The big Brexit countdown. What should I do with my goods? - This event will start in a few minutes
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The big Brexit countdown. What This event will start should I do with my in a few minutes… goods?
Agenda and speakers
Remco Buurman
Welcome
CEO at Holland International Distribution Council
▪
▪ Strategic analysis of the latest Brexit developments
▪ Latest news and developments from Dutch Customs Raimond Nicodem
▪ (Short)sea connections between the Netherlands and the UK CEO at Nicodem & Company
▪ Interactive Q&A
Rick Ligthart
Senior Policy Advisor Enforcement and
International Affairs at Dutch Customs
David Besseling
Head of UK Trade at Samskip
Raimond Nicodem Nicodem & Company
Decision Process – Today through 31 December 2020 – The Complexity
Official Brexit negotiating team Must agree on the Proposed
range of issues Deal
UK Official negotiator
Must agree on the UK No time
Governments deal left to pass
Lord David Frost UK Parliament
EU Official negotiator EU27 leaders must Deal must be translated into
rubber stamp the deal 27 different languages
Michel Barnier EU Commission
Today, we are on 17 December 2020
All MEPs will vote on
Time is not only pressing now the deal
You are simply too late to start
dealing with preparations for All 27 local Parliaments will
1 January 2021 need to finally approve
© 2020 Nicodem & Company – A Strategic Eye on the Timeline and Effects of Brexit – sheet 4
The Real Impact In Both Camps Will Be Felt By End of Q1-2021 Onwards
FTA Negotiations Impact low on Eventually, the
businesses and logistics relationship will settle
due to high stocking within 5-10 years
levels of goods
Businesses becoming dependent on the actual flow
of goods. Strategic issues will arise and need to be
answered and dealt with
Transition Phase New relationship – Challenges & Opportunities - Post Transition Playfield
Feb-’20 Dec-’20 Jan-’21 Apr-’21 Dec-’21 Jan-’22 Dec-’22 Jan-’23 Dec-’23 Jan-’24 Dec-’??
Withdrawal Why is this first part green? These are the
Agreement contingency measures put in place by a No Deal
Works
during Tariffs and Brexit has caused a massive change of the
transition Quotas
phase depending
playfield, which requires strategic realignment
Withdrawal Agreement on deal
Keep taking operational measures will not help you in
and its effects will seize
to exist by 31-12-2020 Customs border in-, export and the longer run !
re-import, control &
Too late preparing regulations, safety checks, etc. It will be very hard to have to explain why you did
the next step will apply from 1 January 2021 not prepare in time!
© 2020 Nicodem & Company – A Strategic Eye on the Timeline and Effects of Brexit – sheet 5
Impact Areas 1 January 2021 - Result Of Ceasing Withdrawal Agreement
© 2020 Nicodem & Company – Analysis
Cross-border issues EU Funding
• Full in- and export regulations will apply on all goods
• Return goods will require re-import procedure Impact on access to EU funding in international cooperation:
• Businesses dealing with cross-border transit will face • between the industry, research institutes and Governments
other regulations which will develop over time • On innovations, R&D and new technology
Regulations Cross-border data flows (GDPR)
• Regulatory burden on businesses will rise • Before it becomes “adequate jurisdiction” for businesses transferring
• Compliance checks will increase data, this may take additional time and resources
• Applying for the correct documentation/licenses will take longer • Businesses need to consider what alternatives could be implemented
Let’s not make it too complicated here and take Cross-border issues only…
• Rules of origin will have to be considered to ensure adequate protection of data being transferred from EU to UK
Employment requirements Market and commercial issues
• Free movement for all EU citizens is over. Instead, any UK-EU trade • Many businesses are already experiencing changes in the labor market
agreement is likely to reflect the limited regime for mobility of and currency effects
people under the EU’s recently negotiated trade deals such as (CETA). • Cost and availability of certain goods and services will change
substantially
Passporting, Mutual Recognition, Permits
and Certification Branding, designs and trademarks
• UK based banks require an EU-based and -regulated entity to keep • Existing rights will be severely affected by Brexit
selling services to EU domiciled clients • Those rights will need to apply for separate UK trademarks as well as
• Medicine approvals and certification will not be valid from day one EU rights
A few high impact examples will follow
Supply Chain Working capital
• UK is not be able to produce and deliver products and services under Working capital or cash occupied in operations will suffer tremendous risks:
EU conditions • Advanced VAT payments at the borders
• This will have an immediate effect on many supply chains • Prepayments on goods, etc.
© 2020 Nicodem & Company – A Strategic Eye on the Timeline and Effects of Brexit – sheet 6
Deal Or No Deal: The Differences Are Not Excessive For Border Control…
Most of the post-Brexit effects for Barrier at Border Impact by Deal Impact by No Deal
Customs per 1-1-2021 are known Customs Declarations YES YES
now for many months Safety Declarations YES YES
Security Declarations YES YES
Preparing for those has been (and
still is) inevitable Regulatory Checks YES YES
VAT YES YES
Waiting for the last-minute Portbase Entry YES YES
clarifications will not help you
Tariffs Maybe YES
Quotas Maybe YES
Depending on © 2020 – Nicodem & Company
outcome negotiations
It mainly focuses on UK and EU
Tariffs and Quotas
…Though, The Impact On Both Scenarios Is Massive
© 2020 Nicodem & Company – A Strategic Eye on the Timeline and Effects of Brexit – sheet 7
The UK Has Developed ‘Operation Brock’ To Try To Prevent Border Clogging
Dixies Issues:
!
- Personal security
- Safety of cargo
- Sanitary capacity
- Errands
M26 Manston Airfield The M20 will be set
aside for lorry parking
M20
When M20 becomes full of parked vehicles
waiting to cross the Channel, traffic will be
diverted to Manston Airfield to be parked
there
© 2020 Nicodem & Company – A Strategic Eye on the Timeline and Effects of Brexit – sheet 8
The UK Ports Are Not The Only Ones Suffering From The Brexit Impact
Calais has an additional thread on the
traffic Jams:
Illegal Immigrants wanting to enter the UK
Calais, France Zeebrugge, Belgium
Stalled trucks are an easy object to break in
and hide into
This causes dangerous situations for drivers,
trucks and their cargo…
Massive backup of trucks
entering the Channel Tunnel, or
entering the ferry terminals to …consisting of damaged goods, liability and
Dover and Felixstowe even human trafficking
© 2020 Nicodem & Company – A Strategic Eye on the Timeline and Effects of Brexit – sheet 9
Do Not Underestimate The Impact, Even If Your Operations Are In Shape
This truck carries all the necessary Prevent as much as possible you will be
documents and licenses liable for:
It still will be jammed up, facing - Delays as result of border checks, regulations,
serious delays etc.
- Infringement of the regulations
- Decay of goods
A two-minute delay at the border will jam-up traffic for approx.
- Even the extra cost of delay for the truck
27 kilometers at Felixstowe, Dover, Calais or Zeebrugge driver (meals, hotel), etc.
This all can have serious consequences:
No necessary documents and
licenses on specific cargo? - Losing customers,
- Steep fines or charges,
- Paying upfront VAT-money,
- Or worsted case bankruptcy
Whole truck being put aside at the border parking, awaiting
documents to be produced. Documents not ready in 24 hours:
Leave parking !
© 2020 Nicodem & Company – A Strategic Eye on the Timeline and Effects of Brexit – sheet 10Enforcement Of Regulations Will Raise To An International Issue
From day One
UK enforcement and
Over 200 EU and EEA nations 100
20 ! response capabilities
suffering manpower
fishing vessels could enter Scottish waters
illegally or already be fishing (Mackerel, Salmon)
crisis, and are currently
in UK waters scaling up
15 4 extra vessels are put
in service
N/Irish waters
This is likely to cause anger
and frustration in the already
heated UK and EU catching
sector 130
English waters
This could lead to: (Cod, Herring)
• Clashes between fishing Civilians and Army to
vessels of UK, F, NL, B help understaffed
40
Navy monitor Irish
• Overstressed Fisheries Welsh waters waters post-Brexit
(Prawns)
Monitoring Centre (FMC)
© 2020 Nicodem & Company – A Strategic Eye on the Timeline and Effects of Brexit – sheet 11Besides Cross-Border Issues, There Will Be A Lot More Impacts !
© 2020 Nicodem & Company – Analysis
Cross-border issues EU Funding
• Full in- and export regulations will apply on all goods
• Return goods will require re-import procedure Impact on access to EU funding in international cooperation:
• Businesses dealing with cross-border transit will face • between the industry, research institutes and Governments
other regulations which will develop over time • On innovations, R&D and new technology
Regulations Cross-border data flows (GDPR)
• Regulatory burden on businesses will rise • Before it becomes “adequate jurisdiction” for businesses transferring
• Compliance checks will increase data, this may take additional time and resources
• Applying for the correct documentation/licenses will take longer • Businesses need to consider what alternatives could be implemented
• Rules of origin will have to be considered to ensure adequate protection of data being transferred from EU to UK
Employment requirements Market and commercial issues
• Free movement for all EU citizens is over. Instead, any UK-EU trade • Many businesses are already experiencing changes in the labor market
agreement is likely to reflect the limited regime for mobility of and currency effects
people under the EU’s recently negotiated trade deals such as (CETA). • Cost and availability of certain goods and services will change
substantially
Passporting, Mutual Recognition, Permits
and Certification Branding, designs and trademarks
• UK based banks require an EU-based and -regulated entity to keep • Existing rights will be severely affected by Brexit
selling services to EU domiciled clients • Those rights will need to apply for separate UK trademarks as well as
• Medicine approvals and certification will not be valid from day one EU rights
Supply Chain Working capital
• UK is not be able to produce and deliver products and services under Working capital or cash occupied in operations will suffer tremendous risks:
EU conditions • Advanced VAT payments at the borders
• This will have an immediate effect on many supply chains • Prepayments on goods, etc.
© 2020 Nicodem & Company – A Strategic Eye on the Timeline and Effects of Brexit – sheet 12Example: Air Travel Might Be Hampered After 31 December 2020
No flights would take place between the UK and the EU as WTO does not
offer any fallback for air services
Solution: Unilateral contingency measures or specific EU-U.K. partnership in aviation
Comprehensive agreement on aviation would require the UK to meet certain level
playing field provisions, on state aid, labor laws, the environment and competition – The sticking points !
British airlines will no longer be under the jurisdiction of the Court of Justice of the EU or under the
supervision of the European Union Aviation Safety Agency (EASA)
UK operating licenses will no longer be valid in the EU
Solution: Britain-based air operators will have to move their principal place of business to an EU country and
be majority EU-owned (51%+) to continue operating in the EU
Certificates, licenses and registrations that were issued by the U.K.’s Civil Aviation Authority on behalf of EASA
for pilots, aircraft and aircraft parts will become invalid
Solution: Would have to be revalidated by an EU member country
© 2020 Nicodem & Company – A Strategic Eye on the Timeline and Effects of Brexit – sheet 13The Traditional UK Steppingstone Will Make Less Sense, A New One Might !
Far East For centuries, the UK has been serving as the
Japan main hub to continental Europe Based on:
Australia
Ease of language and ease of use, many non-Europe
Canada
United States of New countries used to use the UK as traditional
America Zealand steppingstone to the EU mainland
South America
X Those benefits will seize to exists at the UK’s exit on 31 December 2020
Strategically review location of your steppingstone
X =hampered
severely
trade flow The golden rule is to base the representation within your main
market / market potential. In short:
• Whole of the EU and Non-EU markets:
EU representation
So, depending on: (Be able to benefit from existing EU FTAs. Based on MFN,
there is no disadvantage)
- Your analysis of what the size determines where
of your foreign market is to (re)locate your • UK home market and Non-EU markets:
- What your expansion plans foreign UK representation
(Only existing and future UK EPAs will apply)
look like in those markets… representation to
© 2020 Nicodem & Company – A Strategic Eye on the Timeline and Effects of Brexit – sheet 14Opportunity For Deep Sea EU Import To Short Sea Export UK
The UK will lose its beneficial
Short Sea Links hub capabilities, not be able
to carry or issuing:
- CE-mark on goods
- Licenses and certification
(chemicals, medicines, etc.)
Deep Sea Hubs - Passports (banks, brokers,
insurances, etc.)
UK transit to EU will - Other European trademarks
have negative both
operational and
strategic effects AMSTERDAM At the same time
- Brexit effects are mutual
ROTTERDAM - Ability to bypass Chunnel
and Ferry obstructions by
Short Sea container hubs
- Connections to multimodal
abilities, creating less
dependency from lorry
traffic at the borders
© 2020 Nicodem & Company – A Strategic Eye on the Timeline and Effects of Brexit – sheet 15Top Attention Points For You As Business (Both UK and EU)
Operational Sufferings Strategic & Tactical Opportunities
Border traffic jam-ups Analyze opportunities and benefits
1 You, as many others, will be jammed up in 5 Strategic analysis of the new playfield (it will
border traffic, independently of your never return to the pre-2021 phase), will shed
expertise light on the new opportunities and benefits
Chaos, loss of permits and licenses Analyze your own supply chain
2 UK will lose its ability to carry the CE-mark 6 In the new situation, look for:
Be careful: you are liable - Opportunities, Bottlenecks
- Special actions required
Revisit General Terms & Conditions More importantly, analyze your
3 Your T&Cs will be affected (INCO-terms will
likely force you anyhow) in your dealings 7 clients supply chain
If your client changes his business concept
with UK/EU firms vice versa on in-, export,
or routing, you might find yourself in
re-import or delivery of goods or services.
limbo. Better to walk in front of the troops
Request EORI numbers (EU and UK) Look for Turnarounds
Mandatory EORI numbers for both EU and
4 UK (yes, they are different). Requesting now 8 UK exports are dominated by services,
currently less on goods. This presents
puts you over the line of 1 January 2021 opportunities for both sides
© 2020 Nicodem & Company – A Strategic Eye on the Timeline and Effects of Brexit – sheet 16To Serve Clients At Best, You Really Need To Learn About Them Analyze Impact Areas
(Both UK and EU)
Example: Board /
2
Client Company Senior Management Based on Supply Chain
(primary processes)
3 Write Action Plan
Core services
Supply Chain
Supply Chain
4 Execute Action Plan
Resource With your knowledge about your clients, add
constraints immediate value to them in this far- reaching
consequences post-Brexit playfield
Scarce / specialist
Mass / volume Finance Risk Tech HR Etc. Otherwise… your competitor will !
Example Functions in secondary (supporting) processes
Instability is competitors Walhalla
1 Analyze Organization & Operations
© 2020 Nicodem & Company – A Strategic Eye on the Timeline and Effects of Brexit – sheet 17Last, But Not Least… You Are Not Alone !
Work together with your clients and
partners on this complex value chain
It does also not harm to get professional insight on this
equally complex work field
Building on expertise is no shame and a lot cheaper than to do everything yourself !
© 2020 Nicodem & Company – A Strategic Eye on the Timeline and Effects of Brexit – sheet 18Closing
Our logo is a chart divider Your partner on
Brexit issues !
Determining distance, charting the right
course in combination with unpredictable CONTACT
elements and sudden situations
www.nicodem.eu
It means we feel comfortable in +31 73-549 5010
info@nicodem.eu
unchartered waters
Meidoornstraat 9
The post-Brexit effects will fall into the domain of inevitable change NL-5482 BA SCHIJNDEL
and large impacts, irrespective of the outcome of the negotiations The Netherlands
Raimond Nicodem, CEO
That is, why we love to work with you and turn the Brexit effects into r.nicodem@nicodem.eu
success for your business ! +31 6-53 367902
© 2020 Nicodem & Company – A Strategic Eye on the Timeline and Effects of Brexit – sheet 19Rick Ligthart Dutch customs
Program The impact of Brexit on free movement of goods between EU and UK The role of Customs Administration of the Netherlands Preparations done by Customs Administration of the Netherlands The Netherlands as your HUB for distribution to the EU and the UK
What does Brexit mean? What does this mean for trade?
Customs formalities for imports,
The United Kingdom (UK) left the EU on 31
exports and transits
January 2020.
The UK is no longer part of the internal
Possible levying of customs duties
market and customs union, the UK is a
and trade policy measures
third country.
The effects of this will become clear at the
Non-tariff trade barriers (such as
end of the transitional period, the free
veterinary and phytosanitary
movement of goods between the UK and
requirements, product
countries in the EU ends.
requirements, and checks on waste
streams)Customs supervision Trade policy Weapons and
arrangements Ammunition
Medicines
IPR/counterfeit goods
Explosives for civil use
Transport of dangerous goods Opium Act
Sanctions
Strategic Goods Liquid assets
Strategic services Vehicle crime
Drug precursors
Cultural and Heritage
goods Precursors for
Torture explosives
Instruments Economy Security
Animal feeds
Ozone and F-Gases
Crop protection
products CUSTOMS
Composition of fuels
Veterinary
and biofuels
Flora and fauna Safety Environ
Phytosanitary
- ment Import and export of
Product safety (food safety
radioactive and nuclear
and consumer products)
materials
Tax & Duties
Cat and dog fur Environmentally
Organic agricultural hazardous substances
products Import and
Excise duty Waste substance
IIUU (fish) export duties
movements
FLEGT Turnover tax on imports
and exports and coal tax
23Preparations by Customs Administration of the Netherlands
Ready and prepared for Brexit
Recruted, trained additional staff
Additional resources readyWhat doesn’t change! The Netherlands is still a member of the EU Union Customs Code is known legislation to you The option to use the NL as your HUB for distribution to the EU
ENS (S)DTO (S&S)
3 customs procedures: Special procedures:
• Free circulation
• Export A: transit, external and internal;
• Special procedures: B: Storage and Free Trade Zones;
C: Specific procedures, temporary import
or end use:
D: Processing; inbound and outboundIt is a joint responsibility to prepare
David Besseling Samskip
30 About Samskip With the head office in Rotterdam and offices in 35 countries across Europe, America, Asia and Australia, we offer transport and related services by land, sea, rail and air, around the world, focusing on cost efficient, reliable and environmentally friendly solutions.
31
Core Features
We provide door to door and quay to
quay services across our network..
We connect all markets through one seamless
system
..using different modes and types of
equipment..
We operate vessels, trains, barges and trucks
..to serve the market-specific needs
of customers
we include regional products that support the core
business32
Snapshot
A Global Transport Solution Provider With Offices in 35 Countries
1750 employees 17,000 containers
850,000 units a year
750 trucks 1,500 trailers
Multimodal Fleet 22 Vessels
Vessels | Barges | Trains | Trucks
Geared | Reefer | LNG | Container33
80+ rail departures 50+ short-sea departures 30+ barge departures
per week per week per week
140.000 sqm rail terminal 21 terminals 50+ vessel terminals
Duisburg, Germany cold storage and rail throughout our network34
The Largest European Network
Connections
High frequency services connect destinations across
Europe, the Baltic States, Russia and Central Asia
Solutions
Door-to-Door and Quay-to-Quay
Multimodal
Combined transport using a wide range of vessels,
trucks, barges, trains and containers.35
Equipment
The right equipment for your cargo! Different routes, cargo types and regulations require specialized high quality equipment.
45ft PWHC | 40ft PWHC 45ft PWHC Reefer 45ft PWHC Ventilated 45ft PWHC Curtain-Sider
40ft ISO |20ft ISO | 40ft HC ISO Reefer 40ft Open Top | 20ft Open Top Flatrack 20ft | 40ft | 40ft HC Flatrack 40ft A-Frame36
Ireland & United Kingdom
Port Frequency Transit Time
Hull 5x per week 2 - 3 days
Tilbury 3x per week 2 - 3 days
Grangemouth 1x per week 3 - 4 days
Belfast 1x per week 5 days
Dublin 2x per week 4 days
Cork 2x per week 5 days
Waterford 2x per week 5 days
Hull 3x per week 2 - 3 days
Tilbury 3x per week 2 – 3 days
Grangemouth 1x per week 3 – 4 days
Hull 3x per week 2 - 3 days
Grangemouth 1x per week 3 – 4 daysWhy Multimodal? A solution to Brexit challenges ✓ Avoiding road and terminal congestion ✓ Mitigating driver shortage issues ✓ Reducing CO2 emissions ✓ On time collection and delivery performance ✓ Dedicated short sea terminals ✓ Wide geographical coverage ✓ Efficient storage options ✓ In-house customs clearance capabilities
38 Thank you for your attention
Thank
you for
your
attention
Q&A
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