As the U.K. prepares to implement its new Border Target Operating Model (BTOM) on January 31, British businesses are warning of a fresh wave of post-Brexit trade disruptions. The delayed imposition of checks on E.U. imports by the U.K., in stark contrast to the immediate enforcement by the E.U., has set the stage for potential port delays and challenges for businesses on both sides of the Channel.
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British businesses are expressing concerns about the readiness of E.U. exporters for the upcoming U.K. customs changes. The delayed imposition of checks on E.U. imports by the U.K. has left exporters scrambling to meet new requirements, potentially causing disruptions in the supply chain.
Make U.K., representing manufacturers, revealed that 90% of surveyed firms still face challenges in doing business with the E.U. Customs and clearance procedures emerged as the significant barriers, indicating a persistent struggle for businesses navigating the post-Brexit landscape.
While larger E.U. firms are expected to cope with the new rules, smaller entities, especially specialist food exporters, may need help. Marco Forgione, Director General of the Institute of Export & International Trade, warns that some smaller businesses might find it too complicated to trade with the U.K., leading to potential scarcity and price pressures.
William Bain, head of trade policy at the British Chambers of Commerce, highlights the risk of congestion and delays when checks start in April. With Britain importing a significant portion of fresh food from the E.U. during the winter months, concerns arise about the impact on the supply chain and the government’s enforcement strategies.
Despite calls from the Dutch Association of Wholesalers in Floricultural Products for a delay in U.K. border checks until 2025, the U.K. government remains steadfast in implementing the changes by April. Businesses hope for a measured approach from the government to avoid potential delays and shortages, especially with a national election looming in 2024.
As the clock ticks down to the implementation of the BTOM, businesses and policymakers are grappling with the potential repercussions of the new customs landscape, hoping for a seamless transition and minimal disruptions.
