Britain’s Road Haulage Association (RHA) believes the Government’s announcement concerning simplified customs checks is not enough to prepare businesses for a no-deal Brexit.
The warning follows the publication of HMRC’s (Her Majesty’s Revenue and Customs) ‘transitional simplified procedures,’ which reduce the amount of information needed on import declarations on goods coming in from the EU.
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HMRC has written to 145,000 VAT-registered businesses trading with the European Union (EU) about simplified importing procedures and also updated them on actions they need to take to prepare.
The British tax authorities maintain the Transitional Simplified Procedures (TSP) for customs will make importing easier for an initial period of one year, should the UK leave the EU without a deal, to allow businesses time to prepare for usual import processes.
Once businesses are registered for TSP, they will be able to transport goods from the EU into the UK without having to make a full customs declaration at the border, and will be able to postpone paying any import duties.
“Leaving the EU with a deal remains the government’s top priority,” said Financial Secretary to the Treasury, Mel Stride. “This has not changed. However, a responsible government must plan for every eventuality, including a no deal scenario. Businesses and citizens should ensure they are similarly prepared for leaving the EU.
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By GlobalData“HMRC is helping businesses get prepared and, amongst other significant communications, has written three times to affected businesses, each time stepping up the advice and encouraging them to take action”
However the RHA, while cautiously welcoming HMRC’s move, is nonetheless warning the size of the task potentially involved may also have to see the French take a position.
“On face value, this appears to be a positive step, but we reinforce our concerns the sheer scale of the issue means there is simply not enough time for businesses to get ready to leave the EU,” said RHA chief executive, Richard Burnett.
“This is just one part of the Brexit jigsaw. The French have still not defined their export process. How on earth can businesses make the necessary arrangements and plan for the future when they are still in the dark as to how the processes on both sides of the Channel will work?
“Despite our constant and incessant calls for clarity, none has been forthcoming and through no fault of its own the haulage and logistics industry is still not ready for a no-deal, no transition Brexit in less than seven weeks’ time.”
HMRC added it anticipates TSPs will remain in place for more than a year to give businesses time to prepare to use the full customs processes which already apply to imports from non-EU countries.
The authority will review the policy three to six months after it is introduced on 29 March 2019.
