The director of a British warehousing company with more than 20 years of experience has told EU traders and transport companies how they are retreating into UK business because they are being asked to guarantee tens of thousands of pounds to cover potential charges for VAT or when they arrive. In the UK.
Colin Jeffries, who runs Key Cargo International in Manchester, said Brexit and EU transport companies, which previously provided shipping services to small and medium-sized companies, did not need a financial guarantee before deciding they did not want an additional financial burden.
“We have received persons trying to bring textiles from Italy, but we are informed that there is no drag on it. No one is willing to touch anything with these guarantees. In Poland, we are trying to get masks for PPE in the workplace and no one can bring them.”
Jeffries, who has been in the freight forwarding business for 24 years, said his business almost came to a standstill last week due to a sudden set of trade restrictions on January 1st.
He called the EU’s attempt to bring the British to Britain a “complete massacre there” because they underestimated the attractiveness of so-called T1s, which now apply to goods exported to the UK.
A lorry with $ 200,000 worth of cargo will only require $ 40,000 in cash or a D1 financial guarantee document, which, he said, is a significant burden for transport companies with multiple trucks going to the UK.
Prior to Brexit these guarantees were not required for goods coming from the EU.
“Many agents completing T1s have lost the guarantee funds and they need to get in place,” he said.
He spoke in the second week of January as data showed that a growing number of freight groups had rejected contracts to move goods from France to Britain.
Transporian, a German software company that works with 100,000 logistics service providers, said shippers had turned down work to move goods from Germany, Italy and Poland to Britain.
In the second week of January, the UK’s rejection rate for traffic rose 168% in the third quarter of 2020, doubling in the first calendar week of the year.
Jeffries said how complicated it is to export to the UK.
Although goods could have traveled through British ports before Brexit, now EU suppliers, like UK exporters, had to deliver paperwork before export in addition to the D1 financial guarantee.
In addition to the customs notification and D1 financial guarantee, they must provide a REX (Registered Exporter Organization) document to confirm the appearance of the product, which will determine whether the fees for entering the UK are applicable or whether they are subject to optional treatment. .
Jeffries has repeatedly refused to go to freight forwarders or customs agents and advised businesses to prepare them for Brexit.
“They don’t publish freight forwarders with a magic book,” he said. “A lot of people think we have the knowledge because the government tells us to go to a freight forwarder or customs agent. But we have not been given any insights. Like everyone else we are exploring this. You have no time to test. ”