The United Kingdom left the European Union on 31 January 2020 and is now officially a third country to the EU. However, a transition period until 31 December 2020 applies.
During the transition period, there is no impact on taxation and customs:
For the period as of January 1st, 2021:
The UK and EU are still negotiating the terms of a post-Brexit agreement, but a ‘no-deal’ scenario remains a possibility. In any case UK’s departure will have serious consequences on logistics flows from January 1st, 2021 onwards. All stakeholders must prepare for them.
- Customs clearance processes for shipments between the EU and the UK are likely to lead to higher operating costs for logistics operators.
- DHL Express announced a special surcharge on dutiable shipments between the UK and the European Union as of January 1, 2021 due to significant additional operational cost by the company. This is likely to be €0.25 per kg, according to the company.
- The Chancellor of the Duchy of Lancaster, Michael Gove, outlined the UK government’s “reasonable worst-case scenario” planning, including a warning that between 30-50% of trucks crossing the Channel will not be ready for the new regulations coming into force on January 1, 2021. In addition, a “lack of capacity to hold unready trucks at French ports” could reduce the flow of traffic across the strait to 60-80% of normal levels. The letter underlined that “this could lead to maximum queues of 7,000 port bound trucks in Kent and associated maximum delays of up to two days”. It warned that the disruption could last up to three months as alternative routes are sought and supply chains adapt to the new processes and regulations in place.
- According to DHL Express Europe CEO Alberto Nobis, the international express operator plans to switch shipments from trucks to planes at the end of this year to avoid the risk of having goods delayed at the UK border. Instead, shipments will be flown from DHL hubs in Europe to and from its main UK at East Midlands Airport.
- According to Hurricane Commerce there is a large discrepancy between businesses that have put in place robust plans and those that have not. The company warns that senders who are not able to provide complete and valid data on parcels from January 1st 2021, will face severe impact on their businesses.
- The UK government “ramped up preparations” for the end of the UK’s transition period after leaving the EU by publishing an updated Border Operating Model. This provides further detail on how the future Great Britain (GB)-EU border will work and the actions that traders, freight and logistics intermediaries, and hauliers involved in UK-EU trade will need to take before the end of this year and beyond.
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