Examples of how Brexit impacted UK importers.
By Graham Riches
[When waiting to be admitted as a CfE member during our annual AGM blackout period, Graham Riches and Rosemary had an interesting conversation about British hauliers. What follows is Graham’s Brexit story plus the article he was looking to share.]
Here are two examples of how Brexit impacted UK importers.
Before Brexit, a couple of my clients imported goods from the Far East. The goods were customs-cleared in the UK, and they paid the duty and VAT. If they received orders from other EU countries they just sent the goods and billed the EU customer as the goods were “in free circulation”.
After Brexit, an EU client would be billed the full amount so had to pay duty and VAT again. As they effectively paid twice for duty/VAT, this UK company lost the business.
Another UK company made most of their staff redundant and set up an operation in Belgium to serve EU clients. But one of their problems was trying to anticipate what their EU customers might want, so they ended up with surplus goods in Belgium.
I mention two clients but there were more, of course. I actually retired in 2012 but have kept in touch with some clients. One of them voted for Brexit and after the vote got a call from a large customer in Ireland to say “you know we will not be able to order from you again.” Later he received more calls. Each of them lost a great deal as a result in terms of staff and increased costs.
This is the type of damage caused by certain politicians who had very little or no understanding of the damage Brexit would cause. That is the type of issues Brexit caused.
Allow me to share a TransInfo article spelling some of this out:
EU’s new border checks could push British hauliers to breaking point, experts warn
“The Road Haulage Association (RHA) has warned that the European Union’s new Entry/Exit System (EES), which comes into force on 12 October, could threaten the survival of UK hauliers and coach operators working in the EU, while also depriving the Treasury of vital highway tax revenues. The digital border regime replaces passport stamping with biometric checks for all non-EU travellers entering the Schengen area, including UK citizens. It will also enable stricter enforcement of the 90-days-in-180 rule, limiting the time UK passport holders can spend in the EU without a visa.
“The RHA says the new system risks ‘business collapse’ unless professional drivers are granted a specific exemption to allow them to continue cross-border work. Without such an arrangement, UK operators could be forced to cancel services once their drivers reach the 90-day limit. ‘It’s likely that UK hauliers will go out of business without easements for drivers on international work,’ the RHA said. ‘That means EU-based operators filling the gap – and then taking on more UK domestic work.’ The Association also warned of wider fiscal consequences, arguing that a shrinking international haulage sector would lead to lost fuel duty, Vehicle Excise Duty and HGV Levy income as more EU-registered vehicles handle UK-bound freight.
“The 90/180-day restriction is already creating operational challenges for companies in both freight and passenger transport. Jason Edwards, managing director of Pontypridd-based Jason Edwards Travel and an RHA board member, told The Guardian that his 70-strong driver team was struggling to plan continental tours within the time limit. ‘When our drivers are running out of days they can spend in the EU, they’ll have to turn down or cancel jobs if we can’t get anyone to backfill,’ he said. ‘We need the EU to give us a special worker’s permit.’
“The RHA argues that without a professional driver exemption or new visa arrangement, British hauliers will be disadvantaged compared with EU competitors who can operate freely across the Channel. Industry bodies including the British International Freight Association (BIFA) have previously warned that the EES rollout could lead to border delays during the initial months of implementation. From 12 October, biometric checks will apply to freight and coach traffic at Dover and Eurotunnel, with full rollout to other travellers expected by spring 2026. The UK government has said it is monitoring the situation and engaging with EU partners, but has not yet announced any progress toward securing an exemption for commercial drivers.”
And another thought. The government cannot have it both ways by making special exemptions for British lorry and coach drivers. Then it will be for musicians, followed by politicians, followed by the upper classes. Eventually, the only people left with the 90/180 day rule will be the 90+% of us. I sold my holiday property in Spain two years ago after 18 years because of the additional burdens caused by Brexit. I have no sympathy for those who voted for Brexit, and it has tarnished my relationship with many friends.
