Dr Karen Jackson, Reader in Economics and Head of the School of Organisations, Economy and Society, has written an article for The Conversation about what the set of Brexit changes mean for businesses from January 1 2022.
The article examines what the customs changes will mean for UK exporters and importers this year and notes the lack of clarity that the UK government has provided to businesses about these changes over the past few months.
Speaking about what the changes will mean for UK exporters, Dr Jackson writes: “During 2021, exporters have been permitted to provide proof of the origin of goods after they have been exported, so long as they made a customs declaration at the border. But from January 1, when UK exporters can’t prove the origin of a product at customs, the EU customer will have to pay the full import tariff (and vice versa).
For example, a French importer bringing agricultural goods from the UK would incur an average non-preferential tariff of around 11%.”
Dr Jackson notes that importers will now have to make full customs declarations having previously been exempt and this will also bring new challenges. She explains: “This means that on top of all the supply-chain problems that manufacturers have been enduring in recent months, they’ll now face the double whammy of full customs controls for the first time. If businesses do not fulfil the new requirements, then goods won’t be able to leave the port.”
On the government’s lack of clarity around the changes, Dr Jackson concludes: “UK businesses have already had to cope with declining trade as a result of Brexit. And don’t forget that all this is happening against a backdrop of transitioning to Liz Truss becoming the new Brexit minister, while remaining as foreign secretary. For a government that was elected on the motto of “getting Brexit done”, it is perhaps not so surprising that so little has been said about the upcoming changes.”
Read the full article on The Conversation's website.
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