• Current students
      • Student centre
        Enrol on a course/exam
        My enrolments
        Exam results
        Mock exams
        Learning Hub data privacy policy
      • Course information
        Students FAQs
        Student induction
        Course enrolment information
        Key dates
        Book distribution
        Timetables
        FAE Elective Information
      • Exams
        Exam Info: CAP1
        E-assessment information
        Exam info: CAP2
        Exam info: FAE
        Reasonable accommodation and extenuating circumstances
        Timetables for exams & interim assessments
        Interim assessments past papers & E-Assessment mock solutions
        Main examination past papers
        Information and appeals scheme
        JIEB: NI Insolvency Qualification
      • CA Diary resources
        Mentors: Getting started on the CA Diary
        CA Diary for Flexible Route FAQs
      • Admission to membership
        Joining as a reciprocal member
        Conferring dates
        Admissions FAQs
      • Support & services
        Recruitment to and transferring of training contracts
        CASSI
        Student supports and wellbeing
        Audit qualification
        Diversity and Inclusion Committee
    • Students

      View all the services available for students of the Institute

      Read More
  • Becoming a student
      • About Chartered Accountancy
        The Chartered difference
        What do Chartered Accountants do?
        5 Reasons to become a Chartered Accountant
        Student benefits
        School Bootcamp
        Third Level Hub
        Study in Northern Ireland
        Events
        Blogs
        Member testimonials 2022
        Become a Chartered Accountant podcast series
      • Entry routes
        College
        Working
        Accounting Technicians
        School leavers
        Member of another body
        International student
        Flexible Route
        Training Contract
      • Course description
        CAP1
        CAP2
        FAE
        Our education offering
      • Apply
        How to apply
        Exemptions guide
        Fees & payment options
        External students
      • Training vacancies
        Training vacancies search
        Training firms list
        Large training firms
        Milkround
        Training firms update details
        Recruitment to and transferring of training contract
        Interview preparation and advice
        The rewards on qualification
        Tailoring your CV for each application
        Securing a trainee Chartered Accountant role
      • Support & services
        Becoming a student FAQs
        Who to contact for employers
        Register for a school visit
    • Becoming a
      student

      Study with us

      Read More
  • Members
      • Members Hub
        My account
        Member subscriptions
        Annual returns
        Application forms
        CPD/events
        Member services A-Z
        District societies
        Professional Standards
        Young Professionals
        Careers development
        Diversity and Inclusion Committee
      • Members in practice
        Going into practice
        Managing your practice FAQs
        Practice compliance FAQs
        Toolkits and resources
        Audit FAQs
        Other client services
        Practice Consulting services
        What's new
      • Overseas members
        Working abroad
        Working in Australia
        Overseas members news
        Tax for returning Irish members
      • In business
        Networking and special interest groups
        Articles
      • Public sector
        Public sector news
        Public sector presentations
      • Support & services
        Letters of good standing form
        Member FAQs
        AML confidential disclosure form
        CHARIOT/Institute Technical content
        TaxSource Total
        The educational requirements for the audit qualification
        Pocket diaries
        Thrive Hub
    • Members

      View member services

      Read More
  • Employers
      • Training organisations
        Authorise to train
        Training in business
        Manage my students
        Incentive Scheme
        Recruitment to and transferring of training contracts
        Securing and retaining the best talent
        Tips on writing a job specification
      • Training
        In-house training
        Training tickets
      • Recruitment services
        Hire a qualified Chartered Accountant
        Hire a trainee student
      • Non executive directors recruitment service
      • Support & services
        Hire members: log a job vacancy
        Firm/employers FAQs
        Training ticket FAQs
        Authorisations
        Hire a room
        Who to contact for employers
    • Employers

      Services to support your business

      Read More
☰
  • Find a firm
  • Jobs
  • Login
☰
  • Home
  • Knowledge centre
  • Professional development
  • About us
  • Shop
  • News
Search
View Cart 0 Item

News

  • Home/
  • News
☰
  • News
  • News archive
    • 2020
    • 2019
  • Press releases
    • 2022
    • 2021
    • 2020
  • Newsletters
  • Press contacts
  • Media downloads
  • Podcasts Chartered Accountants Ireland
  • Budget day news

Sooner or later, the UK will have to operate its border like a normal third country to the EU – hear more about this from our guest writer, Shanker Singham

Sep 30, 2021

Shanker Singham, CEO of Competere, an international trade and economic policy consultancy, and customs and trade policy lead for the Trader Support Service and Digital Trader Services, writes about Border Control post-Brexit and why the call for ‘a better management border’ is louder than ever. Read more. 

One of the most significant political moments of the last four decades – the vote of the UK to leave the EU – has delivered stark changes in everything from business processes to societal debate.  

The implications of the vote have continued to reveal themselves over the last five years, with the UK facing a variety of both foreseen and unforeseen challenges.  

On an economical level, the most pressing and immediate area of challenge has been in the handling of the UK’s border arrangements. Worried voices have pointed to extreme disruptions in the country’s supply chain; most tellingly in the shortages of beer in pubs, of milkshakes at McDonalds, and dwindling Haribo stock. Although these are global supply chain issues, caused by the Covid-19 pandemic and ensuing lockdowns – rather than the UK border per se – the point remains that there is a premium on ensuring a smooth and well-managed customs process.  

But the border is managed not only by the UK government but also by an army of private sector customs experts, brokers, lawyers and accountants – all of whom have a hand in the import/export process that are so essential to our region’s economy.  

Previously, as a member of the EU, the UK did not have to think actively about an independent trade or customs policy. The EU had authority over common commercial policy and administered its customs union, of which the UK was a part. 

Indeed, the UK has not run its border fully independently for 47 years. To suddenly remove this support has, unsurprisingly, left a gap between the skills available and the expertise needed when it comes to how to navigate the changed processes. 

Significant Pressure 

Moreover, this is a border that handles transactions at massive scale and speed. Nearly half (46 percent) of UK exports go to EU countries, and without something to facilitate these arrangements, the impact on the UK economy could be significant. Leaving a customs union inevitably causes significant additional process and potentially tariffs (for those products that do not satisfy the rules of origin legislation of the trade agreement that allows a preferential zero tariff rate). The task for advisors is to help clients navigate these new rules, quickly, easily and with the least hassle possible. 

To do this effectively requires a near-microscopic understanding of the governmental changes that have been put in place to minimise trade disruption as well as the creative and innovative thinking needed to come up with ways of helping manage border processes in the most efficient manner. 

Government Processes and Changes 

There are several ways the UK government has sought to minimise disruption. First, it adopted a customs easement so that goods could arrive in GB under a simplified process that expires at the end of the year. The process allows an entry into the trader’s own records followed by a Supplementary Declaration with all relevant customs information within 175 days of the goods entering GB. With supply chains under increasing pressure – the transport and logistics sector, for example, has reported a shortage of 100,000 haulage drivers – Britain has delayed the implementation of some post-Brexit import controls for a second time. This has included various easements and delays to the full imposition of controls on food and agriculture. The requirements are constantly changing and evolving, and traders will need help and guidance to navigate these issues from their accountants and other advisors. On the export side, the EU has moved immediately to the imposition of full customs checks and controls, but there is some possibility of simplifications in the future based on the customs and trade facilitation provisions of the UK-EU Trade and Cooperation Agreement. 

One thing is certain – sooner or later, the UK will have to operate its border like a normal third country to the EU. It is here that advisors to firms need to play their role. 

Reducing Customs Complexity 

The way the customs industry has traditionally operated is currently very process-and-paper heavy. But the trade supporting private sector in the UK can now establish new and better approaches to this complex process with technology and can leapfrog existing customs practices which are legacy and historic. The UK already prioritises technology when it comes to new trade agreements, putting digital services front-and-centre in negotiations. We should also advocate the potential for digital technology to improve how we trade, not just what we trade. 

To move goods through customs, you need to navigate a labyrinthine set of rules and regulations, getting countless signatures and stamps from a plethora of different government agencies. But by tapping into the power of technologies like AI and machine learning, the UK could pioneer an entirely different approach to customs and borders, with technology smoothing out the complexities and reducing our reliance on scarce customs agents. With technology already a central component of our lives – both in our business and personal spheres – it seems a natural step to begin the development of digitally enabled trade solutions.  

The Government has also announced its own ambitions for the best border in the world by 2025. To achieve this, transformative and disruptive thinking is required. 

Digital First Thinking  

But when we talk about ‘digitally enabled trade’ – what do we really mean?  

Crucially, we want everything – the procedures, processes, the actions, the consequences – all created and delivered through technology. Not simply a digital record or data captured in a digital format; this is about taking advantage of a digital-first mindset to automate the process. It requires new smart technology-based systems which automate customs administration procedures to create compliant error free declarations without needing to be a fully-fledged customs expert. 

The use of smart, digital platforms is critical – though it is not the only factor. Separately, border operational procedures need to undergo a similar transformation to embrace a fully digital process; a step change for an industry that requires a base level of customs knowledge to be able to fill in customs declarations. 

Getting goods across the border is a complex task that involves handling a vast array of forms and liaising with different government departments.  

Handling this process at the scale needed is very difficult for smaller businesses and requires significant resource and deep expertise. The complexity of customs is also not simply correlated with size. Just because you are small, does not mean your problems are simple and can be easily handled. These firms will all turn to their advisors, especially their accountants to resolve issues, and knowing where to go for answers is critical. There is also pressure on third party resources and increased cost as the number of declarations that need to be made jumps dramatically. As scarcity hits the market, finding, recruiting, and retaining resources – whether in-house or externally – will spiral in cost and difficulty.  

Turning to technology to simplify and streamline that process – especially when built with the end user in mind – allows for a level of scalability, where success is not penalised or limited by border controls.  

By putting technology at the heart of the trading process, Britain can take its place on the global stage as a leading digital trading nation. By taking a digital-first approach, traders will have access to frictionless trade, and what once was an impassable line on a map becomes a simple administrative process between two separate custom regimes.  

The latest news to your inbox

Useful links

  • Current students
  • Becoming a student
  • Knowledge centre
  • Shop
  • District societies

Get in touch

Dublin HQ

Chartered Accountants
House, 47-49 Pearse St,
Dublin 2, D02 YN40, Ireland

TEL: +353 1 637 7200
Belfast HQ

The Linenhall
32-38 Linenhall Street, Belfast,
Antrim, BT2 8BG, United Kingdom

TEL: +44 28 9043 5840

Connect with us

Something wrong?

Is the website not looking right/working right for you?
Browser support
CAW Footer Logo-min
GAA Footer Logo-min
CCAB-I Footer Logo-min
ABN_Logo-min

© Copyright Chartered Accountants Ireland 2020. All Rights Reserved.

☰
  • Terms & conditions
  • Privacy statement
  • Event privacy notice
  • Sitemap
LOADING...

Please wait while the page loads.