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    Planning for a hard Brexit

    16.12.20

    The Brexit transition period – during which the old rules between the European Union and the United Kingdom remain in effect – will run out at the end of this year. If a new trade deal has not been worked out by then, everyone will have to face a no-deal Brexit. inTime has taken precautions for that eventuality.

    In 2016, the British electorate voted in a referendum to leave the EU. On January 31 of this year, the United Kingdom then officially left the union. However, the parties gave themselves until the end of 2020 to hash out new rules for political, economic and social cooperation. “We – and by that I mean all the companies involved in importing and exporting to and from the United Kingdom – could really use some clarity about what will need to be done starting in January 2021!” said Jörg Breitenbürger, Key Account Manager at the logistics service provider. The negotiations between the parties have made progress again in the past few weeks. However, time is running out since all agreements will have to be ratified. “As a logistics service provider, we can only watch what is happening and prepare our customers, carriers and ourselves for a specific scenario,” continued Breitenbürger. The Isernhagen-based logistics experts currently assume that there will be no deal and thus no dedicated processes for the period starting in 2021. However, they have clearly signaled to customers that inTime will continue to transport goods to and from the United Kingdom. Without a trade deal between the EU and UK, shipments will face large trade obstacles: tariffs, import quotas and customs controls. inTime has implemented the processes that customs clearance procedures require with the German customs authorities. Its partners on the other side of the English Channel are also prepared to clear shipments through customs. However, shipments can only be transported if the parties submit all the documents needed to expedite the customs clearance process. They include a customs power of attorney, the commercial invoice and, if relevant, declarations of origin and preferential certificates. In some cases, the original documents must be submitted with the customs declaration. The need for complete document transparency, the customs formalities at the border and any controls imposed following a no-deal Brexit will dramatically increase the waiting times for goods imports and exports. This increase in administrative effort will inevitably push up the rates for shipments to and from the UK. To keep its logistics agile, inTime is working on alternatives and specially tailored logistics solutions for customers whose business depends on the ability to trade with British partners.

    If you are looking for detailed information on the subject - such as a list of the necessary documents for import and export - you can find it here.

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