More than Brexit: UK innovation highlights

Latest from Brexit at a glance

The government speech

Prime Minister (PM) Theresa May held her long-awaited speech confirming further tangible information on Brexit plans, as reported by the BBC on 17th January. It was a simple and clear statement in line with previous announcements. The PM confirmed the following key points:

1. The final Brexit deal would be put to a vote in Parliament
2. The UK would not remain in the EU single market
3. The government will push for the freest possible trade with EU member states
4. Brexit negotiations are a key priority – this includes maintaining the common travel area between the UK and Irish Republic and “control” of migration between the UK and the EU
5. It is still planned to serve notice under Article 50 of the Lisbon Treaty by the end of March

An association reaction

The same day, the UK’s Freight Transport Association (FTA) reported that the announcement still leaves freight forwarding executives with many questions:

1. Will customs authorities reintroduce EU transaction border controls?
2. Will the planned replacement of the UK customs system CHIEF go ahead as planned and will the new system be able to handle the millions of extra transactions?
3. How will controls on dual use items be managed in the future?
4. Final answers to these questions will depend on the next official steps in the process. And it’s crucial for the businesses community and industry associations to come together to engage on the topic.

The Supreme Court ruling

Of course, all of this was quickly overshadowed by the UK’s Supreme Court’s ruling against the government on 24th January, as published by the BBC:

1. It ruled that Article 50 cannot be triggered without prior consent by both Houses of the UK Parliament. This means that the UK Parliament must vote on whether the government can start the Brexit process.
2. The case was brought by campaigners against the government last year and argued that triggering Article 50 would overturn existing UK law and that denying the UK Parliament a vote on it was undemocratic and a breach of long-standing constitutional principles.
3. While campaigners welcomed this ruling, the government commented it is not expected to delay outlined Brexit plans.
4. We are now awaiting the Parliament’s vote and a new government white paper outlining further details on Brexit plans, processes and options, and timelines.

Brexit: What you can do now

What you’ve already done (right?)

1. Engaged with your suppliers, partners, local associations, and government representatives
2. Analysed alternative sourcing options to offset possible tariff and trade deal changes
3. Assessed impacts on short, mid, or longer term cost across supply chain operations
4. Analysed current global trade IT systems and applications together with integrated business partners to determine flexibility for managing new customs processes
5. Included budget provisions for resulting measures starting 2017 financial year

What you can do next

Make your business processes and logistics systems as efficient as possible. It is all well and good to say “let’s wait and see what happens”. But if you are not starting from a strong position, implementing change will be far more painful and costly than necessary.

Take customs management, for example: current priorities should focus on ensuring responsible employees are identified and trained, and flexible software is integrated to manage regulatory changes and cope with volume increases.  If you are working with customs brokers or agents, engage with them to discuss how changes may impact your business, whether new requirements can be fulfilled, and ensure that a continued commitment to service and quality is in place.

These simple actions will support a far more robust approach to any “wait and see” strategy. Global trade is always on the move and it will not stand still waiting for Brexit to happen. Taking measures to prepare for Brexit will actually deliver immediate benefits in terms of efficiency and quality – and put you in the right position to keep your competitive edge if and when bigger change lands. If your current customs solution is not Brexit-proof, follow the links below to see how AEB can help. 

Export Filing UK with AEB

Import Filing UK with AEB

Customs Broker Integration with AEB