What would a Brexit ‘No Deal’ Mean for You and for Couriers Shipping Products Across and Outside the UK?
The UK is due to leave the EU on 31 October 2019.
We have yet to see a Withdrawal Agreement passed by UK parliament and if this remains unchanged then we will exit the EU without a deal.
And now, with Boris Johnson, we have a new Prime Minster who is perfectly happy to leave the EU with a ‘No Deal.’
What will a No Deal Brexit mean to courier services domestic and commercial transporting goods across and outside the UK?
Well, at the moment if you want to transport goods outside the UK then, aside from your normal postage costs then there are no extra charges.
Like every other reputable B to B and B to C courier service in England Parcel Ex are eager to see what our government can do to facilitate a pain free Exit ‘Divorce Settlement’ with the EU.
Parcel Ex have been working around the clock to reduce the possible negative financial impact of a Brexit No Deal on behalf of our clients.
So, let’s assume Boris doesn’t pull it out of the fire and we have a no deal, what do we know and what can we surmise?
To Begin With, Many Deliveries Would Stop
Around 500,000 parcels are sent across the border into to UK EVERY DAY. As it stands, they don’t have to pass through customs and the delivery (Depending upon your courier service) is fairly swift.
With a Brexit No Deal, the impact would be akin to a huge traffic pile up on a major road forcing all other road users into a complete stand still. Parcels would suddenly ALL be subject to customs and VAT charges. The parcels would stay there till the extra charges have been paid (By you if you are receiving the items).
Even after they have been paid you can still expect a significant delay.
It’s Not All Bad…
It seems like I’m being the voice of doom and gloom. So, on a positive note – It’s a really sunny day today, birds singing in the trees etc…
Right back on to it.
Ports and Motorways will Experience Significant Delays
Lorries bound for the EU will need to complete customs declarations, and certain goods will also require physical checks. This will almost certainly lead to significant delays.
Crucially, among those goods that will need to be checked are foodstuffs and chemicals – arguably goods for which time sensitive delivery is an important factor.
Kent County Council says it has employed extra staff and stockpiled supplies in preparation for SIX MONTHS of disruption in the event of no deal.
When we are no longer part of the EU, and in the event of a ‘No Deal,’ sending packages to any EU country will mean that we have to pay the same charges and fill in the same customs, border control paperwork.
For items worth less than £270 a CN22 form will need to be filled out and attached to the parcel.
For items worth more than £270 a CN23 form will need to be filled out and attached to the parcel.
For more information and to download the forms click here:
Regardless of value, if you are using ParcelForce to transport your goods then you will also need to fill in a CP72 form.
Increased Food Prices
Increased import taxes and delays will almost certainly mean an increase in our food bills (Particularly with fresh fruit, vegetables and meat produce).
Supermarkets have warned of empty shelves and increased prices, meaning the cost of a healthy lifestyle will be more than many of us can afford.
It is also estimated that following a no deal the increase in the cost of our basic essentials will also be met with the price of the pound going down.
At the moment around 30% of our food comes from the EU. A ‘No Deal’ means that we will not be given any preferential treatment in the purchase of these goods and this is quite apart from customs and VAT.
Sainsbury’s has said that October would be the worst time for the UK to exit the EU with a No Deal:
“Warehouse capacity is already strained by the seasonal stock build-up ahead of Black Friday and Christmas, limiting supermarkets’ ability to store goods ahead of Brexit.”
Though the Supermarkets are doing what they can to stockpile goods, fresh fruit, vegetables and meat produce naturally cannot be stock piled for any significant length of time.
Travelling and Driving in the EU.
Guess what, more paperwork and increased insurance prices are likely:
You’ll need a ‘Green Card’ to prove your insurance will cover you to drive in the EU. This may come at an extra cost.
You’ll also need a GB sticker.
You may also need an ‘International Driving Permit’ for some countries.
The Choice That Boris has…
Well, our new Prime Minster has already stated that we will be leaving the EU on the 31st with or without a deal. He does however still have the following options:
- Leave the EU with a deal that prevents the pound going down and our economy significantly suffering.
- Leave the EU without a settlement. This means we would have a ‘No Deal’ and the points raised above would be an absolute reality.
- We do an about change and remain part of the EU.
I say Boris has the choice, but if he is acting as a spokesperson for us, the people of England then I suppose it is we who have the choice, and our voice should be heard.
I have friends who voted to remain and those that voted to leave the EU in the first instance.
Of those who voted to leave, many of them feel cheated. They either voted to leave because they wanted to help the NHS (The money that the government promised to the NHS was immediately retracted once the vote was taken) or they were not made aware of the impact this would have on our pockets and the overall impact on our economy.
I’ll put the link here if you would like a second vote. Regardless of what happens, Parcel Ex will be doing everything we can to reduce the financial impact that a Brexit ‘No Deal’ will have on you.
If you’d like a quote for a delivery in the UK click below and we’ll get back to you as soon as possible.
Till next time…