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Only One Sixth of Firms That Need EORI Have Signed Up So Far.
UK – EUROPE – With just over a month to go before Britain exits the European Union the government has published a report 'Implications for Business and Trade of a No Deal Exit' which makes much of the fact that, despite dire warnings that importers should prepare for this scenario, only around one sixth of companies which should have registered for an Economic Operator Registration and Identification (EORI) registration number, have actually done so.
Estimates of the number of companies which will need to register in order to make customs declarations post-Brexit stand at around 240,000 and the report goes on to say that the UK Government has still not published its intended tariffs for imports into the UK post-Brexit.
There is a government sponsored website ‘Prepare for EU Exit’ which aims to support those who feel they should make arrangements but it seems many companies will simply be turning to the legion of freight forwarding agents who have been preparing for all eventualities. Global audit and tax consultancy firm RSM International commented on the report, with Brad Ashton, Customs and International Trade partner, saying:
”While the Government highlights that there is capacity to sign up 11,000 businesses per day for an EORI number, this is less than reassuring. Clearly, there are a huge number of businesses who simply aren't aware of what they need to do to be able to continue to trade with the EU post-Brexit.
”For some businesses that are already VAT registered the process for obtaining an EORI can be straightforward. However, for non-VAT registered businesses the process is more complex and time consuming. The message is very clear, those businesses that trade with the EU and haven't yet obtained an EORI need to get their skates on as the clock is ticking.”
The report also takes a subtle swipe at the attitude of the EU toward the negotiations, quoting a speech to Parliament by the Secretary of State for Trade in January saying ‘We all know from experience that the politics of the EU can take precedence over economic pragmatism. In the political atmosphere of no deal, it would be difficult to cultivate the good will necessary for that to proceed’. Read more
Source: HANDY SHIPPING GUIDE
