CCR Magazine

CCRi banner ad
You are here  :Home arrow News arrow Delivering Brexit: International Delivery Experts Reveal the True Cost of Leaving the EU
Contact Us Newsletter Signup RSS Feeds

Latest News Headlines

Headlines

 
Commercial Credit News

Headlines

 
Delivering Brexit: International Delivery Experts Reveal the True Cost of Leaving the EU PDF Print E-mail
Tuesday, 19 April 2016
International courier ParcelHero says Brexit will add 30% to the price of an average import and cost the typical SME importer £163k a year through increased shipping costs, duties and taxes, red tape and border delays  

The international courier ParcelHero is warning that if Britain exits the European Union (EU) there will be an immediate and significant decline in trade with its most important trading partner.

Based on its extensive experience shipping to non-EU countries on the Continent and beyond, ParcelHero warns there will be an average 5%-9% added to the price of an item in duties, and VAT of around 20% to pay (only reclaimable for those who are VAT registered). Additionally, it warns there will be increased transport costs, as the UK becomes a less competitive market for international couriers, and new ‘customs clearance’ charges from global carriers: typically around £15.

ParcelHero claims in a new report – Delivering Brexit: The True Cost of Leaving the EU – that a typical £150 purchase from the EU would cost Brits around £195: an increase of £45 or 30%.

Says ParcelHero’s Head of Consumer Research, David Jinks MILT: ‘It’s not just consumers who will suffer; businesses will too. Our report reveals that the typical SME engaged in importing from the EU will be spending around £163k extra annually, including duties and taxes, if we leave the Union.’

The report warns UK exporters will face a mass of new red tape shipping to the EU. Customs forms with proof of origin for every shipment will be required; and the resulting duties payable by receivers mean EU businesses will be three times more likely to prefer to trade elsewhere within the Union than with the UK.

Explains David: ‘The cost of consumer goods could rise by around 32% if the UK follows the model European non-EU member Norway; and 58% if it follows the favoured Swiss model. A typical pair of branded jeans that costs £56 in the UK costs £71 in Norway and over £80 in Switzerland. That difference is not just down to increased duties and transport costs; but they certainly don’t help.’

Once outside the EU, the UK is unlikely to qualify for the many favourable trade agreements negotiated by the union with key countries and markets around the world. Significantly, it would be unlikely to be included in the planned Transatlantic Trade and Investment Partnership (TTIP) between the US and EU, aimed at removing most customs duties. This would mean, for example, British cars exported to the US would still face a 2.5% tariff that will no longer apply to EU cars. And, unless the UK were to react unilaterally, import duties of 10% on imported American cars would remain in Britain, but be abolished in the EU. It is also likely that very many other British exports such as fuel and chocolate could also be at a disadvantage if TTIP abolishes tariffs on those products.

Adds David: ‘If we were to plough our own furrow completely, leaving the common market and setting our own tariffs, that would also mean moving outside the EU’s Common External Tariff and setting new duties on 19,000 individual tariff codes: a guaranteed recipe for increase red tape and delays.’

The report also disproves the claim that the UK’s SME businesses can simply switch from the EU, our main trading partner, to, for example, the BRIC nations. Typical ParcelHero SME business users shipped more items to the Republic of Ireland alone last year than the whole of Brazil, Russia, India and China combined. Small wonder when, for example, British CKD car part sets attract duties of 125% in India.

Concludes David: ‘The message is clear, when faced with new duties and red tape on UK goods, EU-businesses will stick with their union partners - at the expense of a go-it-alone Britain.’
 
CCRI
3 October - Guoman Tower Hotel, Central London 

CCRInteractive, in association with Marston Holdings , is the largest and leading one-day conference from the publishers of CCRMagazine – a truly national and international event for the credit industry.

This landmark event allows delegates to: Learn best practice of how to increase profitable sales in today’s economy. Understand the key compliance issues and how they will impact upon you. Discuss the legislative and regulatory framework and how it will effect you. Consider the potential effects of Brexit on your business. Discover the latest innovations in the market to improve your collections. Motivate your staff to achieve ever improved results.

To book to attend in 2017, contact Stephen Kiely  or Alison Lucas. To find out more about being part of this landmark event, please contact Gary Lucas
CCRI 

 Forums International Ltd

Forums International Ltd

 Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.

Find out more here.

latest issue

CCR Cover

The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.

Read the latest issue online

The Credit Excellence Awards

Awards 

Tuesday 3 October - Guoman Tower Hotel, Central London


Do not miss your chance to meet and network with the Winners and Finalists at the Credit Excellence Awards, in association with Hoist Finance.


To book your place to attend, please contact Alison Lucas.


subscriptions

CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.

As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.

Subscribe to CCR Magazine

CCR World Magazine


 

Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.

Find out more

GTS Media Ltd
81 Cambridge Road
Southend-on-Sea
Essex
SS1 1EP

Registered in England No: 05483197