Now that Article 50 has been triggered, Brexit is becoming a reality. For businesses, this means that what may have been a simple transaction between themselves and their European partners may become more complicated, depending on the outcome of any customs negotiations.
Although no final deal has been reached, there are aspects of the courier industry that will change if membership of the European Economic Union and custom union is withdrawn. One thing is certain, sending a parcel is about to become potentially problematic.
According to Tremayne Distribution, specialist couriers in Bracknell, one potential impact may be an increase in domestic deliveries, as UK residents shop locally to avoid any additional levies from goods being delivered from overseas or the additional costs of items not produced locally.
Exporting to Europe
The biggest benefit to membership of the EU was the free trade between member states. Although declining, European state members are responsible for over 40% of British exports. It is anyone’s guess whether this number will remain as high, but with exports and imports becoming more complicated and transit times likely to increase, we may find transactions decreasing and in turn, international courier services may struggle.
Increased delivery times
Companies such as www.uk-tdl.com may find that they delivery times have to increase when the UK leaves Europe. This will be due to several things. Every package will need to go through customs and will be subject to safety checks. Currently, parcels can be moved quickly between countries, but they will ultimately require individual checks depending on what agreement is reached following Brexit.
For items entering the UK from the EU, anything valued over £15 will be subject to VAT. You could be expected to pay up to 20% of the value of the item. This may have an impact on how people shop and will potentially lower imports. It will also affect how much it will cost you to send things abroad.
General price rises
As well as VAT and duty payment, prices in general may increase following Brexit. It is expected that items found in the high street may increase by up to 30%. Anticipate that all items that we buy from abroad, including our groceries, will increase in price due to the additional costs of importing them.