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Under 8% of supply chain professionals prepared for Brexit changes

Photo: DP World DP World Southampton March 2021
Further regulatory changes related to Brexit have come at a difficult time for logistics companies, according to Zencargo.

A survey by the logistics service provider found 7.4% of respondents felt prepared for 2022 Breit customs rules changes, one third of respondents had not explored the subject at all, and 43% are currently discussing how to respond to the changes.

The 2022 regulatory changes came into effect in January 2022 and relate to declarations, laws of the origins of goods compliance, VAT and customs valuation.

The changes came as companies were still adjusting to Brexit changes introduced in 2021, said Zencargo CEO and co-founder, Alex Hersham.

“They are coming at a time of unprecedented market volatility, created by labour shortages, the increased cost of shipping, the exponential increase in freight rates, and the ongoing threat of COVID-19. We predict the introduction of the 2022 easements will have an even greater impact than those implemented last year,” said Hersham.

Companies can take steps to mitigate the impact of changes, including complete, real-time supply chain visibility, and clear communication across the business as to how logistics are affected by the changes.

“Despite how much money is tied up inefficient supply chain processes, we see that supply chain teams are often cut adrift from other departments, which creates confusion and misalignments. During this current turbulent time, it’s imperative that teams are all talking to each other, and that department leads collectively discuss and calculate the monetary impact of these Brexit-related changes. This can be achieved by having all suppliers, stakeholders and partners on one digital platform, to optimise internal communication,” said Hersham.

While much work remains to be done to handle regulatory changes over the past two years, more are on the way, including a move to the Customs Declaration System and tightening product controls.

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