Results from the听first major business survey for 2021 by the听British Chambers of Commerce鈥痮n听Brexit found that half听(49%)听of鈥� exporters 鈥痑re鈥� facing 听difficulties 听in听adapting to the changes in听the听trade of听goods听following the听ratification of the UK-EU Trade and Cooperation Agreement听(TCA)听on 1 January 2021.鈥�
罢丑别听蝉耻谤惫别测听
Fieldwork for the鈥痵urvey, which received 1,000 responses,听mainly from SMEs,鈥痺as carried out between 18 and 31 January 2021. Nearly half (47%) of respondents鈥� exported goods or services.鈥��
The survey sought to understand听the听extent听to which听businesses听found it easy or difficult to adapt听to changes in trading goods and/or services and听moving people听in the month since the ratification of the TCA.听Businesses reported听the听highest proportion of difficulties听in adapting听to听changes in trading goods.听
The survey found that:听
- overall, around a third of respondents (30%) reported 鈥痙ifficulties听 adapting to changes听to moving听or trading goods鈥痠n the first month of the鈥痽ear,听while 10% said they had found adapting to the changes easy. 45% said trade in goods was not applicable to their business, and 16% said it was too early to听say;听
- however,听the percentage facing difficulties听in听adapting to听changes in听trading goods听rose for exporters, where half (49%) reported听issues,听as well as听manufacturers, where the percentage听facing difficulties听was more than half (51%);听听
- overall,听14% of firms said that they faced difficulties听in听adapting to changes in the trade of services.听10% said they had听found adapting to the changes easy.听The听percentage听facing听difficulties听rose听for exporters, where 21% reported issues.听
When听asked about the specific difficulties businesses were facing, commonly cited concerns included increased administration,听costs,听delays, and confusion about what rules to follow.听
Need for Action听听
The BCC will continue to support UK businesses through听its trade documentation services and听,听a customs advisory, training and brokerage service delivered through Chambers of Commerce across the UK, and by working closely with the听government.听
The leading business group is calling on the听UK听Government,听and听where necessary with EU partners,听to:听听
- work with us听and the Chamber network听to听identify听the most significant blockages for business and听immediately听publish plans for resolving those听problems;听听
- create听tax credits听allowing firms to offset their听spending on听adaptation to the new UK-EU requirements against their tax bill,听helping听businesses navigate new burdens and requirements听better;听听
- push back听the imposition of听additional听SPS checks听(from April)听and听full customs checks听(from July)听on imports听into the UK. Sanitary and Phytosanitary (鈥楽PS鈥�) checks are听scientific tests on听animal and plant goods; and听听听
- look听at key areas of the听new relationship and work听with EU partners听on easements听to minimise unhelpful burdens,听including on听听aspects of听听Rules of Origin听and VAT.听
Commenting听on听the results, BCC Director General鈥� Adam Marshall 鈥痵aid:鈥�听
鈥淭rading businesses 鈥� and the UK鈥檚 chances at a strong economic recovery 鈥� are being hit hard by听changes at the border.听听
鈥淭he late agreement of听a听UK-EU trade deal听left听businesses in the dark on the detail right until the last minute, so it鈥檚 unsurprising to see that听so many听businesses听are now experiencing听practical听difficulties on the ground听as the new arrangements go live.听听
鈥淔or some firms these concerns are听existential, and听go well beyond mere 鈥榯eething听problems鈥�.听It should not be the case that companies simply have to give up on selling their goods and services into the EU.听Ministers must do everything they can to fix听the听problems that are within the UK鈥檚 own听control, and听increase听their outreach to听EU counterparts to solve听the knotty issues that are stifling trade in both directions.听
鈥淭his situation could get worse if the UK sticks to its guns and introduces听additional听SPS checks in April and full听customs checks on imports听in July. These timescales听need to change 鈥� and听the support available for听businesses who are battling to adapt to new trading conditions significantly increased.鈥澨�
Commenting on听what this means for businesses on听the听ground, BCC Director听of Trade Facilitation and听ChamberCustoms听Liam Smyth听said:听听
鈥淯nderneath the overall figures, firms鈥� concerns fit broadly into three areas.听听
鈥淔irst, difficulties arising from the challenges adjusting to the new arrangements, such as the sheer volume of paperwork and significant new costs of adjusting to those.听听
鈥淪econd, issues about how new rules have been implemented, such as new customs arrangements.听听
鈥淭hird, core provisions of the TCA which are听currently of significant concern to businesses, such as on Rules of Origin and VAT.听听
鈥淭aken together, and on top of decreased revenue and cash flow as a result of the pandemic,听this is a difficult moment for exporters. Some tell us they will respond to the challenges by switching away from international trade or by moving their operations overseas.听听
鈥淭he Government needs to respond to this risk by giving firms tax credits to help with their ongoing adjustment and leaving no stone unturned in educating businesses and removing every barrier they can.鈥澨�
Specific听issues raised by businesses in the听survey听听
Chris Black, Managing Director of Sound Leisure, a UK manufacturing firm based in Yorkshire, highlighted some of the difficulties that businesses across the UK are facing trading across borders post-Brexit:听
鈥淎s a business that exports 65听- 75% of everything that we manufacture and the EU being a big part of that,听we are concerned about tariffs, additional paperwork, and delays at the borders.听
鈥淥nly last week we attempted to ship some machines to Spain and were advised by the freight forwarder to store the machine here for a few more weeks whilst everything calmed down. There is a long way to go before we fully understand what the new normal is.听
鈥淲e are in the perfect storm following the pandemic, where supply chains were hit hard, container ships are all out of position 鈥� in general shipping worldwide is a nightmare.鈥澨�
Jonathan听Kemp, Managing Director of听a听manufacturing company AEV Group Limited, based in听Merseyside with a听plant听in Hungary,听said:听听
鈥淲e export to every continent in the world and have done for听a period of time, therefore we have听employees who are experienced in dealing with exports.听 The issue with the EU-UK听situation is the lack of clarity and preparedness in all areas.听
鈥淭here is no support from government to fund delays or extra stock-holding required to deal with the delays or to assist in extra charges incurred by us or our customers.听 We have another manufacturing site in Hungary (within the EU)听and we are being asked by European customers to move production to this site because they don't want any extra paperwork or costs (even if just cashflow from paying VAT). Our current view is that we will reduce our operation in the UK and invest in EU facilities.鈥澨�
鈥�The increase in paperwork to fill in was an issue for Shropshire Chamber of Commerce member 鈥痑nd 听kitchenware company,鈥疦etherton Foundry:鈥��鈥�
鈥淚ncreased documentation听[means that we]听need to use higher paid staff to complete shipping details.听Loss听of orders due to new duty/customs arrangements;听time (and therefore money) spent resolving European customers enquiries;听cost of implementing new shipping arrangements and delivery charges on our website. A small business like ours does not have the resources to deal with all the extra work.鈥濃��