Brexit — a term used a lot these days, especially since the decision has been made. But what is it really? How could it impact the forwarding community?
Those are the real — the answers to which are only just beginning to surface. English voters made the decision to leave the European Union, based mostly on emotion, without fully grasping the consequences. Now that Brexit is a reality, we can expect important changes to the flow of trade into and out of both Great Britain and the remaining EU members.
Once Britain negotiates its formal departure, they will no longer be part of the EU duty-free zone. Each shipment from there to any EU member country will have to clear customs and duties and VAT will most likely be assessed. Those exact amounts will be part of future negotiations. The effect of this will be dramatic for companies with manufacturing facilities or distribution warehouses in the UK that had been used as gateways into the European market and its millions of consumers. Costs will increase, reducing the competitiveness of these products.
