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Courtesy of the Sunday Times - confirming what many of us have been saying all along.
Customs brokers are bracing themselves for a surge in business after Brexit amid warnings that it will be almost impossible to meet demand if Britain crashes out of the European Union without a deal.
Trade specialists believe a hard Brexit would generate “far more business than we could ever handle” after Britain’s first official guidance urged companies to turn to brokers and freight forwarders.
“We’re going to be rather like a guy selling ice cream in a park with 10,000 people,” George Baker, chairman of a Felixstowe-based brokerage of the same name, said. “It’s going to be almost impossible to satisfy the demand.” Technical papers published on Thursday recommend that companies trading with the EU consider renegotiating contracts, investing in warehousing and buying customs software in the event of a no-deal Brexit. To help reduce disruption, businesses have also been advised to consult brokers, which help navigate much of the red tape that comes with trade, and forwarders, which receive and ship goods on their behalf.
Ministers were accused of issuing “rather patronising” advice to industry, however, after encouraging companies to recruit specialists which already handle much of Britain’s trade. Bryn Ward, managing director of UK Customs Solutions, said: “If it transpires that there is a virtual wall put up with the EU, then potentially I’m going to need a load more staff in order to deal with the extra declarations.”
He thinks it is unlikely that companies will be able to find enough suitable staff. “To be officially recognised as trained in this industry, it’s three years of on-the-job experience,” he said.
Describing the level of technical knowledge required, Paul Burness, managing director of HICS Worldwide, compared starting out with “working on your Ford on a Sunday morning and then going to a Formula One car”. Unlike markets such as the United States, customs brokers in the UK and across the EU are not required to hold an operating licence. Mr Ward will decide whether to hire more people later this year, but he said that even with more staff “there will be a line for us when you physically can’t take on the next customer”.
As business awaits confirmation of what Brexit will mean for British trade, specialists are doing all they can to build capacity come what may. Brokers dismissed advice for traders to buy customs software and arrange authorisations themselves, insisting this would be unaffordable and complex for all but Britain’s largest businesses. “It’s almost irresponsible to suggest the guy who brings in a handful of containers a month does this by him or herself,” Mr Baker said. Industry leaders also criticised a lack of detail in last week’s papers, with the British International Freight Association, which represents forwarders, highlighting questions over additional costs and government resources.
Robert Keen, its director-general, said that most visible trade between Britain and the EU is handled by freight forwarders and logistics professionals, who are aware of the concerns. “What members actually need is clarity on the arrangements that will be in place in the event of a no-deal scenario,” he said.