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Summary
- The UK manufactures have reported disruptions and delays in the supply chain post Brexit.
- Make UK, the manufacturers’ union, has requested the government to resolve the problems soon.
Make UK, the manufacturers’ union of the United Kingdom, has urged the government to address Brexit border delay issues that have been causing supply chain disruptions for British companies.
(Image source: ©Kalkine Group 2020)
Make UK is a union of British manufacturers that comprises of nearly 20,000 businesses. A survey by Make UK indicated that around 60 per cent of the participant companies were experiencing significant disruptions due to Brexit since the past few weeks, despite being prepared for it. The results also revealed that 61 per cent of the companies were also facing an impact on the supply chains, with problems occurring at either imports or exports front, to and from the EU. While 32 per cent of the participants said that they were affected in both directions.
The UK signed a free trade deal with the EU on 24 December 2020 before the transition period ended on 31 December. The provisions and terms of the agreement clearly stated that trade between both the nations will remains free of tariffs and quotas. However, new custom border rules also specified additional paperwork and checks, which have led to an increase in the supplier delivery period.
One month has passed since the Brexit deal has been signed and the effects are becoming clearer.
Rising costs and red tape
With the British firms trying to adapt to the new trading relations with the EU from 1 January, companies have been complaining of a surge in red tape and costs. The impact of additional red tape has added to the struggles of the firms, which are already finding it hard to prove origin of their goods to qualify for zero tariffs. Make UK said that some companies are finding this so difficult that they are preferring to pay the tariffs rather than spending more time and money in trying to apply for a tariff-free access.
The increase in paperwork has resulted in delay in moving goods from the EU to Britain, with many of the trucks stuck on the other side of the Channel because of incorrect paperwork.
Also Read: Brexit rules prompt Amazon to restrict alcohol sale in Northern Ireland: Report
The Make UK has called upon the government to fast track the training of good quality customs agents to improve the flow of goods at the border. It has also requested the government to work with the EU to simplify customs paperwork on both sides of the border so that it can be checked quickly.
Ben Fletcher, policy director at Make UK, expressed that the last month has been like Dante’s fifth circle of hell for importers and exporters whose supplies have been interrupted because of new red tape. He added that there is real anger and incredible frustration among businesses who have been trying to either import or export goods from the EU.
He further said that getting the paperwork right is tiresome given the extremely low level of support from government.
