Britain’s Customs authorities have reiterated UK Prime Minister, Theresa May’s wish to ensure post-Brexit trading between the European Union (EU) and London is as “frictionless” as possible.
Her Majesty’s Revenue & Customs (HMRC) – also responsible for taxation issues in the UK – was responding to concerns aired by Britain’s Road Haulage Association (RHA) warning the country’s food supply could be “seriously damaged” unless robust customs controls were negotiated with the EU as London prepares to invoke Article 50 triggering the Brexit process.
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That move took a significant step forward last week (9 February) as the UK Parliament passed the Third Reading of the European Union (Notification of Withdrawal) Bill with the government securing a majority of 372, although the 122 MPs voting against contained a significant number of rebels both on Conservative and Labour sides of the House of Commons.
But the RHA is raising concerns echoed by many in both automotive and non-related sectors concerning the future impact any exit from Customs Unions rules could have on freight transport, in this particular case, food.
The body is cautioning of ‘serious damage’ to food supplies, of which 30% enter the UK by lorry, with potential customs problems ‘crippling’ supply chains, citing the current shortage of vegetables in Britain exemplified by the dearth of lettuce.
“Nearly 30% of all food consumed in the UK comes from the EU and it all arrives in lorries,” said RHA chief executive, Richard Burnett. “At the moment the process is seamless – it’s as easy to deliver from Milan to Manchester as it is from Manchester to Leeds as far as customs processes are concerned.
“After Brexit, that will no longer be the case, and we have to get the new processes right. Otherwise the system for getting food into the country could grind to a halt. ”
The RHA fears massive queues of lorries could build up at ports with not enough experienced staff to cope with a backlog while fresh food supplies potentially rot.
British Customs authorities are remaining coy as to any precise details concerning future cross-border trading arrangements, but insisted a new set-up would be established to ensure smooth passage of goods for UK businesses.
“The government is committed to establishing a new customs arrangement with the EU that makes cross-border trade for UK businesses as frictionless as possible,” an HMRC spokesman told just-auto.
“We are listening to business and have been working with associations across industry including the Road Haulage Association. We aim to limit uncertainty in implementation and to ensure our Customs service works for business.”
However, in comments issued by the RHA last week, the association insisted HMRC be given “whatever resources” it required to secure adequate Customs arrangements.
“We are not re-assured by recent government statements,” added Burnett. “The White Paper suggests HMRC has a world-class customs service. For EU continental road haulage it has no system.”
British Prime Minister, Theresa May, recently outlined her wish the UK should secure the “greatest possible access to the Single Market, on a fully reciprocal basis, through a comprehensive Free Trade Agreement,” with possible Single Market arrangements, although it is by no means clear what this could entail.
The UK Premier insisted she wanted Britain to have tariff-free trade with Europe and cross-border business to be as “frictionless” as possible, but now the Bill has passed one of its most significant hurdles, it is manifest intense horse-trading will now start in EU capitals as industries jockey for favour in their individual sectors.
Secretary of State for Exiting the European Union, David Davis welcomed the Parliamentary debate, maintaining he “respected” the strong views on all sides.
“The decision on EU membership has been made by the people we serve,” said Davis in comments sent to just-auto by his department.
“It is now time for everyone, whichever way they voted in the Referendum, to unite to make a success of the important task at hand for our country.”
