According to Luďek Procházka, the head of Gerlach, an expert on customs issues, many Czech companies underestimate the preparations and may endanger their competitors, he told ČTK.
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Businesses will need a lot of new documents. According to Procházka, those who cannot manage to procure them will be pushed out of the market by competitors. “But many Czech companies are not experiencing the seriousness of the changes. On the other hand, due to Brexit, we are strengthening our capacities not only in the Czech Republic, but also in the English ports of Dover and Southampton, and we are ready to help companies with the entire Brexit agenda, “he said.
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According to Jiří Rak, head of the foreign office of the state agency CzechTrade in London, the customs conditions will change regardless of the result of negotiations between the EU and Britain. According to him, exporters should start solving new obligations as soon as possible. “British companies importing goods from the Czech Republic will also have to adapt to the new conditions. It is expected that most importers will use the specialized services of international carriers or customs brokers, “he added. According to Procházka, it is possible that British companies will want customs formalities to be handled by their Czech trading partners.
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Three phases
According to Procházka, Britain intends to introduce a new control regime in three phases. From January, it plans to impose basic customs requirements on the import of common products, which, according to Procházka, is everything from clothing to electronics. Tobacco, live animals, plant products or high-risk plants will also be inspected. “From April, inspections will be extended to products of animal origin. In July, London wants to extend the construction of a new inspection regime to all goods,” said Procházka.
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The Czech customs administration expects a greater bureaucratic burden of approximately 15 percent. “With regard to the registered offices of economic entities, it can be assumed that the largest volume of increase will be accounted for by the customs offices in Prague and in the Central Bohemian and Moravian-Silesian regions,” said Hana Prudičová, spokeswoman for the General Directorate of Customs.
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According to Procházka, the Dutch customs administration is preparing for inspections, which has already received about 300 customs officers and expects to recruit another 900. “They will inspect approximately 10,500 ships that transport goods to and from Britain every year,” he specified. According to him, about eight percent of trade between the EU and Britain will take place through Rotterdam. The French ports of Le Havre and Calais and the Belgian Zeebrugge are being strengthened in terms of personnel, he added.
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The Czech Republic’s annual exports to the United Kingdom exceed CZK 200 billion. Mainly machines and means of transport are exported. According to the vice-president of the Association of Exporters Otta Daňek, the share of Czech exports to Britain ranges between 4.5 and 5.2 percent of the Czech Republic’s total exports.
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Britain left the European bloc at the end of January. The EU and Britain are negotiating new rules. If they do not agree on them by the beginning of next year, so-called hard brexite will occur. In such a case, the rules of the World Trade Organization (WTO) will apply. Until the end of the current Brexit transition period, Britain continues to be governed by EU law, although it is no longer a member of the EU.
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