By Astrid Geeraerts Head of Investment at Flanders Investment & Trade in the UK
The EU remains one of the UK’s main trading partners. Many industries, particularly food manufacturing, have seen their supply chains disrupted over the past two years because of Brexit and the pandemic. In 2023 new regulations may further impact how we do business. How can you ensure you maintain supplies in the ever-changing business landscape?
Despite an uplift in trade with Flanders in late 2021 and 2022, following the initial slump in early 2021, uncertainty and questions about export and import formalities are still the top topics of enquiries we continue to receive from UK businesses in 2022. Two years on from the UK’s exit from the EU, there is still widespread confusion about post-Brexit customs regulations that are continuing to cause a headache for exporters and importers alike and threaten to disrupt supply chains on both sides of the Channel.
Flanders and the UK have historically had close trading ties. In 2021 the UK was Flanders’ 4th largest export market and UK companies use Flanders as an easy access point to the EU. We’ve seen the challenges traders face and have helped many of them. No one wants to see these supply routes disrupted.
Know your supply chain
One primary issue for companies has been the importance of having a detailed understanding of their entire logistics chain. Every trader should map where products come from and what the logistics processes are. This will enable you to quickly optimise them according to the changing circumstances. What’s cost effective and efficient now may not be in a year’s time. You need clear visibility over your whole chain to determine that.
Clarity of communication
It is important to have clear agreements in place with clients, transporters, customs agents (and any other logistics player you may be using) in the UK and the EU for every step of the process. Check who is responsible for which element of the process. Good communication is key and double check everything. Over the last two years, we’ve found that the delays and hold ups are usually due to customs declarations being incorrect (which is frustrating for everyone), or an assumption, wrongly being made, that ‘someone else’ was handling part of the procedure.
Food Sector
One of the most challenging sectors for supply issues has been the food industry. The UK government announced a delay to post-Brexit checks on EU food imports which were set to be introduced on 1st July 2022. We know how welcome that was to everyone impacted in the sector. A flexible approach is needed to ensure we don’t see more of the horror stories we saw with food being delayed to the point of the destruction of the product in early 2021.
While checks are already in place on the EU side, new measures on the UK side are due to come into effect at the end of 2023, meaning that the food industry needs to ensure they are fully prepared. If you’re at all worried about this, please do contact us as we should be able to help ensure you understand what’s required.
Minimise the bureaucracy
With a myriad of post-Brexit customs regulations to understand and comply with in each EU country, we’ve found that many UK traders have looked for an easy, single-entry point to export to the UK. For exporters in the UK, Flanders has offered a financially attractive single gateway route to exporting to countries across the EU. Thanks to the region’s affordable real estate prices, absence of business rates, fast setup, and its variety of grants and subsidies, it’s well-placed to provide a base. Our ports are also used by the rest of the EU in its trade with the UK. Flanders consequently saw record levels of investment from UK companies in 2021, keen to safeguard supply routes, and we helped many of those companies.
Accessing help and support
Don’t see customs as the enemy. Whilst they have to enforce EU rules, the Belgian customs department is very supportive of traders and have recruited extra staff to deal with the higher volumes of goods going via our borders. They’re open and contactable and have set up a specific help desk to support companies.
At Flanders Investment & Trade, an official body of the region, we have been helping numerous traders manage their supply issues. Our help is free of charge and commercial influence and, if we’re not able to help you ourselves, we can make sure that you’re engaging someone reputable at a competitive price.
For UK businesses who need advice, FIT has provided webinars and online resources, as well as access to experts who can answer legal queries and make introductions to organisations such as banks and potential business partners.
There’s also lots of information on our website – www.flandersinvestmentandtrade.com
