Around 30% of UK-based importers quizzed are not ready for the new string of Brexit customs rules set to come into effect on January 1, 2022, a new report from the Insitute of Directors (IoD) suggests.
EU customs. Credit: Novikov Aleksey / Shutterstock
Credit: Novikov Aleksey / Shutterstock
The new rules state that companies will no longer be able to delay making customs declarations on goods. Previously there was a six-month grace period which means companies will instead have to make declarations and pay relevant tariffs at the point of import, which has sparked concerns that further delays caused by this change could further disrupt supply chains.
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There will also be pre-notification requirements for goods and physical checks on products of animal origin.
The IoD polled nearly 600 business leaders and found that only 19% described themselves as "very prepared" for the changes.
Over one-third of small businesses surveyed and nearly a quarter of the large businesses surveyed stated they were not ready for the customs checks.
“In under 3 weeks’ time, significant changes to our customs arrangements are going to be introduced, for which a large portion of businesses are either unprepared or simply unaware", said Kitty Ussher, a chief economist at the IoD.
"This will exacerbate existing supply chain problems, leading to further congestion at ports, as well as extra costs from accidental non-compliance for many businesses.
“The Government needs to ramp up an awareness and advertising campaign around these changes, simplifying the guidance, so that all importing businesses feel confident they know how to keep supplies flowing into the new year".
In another poll of its members, the IoD found that 57% of those quizzed found the new rules were not applicable to them.
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