Businesses criticise Brexit paperwork and customs formalities

More than a third of businesses say they have stopped shipping goods through Great Britain

Customs vehicles at Dublin port. Picture: Niall Carson/PA

More than half of Irish businesses have reported a disruption to their supply chain due to Brexit with many citing serious difficulties with customs formalities and frustration at insufficient guidance from officials.

A survey by Chartered Accountants Ireland (CAI), three weeks into the new trading environment, has found that more than a third of businesses have stopped shipping goods through Great Britain. Customs paperwork was cited as the biggest issue in the new trading environment while over half of businesses believe government guidance remains insufficient.

Public Policy Lead at the CAI Cróna Clohisey said that while in theory, there is free trade, customs formalities are proving hugely cumbersome for many traders. 

"We have all seen reports of lorries unable to board ferries in Britain due to errors in paperwork and uncharacteristically Revenue issued emergency measures to allow businesses get through the customs system. The effect of the border down the Irish Sea as well as the complexities surrounding the rules of origin has been keenly felt, with one in three businesses we surveyed reporting that they have stopped shipping goods through Great Britain.”

Despite most businesses surveyed understanding that customs administration and processes are required for trade between Britain and Ireland, 56 per cent do not feel that there is sufficient practical guidance from officials on how to apply the new customs arrangements to avoid increased costs and supply chain delays.

“We know there is a critical lack of customs expertise on the island of Ireland and many businesses are relying on suppliers and hauliers to complete the paperwork on their behalf. Businesses that are attempting to complete the customs declarations themselves have reported difficulty in connecting customs theory to the reality of their own situation and are calling on government officials to provide more practical examples on how they can carry out specific procedures.”

Lead of the Chartered Accountants Certificate in Customs and Trade Tony Buckley said there are few businesses whose supply chains have not been affected, directly or indirectly by Brexit. 

"The complexity of customs paperwork and processes and the effect this has had is apparent from the logjams we see. In many cases, the costs of trade have risen, and supply chains have been re-appraised."