access to preferential duty rates

• Impact of higher logistics and compliance costs upon location and investment decisions

Related issues

• Industrial strategies

• Time frames for Brexit negotiations

• Research and innovations

• Interim arrangements

• The form and shape of future trade and partnership agreements with the EU

11


Impact upon Compliance Systems

Legal Framework

Supporting services

offered by intermediaries

Supporting electronic systems

(Public and private)

Staff and resources

Education and training

12


Mitigation

Trade Facilitation Principles

Simplification

Harmonisations

Modernisation

Standardisation

Significant improvements in

border management

Inter-agency

Intra-agency

With the private sector (eg. AEO)

Cooperation agreements

Across both sides of the boarder

Along trade lanes

Mutual recognition of controls and

procedures

Fu

rth

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rea

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g: G

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http://www.europarl.europa.eu/RegData/etudes/STUD/2017/578046/EXPO_STU(2017)578046_EN.pdf


Problem Statement

• Protectionist vs Liberal

• Trade policy, customs policy, non-trade and customs policy

• National security

• Global security

• “Take back control” and sovereignty

Political Issue

• Laws, regulations, guidelines

• Local, National, Bilateral, Regional, International Legal Commitments

Legal Issue

• Customs and Other Government Departments

• Inter-agency co-operations

• Interagency co-operation

• Cross-border and International co-operations

Administrative Issue

• Market access and opportunities

• Competition and competitiveness

• Economic growth

• Trade winners

• Trade losers

Economic Issue

• Transport and logistics systems

• Border management systems

• Public sector operations

• Private sector operations

• Public Private Partnerships

Operational Issue

• Data sharing

• Supporting information infrastructure

• Electronic standards and computer systems

• Legacy systems

• Innovation

Technological Issue


Resilience and Continuity Planning

Capacity / Performance

measure

Time

Threat

Response

Period of disruption

Loss in capacity


https://scholar.google.co.uk

16