My thoughts on Brexit

I've been reading a lot about Brexit recently, particularly related to IT systems and import/export, so I thought I'd share my thoughts/findings.

Britain is no longer a member of the EU. It has left the single market and the EU customs union (although this won't take effect until Jan 1st).

The current negotiations are not about custom arrangements as these will be needed anyway, given that  we have now left the customs union. The main point of the negotiations (excluding fisheries) is to come to a free trade agreement, ie zero or limited tariffs in either direction. Both sides claim to want this but the UK is unwilling to produce products to EU standards with EU labour laws. There is already a EU free trade association, EFTA, which includes non-EU states such as Iceland, Norway and Switzerland. I don't think the UK wants to join EFTA, preferring it's own deal. Which should be easy, as in the words of Michael Gove, [we] “hold all the cards and we can chose the path we want”. Good luck with that.

Imports: The UK proposed and then backed off from full customs control of imports from the EU from Jan 1st. It will now be a three-phased approach to be fully implemented by July.

Exports however will be subject to the new approach from Jan 1st. Here is where we get into alphabet soup. HMRC is working on a system called GVMS (goods vehicle movement system) which is promised for Jan 1st. It will be tested in November. Many people (myself included) doubt it will be ready in time. GVMS requires exporters to collate 3 previously unneeded pieces of paperwork which are then given a unique Goods Movement Reference or GMR to be handed to the port authorities (or ferry operator?) to allow access to the ferries. There are costs to this: HMRC charges an average £34(?) per document.

In addition, each exporter will need an EORI (Economic Operator Registration and Identification). There have been few applications for this so HMRC has assigned them to each business it thinks is an importer or exporter.

And this is just to get your lorry on the ferry. You will need a GMR equivalent, obtained before entering the EU, from one of at least four different IT systems (France, Netherlands, Spain, Belgium) in order to enter the EU.

Drivers will need a passport with at least 6 months remaining on it. One or more international driving permits will be needed, depending on the countries travelled through.

Your company may need an ECMT (European Conference of Ministers of Transport) permit to send lorries to the EU. The government is hoping this won't be necessary. If it is, these permits are rationed by the EU and the UK would get only 25% of its requirements, allocated to, and distributed by, the DfT (dept for transport). I can't believe there isn't more in the press about this.

The government recently produced a 206 page document called The Border Operating Model. It covers imports and exports but is surprisingly thin on details when it comes to IT requirements. It does propose that companies either train someone in doing customs paperwork or farm it out to a customs agent (if there are any free!). All at a cost of course. Didn't Brexiters promise friction-free borders?

Talking of costs, the government has announced: "Unprecedented £705 million investment will fund new infrastructure, jobs and technology at GB-EU border". This is for border control posts, only needed for Brexit. I'm not sure how it qualifies as an investment though. More like an unnecessary expense. Note also the use of the phrase GB-EU border. Great Britain excludes N.Ireland and all bets are off as what will happen on these three borders: GB-NI, NI-Ireland, GB-Ireland. And any reference to the UK above might mean just GB.

I seem to think NI is remaining in the EU or at least the customs union and single market. It's complicated. And we haven't even talked about immigration and freedom of movement yet!

That's all for now.