The Brexit disaster escalates because the EU threatens authorized motion London financial information


International delivery specialist ParcelHero says the government’s Brexit plans are in crisis. It warns that the Brexit is expected to cost UK traders £ 5.25bn in lost sales and increased costs.

ParcelHero also warns companies could face further disruption as the European Union (EU) prepares to sue the UK over its unilateral decision last week to grant the grace period for new checks on parcels and food deliveries to Northern Ireland extend. The European Parliament has also postponed setting a date for ratification of the Brexit trade agreement. Some senior MPs warn that if the UK continues to make its own rules, it may never get passed.

A new study by ParcelHero, published today, shows that due to increased administrative burden and increased tariffs, UK retailers could see a 35% drop in sales of overseas products. David Jinks MILT, director of consumer research at ParcelHero, says a £ 5.25 billion black hole would be created from lost trades and increased costs.

The latest Brexit study by ParcelHero: The worsening Brexit crisis of GBP 5.25 billion shows how great the impact of Brexit can be on British traders and what damage could result from the clarification of the Northern Irish customs plans.

‘The government’s Brexit rollout is going to hell in a handcart. The Prime Minister must return to the negotiating table to resolve the escalating issues facing afflicted retailers in the UK.

‘ParcelHero’s new report shows that the crisis over the’ guarantee of origin ‘- where exactly one item was manufactured and sourced – means that 35% of UK retailers and distributors importing from the EU are in big trouble. Ecommerce imports are expected to decline 35% as the crisis progresses, costing UK importers higher prices for goods, lost sales and marginal fees of £ 5.25 billion.

‘To exacerbate the problems of UK Brexit, the government is now facing legal action by the EU after unilaterally deciding last week to extend the grace period for package controls and groceries at Northern Ireland’s borders to October. According to the provisions of the Northern Ireland Protocol, the region remains part of the EU’s internal market for goods. Parcels arriving from the UK should go through an EU import procedure from April 1st.

‘Last month, ParcelHero warned that delays and red tape for goods shipped between the UK and Northern Ireland would increase significantly following the failure of an important UK-EU meeting. We urged the government to do everything in its power to renegotiate some provisions of the new protocol. The introduction of new checks and potential duties on packages dispatched within the UK itself is clearly ridiculous. What we did not envision was that the government would just throw the problem in the long grass without agreeing to any delay with our EU trading partners.

“Maroš Šefčovič, the chief negotiator for the EU’s Brexit, has now told the Financial Times that” infringement proceedings “are being prepared and” will come to our table very soon “.

“The EU could now take the UK to the European Court of Justice or seek arbitration under the terms of the EU-UK trade agreement. Neither measure will do much to smooth the increasingly difficult relationship between Britain and Europe.

‘The big problem with both e-commerce imports between the EU and the UK and parcel shipments between the UK and Northern Ireland is new tariffs for products originating outside the EU or the UK. For example, clothing over £ 135 has a duty of around 12%. This is certainly not free trade. If this requirement were removed, most packages would no longer need to be checked and most areas of disagreement between the UK and the EU would be resolved.