The government's Brexit border plan is far from being oven ready

The government has taken its eye off the specifics of what Brexit means for the UK. While this is understandable given the need to respond to the coronavirus pandemic, it means that businesses have not been given the necessary detail to ramp up their Brexit preparations. But the Brexit deadline is approaching fast. The government did not use its option to extend the transition perioid, so the UK will leave the single market and the customs union on 31 December – whether or not a new trade agreement is reached. Whatever the outcome, there will be huge changes for the way businesses trade with the EU (and the rest of the EEA).

The government has now published, in full, its border operating model ^[1]. This explains what will be required of traders moving goods between GB and the EU (goods moving GB-NI are covered by the Northern Ireland Protocol – more detail on that is promised soon). The model was accompanied by the announcement of a further £705m to make the border work. Both are welcome, and vital, developments. However, they also underline how much more there is to do to get ready for Brexit

Details matter – but the biggest challenge will be ensuring businesses understand them

The government has now filled in some of the blanks of the version it had shared with industry, namely what will be required in January and April next year as part of its plans to ‘phase in’ full checks at the border by July 2021.

But these new processes are complex – the 200-page document is dense and will be challenging to navigate, particularly for businesses who only trade with the EU and have never had to comply with customs procedures or physical checks at the border before. To get to grips with the new processes, many of these firms will want to use customs agents to complete new border formalities on their behalf. But that sector needs to expand rapidly – and it is far from clear that it will, leaving businesses, particularly SMEs, stranded.

The government has also launched its new Brexit communications campaign. Last year’s ‘Get Ready for Brexit’ failed to persuade a lot of businesses to prepare – they may have banked on Parliament frustrating a no deal exit. That uncertainty is now gone, but this time government faces another challenge – ensuring Brexit is enough of a priority for those businesses focused on getting through the coronavirus crisis.

 Some detail can’t be known until the deal – or no deal – is nailed down

There is only so much information the government can share at this stage. Its document sets out what will be required, regardless of the outcome of negotiations. Further details will depend on what agreement is – or isn’t – reached with the EU. The two sides could agree to reduce the number of physical checks on goods moving between GB and the EU, as well as streamline safety and security declarations (just one of the forms businesses will need to fill).

If a deal is reached, businesses will need to comply with complex rules of origin requirements to allow their exports to qualify for preferential tariffs. This will add, rather than reduce, an administrative burden when trading goods.

Both government and business will need to remain in regular contact, to clearly communicate, and to be ready to prepare rapidly as the detail may not be settled until very late in the day.

Businesses need to be prepared for full border checks on the EU side of the border

By phasing in checks at the UK border, the government is trying to ease the initial burden on businesses reeling from the coronavirus. But by delaying full checks on one side of the border, the UK is only helping businesses importing goods from the EU. The EU has said its border will be fully operational from day one – so hauliers carrying goods being exported to the EU will need to have all the necessary accompanying documents to be allowed to leave GB ports.

EU requirements are not covered in the documents released so far – but the government needs to make sure businesses know what is needed, possibly through working with the EU to establish an ‘end to end’ model. The government also needs to do the same for GB-NI trade. Even though it will control both sides of the border, it will have to manage the entry of goods into NI in line with EU rules. There are already worries about readiness in NI, and the government should not delay any longer in setting out what businesses will need to do.

So while it is welcome the government has finally published the border operating model and launched the communications campaign to run alongside it, these development do not diminish the size of the task ahead.