London, UK: Time is running out for operators to prepare for border model changes in October warns Logistics UK. It is urging the government to address six key areas of concern before the final Border Target Operating Model (TOM) is published. This will set out the proposed approach to importing goods into GB from countries inside and outside the EU.
The new model will introduce the changes in three phases, with the first set due to come into force in October 2023 – just three months away. Sitting alongside this is the Windsor Framework, an agreement between the government and EU, to ensure Northern Ireland has full access to both the UK and EU market. The six areas of concern are:
- Lack of detail, the cumulative impact of change and challenging timescales
- Impacts on supply chains
- Potential inflationary impact and market distortion
- How the Windsor Framework and TOM will effectively interact
- EU and Rest of World readiness
- Meaningful engagement with the logistics industry.
Nichola Mallon, head of trade and devolved policy, says: “One of our biggest challenges right now is that members have insufficient detail and guidance to enable them to prepare to meet the requirements of the new border model from October. For example, we don’t know details of what new system will be in place and developing, testing, and operating a new IT system could take a minimum of 6-12 months – which puts us into 2024.
“There is also uncertainty on the impact on supply chains – for example how groupage movements will operate under the TOM and what support and flexibilities will be provided.
“There could also be environmental impacts if physical certificates and checks are needed for unaccompanied freight which could push operators away from short sea container freight to road freight.
“We have also called for assurances from government that there will be sufficient capacity at the border and through key corridors to avoid delays when physical checks are introduced in January 2024.
Another key issue is that new import control processes, and potentially different charges across border facilities, will increase business costs and could distort movement and markets. We have pressed on government the real concern that its proposals could mean higher prices and reduced choice for UK consumers during a time of already high inflation, and when the government has made tackling inflation a top priority. We have urged government to minimise costs as much as possible.
“If the final TOM does not sufficiently address these concerns, EU countries might consider it too costly to do business with the UK, with less products appearing on supermarket shelves.
Government needs to appreciate that there is a whole supply network behind consumers getting their goods when they need them. Additional costs, process and friction will have an impact on this.”
