Warning, Your British Guests May Have Been Driven Crazy By Brexit

- Jan 25, 2021-


After more than nine months of difficult game, on December 24, 2020 local time, the UK and the EU formally reached a trade agreement on brexit.

Analysts said that when the British government cheered for the "brexit" agreement, Scotland was quite dissatisfied with the contents of the agreement involving agriculture and fisheries. Scotland recently called for "independence" again. In addition, many enterprises in the country have been affected by the brexit trade agreement.

In a note, the European Commission pointed out that although "brexit" without agreement has been avoided, enterprises will still pay a considerable price for "brexit", for example, exporters will face additional border inspection and paperwork.

Due to the lack of correct customs documents, food delivery was delayed, logistics companies stopped the transportation of goods, and retailers found that their supply chain might be impacted. These are the outstanding problems in a series of sequelae of brexit. The specific performance is as follows:

Inside Britain, "make complaints about it"

Before brexit, British consumers are free to buy goods anywhere in the EU without paying import duties and other fees. Everything changed on January 1, 2021.

Many British fishermen complain that the trade and transportation between Britain and Europe have been blocked, which has led to the sharp drop in the prices of some fishing products. Some fishermen simply stop exporting seafood to the EU market.

Despite Boris Johnson's claim that tariff free trade will take place after the end of the transition period of brexit on December 31, consumers who buy goods from EU websites are still being pursued for import duties, VAT and express delivery management fees, which consumers find unreasonable.

Since January 1, people who buy goods from the EU (and vice versa) have faced import fees. As consumers on both sides of the Taiwan Strait are unwilling to pay high import fees, the new regulations put thousands of enterprises at risk.

Paul, a business owner with 50 employees, said: "almost a third of the annual turnover of 7 million pounds a year comes from customers in EU countries. But for now, we will have to pay a lot. " Paul has been trying to figure out how to bear the extra cost. It turns out that all these expenses will come directly from profits.

He added: "we may save part of the cost of doing business in Europe by setting up a warehouse in Europe so as to avoid paying for each shipment, but we will have to lay off staff in our warehouse here and reduce the size of our business in Europe. Although we are only a relatively small enterprise, all importers and exporters are accusing us of the new regulation.

According to the guardian on January 23, British foreign trade enterprises have to face additional tax burden and approval license since brexit. Therefore, British International Trade Department officials privately suggested to British export enterprises that they can avoid border problems and corresponding value-added tax by registering new companies in the EU.

It is reported that two British enterprises have decided to register new companies in the EU, but many small and medium-sized enterprises have not yet made a decision. A person in charge of the company said that it was a forced decision, and it also meant laying off some British employees. However, he also said that it could avoid time delay caused by cross-border and reduce transportation costs. So far, the UK International Trade Department has not commented on this.

The influence of brexit on foreign trade

EU exporters: stop selling to UK

Before brexit, exporting companies can check VAT payments and charges through an electronic system that calculates which countries will benefit from which taxes. Since January 1, the EU will no longer verify the UK VAT number, so the UK VAT will have to be collected at the point of sale rather than the point of import and transferred to HMRC.

In this regard, many EU suppliers have been affected. For example, a company cannot import jeans from Bangladesh or cheese from France to a hub in England and send it to a store in Ireland. Because they have to pay a lot of export duties.

Dutch bike bits, a bicycle parts supplier, said on its website that it was forced to stop dealing with British customers because of the "brexit" policy, even though its company "has many customers in the UK and wants to work with them for a long time.".

Scandinavian outdoor, the Finnish outdoor clothing retailer, said it had stopped selling in the UK, but hoped to place another order once "our UK VAT registration and the overall process of selling to the UK after brexit have been resolved".

Other companies that have decided to stop shipping to individual consumers in the UK include Belgian beer expert beer web, bestsecret, German designer's merchandise website, Belgian chocolate maker Neuhaus and Dutch household goods store HEMA, which have just closed their online stores in the UK.

Port: ships stay more than 32 hours

As a result of brexit, hundreds of British truck drivers were fined for crossing Kent without permission. Since the new rules came into effect on January 1, the British police have issued 407 tickets. Trucks travelling from all over the UK to France must obtain a Kent pass before entering Kent, so that they can obtain the right of way to Dover port or the European tunnel.

Felixo, the largest port in the UK, usually handles 40% of all container traffic in the UK. However, the average stay time of ships in the port is more than 32 hours, which forces shippers to transfer goods to other ports. Since the end of last year, Maersk and MSC have replaced Felixstowe with Liverpool on their transatlantic TA2 / neuatl2 ring route.

Ireland's tax Commissioner announced that they were trying to relax the trading policy. But there are still a lot of complaints that the loading truck was stuck in Dublin port during the inspection.

Some companies expect cross-border problems in Europe and fill their warehouses with goods in stock (such as auto parts and medicines) before the end of the brexit transition. So far, this has kept cross-border traffic at a fraction of normal levels. In the next few weeks, as these inventories decrease, business activity will increase and delays will intensify again.

Freight: poor freight, delivery delay

The biggest sticking point in the brexit negotiations is the border issue between Northern Ireland and Ireland, a member of the European Union. In the end, an agreement was reached between Britain and Europe, and the trade between Northern Ireland and the European Union would not be blocked. However, goods from Northern Ireland need to go through a series of complicated customs clearance procedures to enter the British market in Great Britain.

The Irish Association of freight forwarders said the supply chain had suffered a "severe shock" since the end of brexit on December 31. For all exporters, due to the unclear policy, they could not handle the customs declaration correctly, so they left the auto parts, household goods, furniture, clothing and groceries in the warehouse. The end result is that our profit margin is very narrow. Businesses will stop trading, resulting in unemployment, supply lines will disappear, consumers will be in short supply, and prices will rise.

In addition, due to the brexit of the UK, goods between the EU and the UK need to go through new customs procedures, which is very complicated. It is reported that DPD of France post has suspended some services in the UK and Europe, and DB Schenker has also suspended freight services to the UK due to significant delay caused by full mistakes in customs documents.

Recently, DHL issued a notice: it will immediately suspend some services in the UK and Europe, which exacerbates the negative impact of brexit. DFDs, a large Danish logistics company, said that "a large number" of trucks on ferries from Dover to France are being rejected or delayed due to lack of accurate policy and rules.

Forecast analysis

Cui Hongjian, director of the Institute of European Studies of the Chinese Academy of international studies, said that after the brexit agreement was reached, Britain will face an important challenge in the future: the implementation and implementation of the agreement. Despite the so-called "win-win arrangement", the specific direction of trade between Britain and Europe is uncertain.

Cui Hongjian pointed out that after the UK leaves the EU, the concept of "global UK" will face greater risks to a certain extent. On the one hand, as a single sovereign state, Britain's influence in participating in regional foreign security affairs and economic and trade affairs is decreasing, and it does not have the strength to participate in the competition of big powers in the short term. On the other hand, public opinion in the UK is worried that after leaving the EU, the UK may further rely on the US for its own security.

Germany's Le Monde published a comment entitled "the fate of Britain is still in Europe". The article pointed out that it will take time to prove whether the brexitists can fulfill their promise of "brexit and cure all diseases". European Commission President Frederick von draen believes that the European Union is still strong, and the United Kingdom will no longer be a giant without the EU. For Britain, "brexit" is just the beginning. Even after brexit, Britain still can't get around the European Union, and Europe is still Britain's destiny.

The guardian said that for many companies, this is the drawback of brexit, and they are not prepared to deal with the problems that may arise in all walks of life. It will only exacerbate discomfort in the UK during the outbreak. At the beginning of January, one in 50 people in Britain was infected with the virus, and the country is in the third national blockade. Analysts say the UK economy is moving towards a double dip recession.

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