In spite of everyone pointing to a total lack of investment or planning for our post Brexit future there is still talk of no deal being better than a bad deal. Rees-Mogg repeated this only the other day and you can see leave voters saying the same thing on social media any day of the week.
But as time goes by with no sign of any planning for new customs arrangements the no-deal mantra becomes less and less of a threat. For it to be meaningful, the British government would have had to seriously prepare for the practical reality of the UK becoming a third country. The EU can see we are doing nothing and hence their position grows stronger every day.
Compare our lack of any planning to what the EU are doing with their regular postings on this website HERE advising importers and exporters of the steps they need to begin taking to plan for Brexit. The latest is a "Notice to Stakeholders" dealing with customs and indirect taxation (VAT) matters when the Withdrawal date occurs. Among the points:
Goods which are brought into the customs territory of the EU from the United Kingdom or are to be taken out of that territory for transport to the United Kingdom, are subject to customs supervision and may be subject to customs controls in accordance with Regulation (EU) No 952/2013 of 9 October 2013 laying down the Union Customs Code.7 This implies inter alia that customs formalities apply, declarations have to be lodged and customs authorities may require guarantees for potential or existing customs debts.
Authorisations granting the status of Authorised Economic Operator (AEO) and other authorisations for customs simplifications, issued by the customs authorities of the United Kingdom will no longer be valid in the customs territory of the Union.
The AEO point is interesting. These are companies that export and carry the internationally recognised AEO status effectively confirming they are legitimate businesses and have approved systems for handling customs and compliance procedures. Note the EU will not recognise our AEO companies after Brexit. The Institute of Export and International trade (HERE) says this:
"Although the initiative has been in place for several years, the UK lags firmly behind other EU countries, with just 537 approved AEO registrations compared to Germany, which has 6031, the Netherlands with 1514 and France who have 1438 approved registrations (figures correct as at Feb 2017)".
So, from being just a laggard we will drop further behind and reach zero after Brexit. Our exporters will have to start from scratch. Global trading giant? Don't make me laugh.
Journalists and politicians talk of being shackled by the EU but the harsh reality is we are the elderly, obese, asthmatic smoker trotting at the back and shouting about the Olympic class front runners streaking ahead and somehow holding us back.
