It is still unclear when London and Brussels will reach an agreement about the conditions of separation. A transition period until 31 December 2020 has been announced. Martin thinks this time should be used to prepare for the changes. Although it seems to be a ways off, the question is whether it will be possible to successfully process all the changes in automation on time.
Martin Meacock of Descartes.
The clock is ticking
The Brit pointed out two crucial problems that need solutions. The first is the borders between Ireland and Northern Ireland, and Gibraltar and Spain. No consensus has been reached over either of these. All the is sure is that EU does not want a physical control post at the Irish border. Taking the history of this island into account, this border must be kept as open as possible. Martin outlined the framework by saying, "The Brits do not want to be part of the customs union and the internal market. That is where they draw the line."
There are various options for organising the border controls and the associated customs formalities. One solution has more consequences for logistics than the other. The burning question with all of them remains: is there enough time to get the systems in place? In principle, from 29 March 2019, Brexit will be a fact. There might be a transition period up to 2021. "Many systems communicate well with each other. However, no-one wants to change things while there is still so much uncertainty."
Norwegian model a solution?
Martin used the Norwegian model to illustrate the challenges in the area of automation. There is extensive cooperation between customs officials at the Norwegian/Swedish border. This results in a relatively quick thoroughfare of traffic. According to Martin, this is thanks to the Norwegian and Swedish shared culture and language. Something that is of a more sensitive nature between the British and French, for example.
Martin used the Norwegian model to illustrate the challenges in the area of automation. There is extensive cooperation between customs officials at the Norwegian/Swedish border. This results in a relatively quick thoroughfare of traffic. According to Martin, this is thanks to the Norwegian and Swedish shared culture and language. Something that is of a more sensitive nature between the British and French, for example.
The customs officials at the Norwegian/Swedish border use both customs systems to input data. This could be an option for the Irish/Northern Irish border. However, to the East, countries like Belgium and the Netherlands, and their systems, border the United Kingdom. There is also Denmark to the North. British customs officials will then have to be able to use all these other systems. When it comes to automation, the systems can be set up in such a way as to be able to communicate with each other. Data must, however, be available in the same format.
Martin advised companies to orientate themselves to which data is necessary to keep doing business. Which tariff codes and tax rates apply? Which other formalities are needed to export to non-EU countries? Getting the answer to this is the first step toward preparing for Brexit.