English Arabic Armenian Azerbaijani Chinese (Simplified) Chinese (Traditional) Czech Danish Dutch Estonian Filipino Finnish French Galician Georgian German Greek Hindi Hungarian Icelandic Indonesian Italian Japanese Korean Latvian Lithuanian Malay Maltese Norwegian Persian Polish Portuguese Russian Slovak Slovenian Spanish Swedish Thai Turkish Ukrainian Vietnamese

"Severe consequences" if UK leaves EU

LEEDS, UK: June 02, 2016. As 'Vote Leave' supporters rely on the transport industry to promote their cause, logistics specialist Tudor International Freight (TIF) says British businesses face “severe consequences” if the UK decides to leave the EU.

TUDOR JohnsonDavid Johnson (right), managing director of TIF, said a ‘Brexit’ Britain would face three possible outcomes in trading with the EU - describing them as the “Norway, Switzerland and China scenarios”.

“Probably the most straightforward and favorable trading model is that adopted by Norway, which, as a member of the European Economic Area, has a free trade agreement with the EU," he said.

“A Norway-style arrangement wouldn’t involve UK companies paying duties or taxes when moving goods across borders. However, they would need to produce documents proving where the goods originated, to confirm that they weren’t eligible for duties. This is an increasingly costly task, given the ever-greater complexity of modern supply chains.”  

His second scenario would see the UK making a series of bilateral trade agreements with the EU, similar to the 120 treaties the Union has with Switzerland. However he warned that when entering Switzerland, goods exported from the EU still have to undergo Customs clearance and are usually subject to VAT and import duties.

With the China scenario, Johnson said this would take effect if the UK left the EU after the official two-year withdrawal period without agreeing to the Norwegian or Swiss trading options and would mean implementing World Trade Organisation (WTO) rules: “The system would involve us and our former EU partners granting each other access to their markets and charging the same import duties they levy on other WTO members with whom they don’t have free trade agreements.

“In our case, these duties currently range up to the 32 percent levied on wine. The 53 free trade agreements we currently have with other countries as a member of the EU would lapse if we left.” 

BREXT impactJohnson noted that moving goods across borders within the EU is currently easy and cheap: “When we import dental uniforms and medical scrubs from Germany for a workwear company, the only documentation we need is a copy of the packing list or commercial invoice and the travel document.

“For air freight this is a waybill, for sea consignments it’s a bill of lading and for road haulage it’s a CMR note, the initials of which are derived from its French title. No Customs clearance process or duties apply and VAT doesn’t have to be handed over before the goods can be moved from the receiving port or airport. This system is the same whatever the import.”

However In a post-EU, WTO regime, he said importing £50,000 worth of medical scrubs and gowns from Germany would require a VAT payment of £10,000 at the UK point-of-entry, plus £5,000 in import duties.

Johnson said his three scenarios would all involve time or cost increases when moving goods across frontiers.

His conclusions coincide with a report by the OECD that claims an EU exit by Britain would result in a 3.0 percent drop in GDP by 2020 or a loss of £2,200 per household.

OECD secretary general Angel Gurría declared: “Leaving Europe would impose a ‘Brexit’ tax on generations to come. Instead of funding public services, this tax would be a pure deadweight loss, with no economic benefit.”

 

News

Written on 10/12/2017, 22:44
rolls-royce-to-test-remote-controlled-shippingPARIS: December 06, 2017. The European Space Agency (ESA) and Rolls-Royce have signed an MoU to investigate how space technology can be used to develop...
Written on 08/12/2017, 20:10
beijing-continues-to-cut-carbonNAIROBI: December 06, 2017. According to an Assessment Report on Beijing Capital Airport, released during the third UN Environment Assembly in Nairobi...
Written on 07/12/2017, 20:53
bollore-begins-rail-renovation-between-cote-d-ivoire-and-burkina-fasoABIDJAN, Côte d'Ivoire: December 04, 2017. SITARAIL, a Bolloré Transport & Logistics subsidiary, has begun upgrading the rail link between Abidjan and...
Written on 07/12/2017, 19:53
innovative-dry-bulk-handling-at-port-of-rigaRIGA, Latvia: December 06, 2017. The Baltic port of Riga says it has become the first in Europe to use containerized dry bulk handling technology. Rīgas...
Written on 06/12/2017, 21:57
azerbaijan-railways-gets-us-400-million-upgradeMANILA: December 06, 2017. The Asian Development Bank (ADB) is providing loans to Azerbaijan Railways totaling US$400 million to improve governance and...
Written on 03/12/2017, 22:36
amsterdam-to-get-china-rail-link-in-2018AMSTERDAM: November 29, 2017. Together with TMA Logistics, Austria's Rail Cargo Group and the Port of Amsterdam, Netherlands-based Nunner Logistics plans...
Written on 01/12/2017, 18:27
alibaba-launches-china-anti-poverty-campaignHANGZHOU: December 01, 2017. Alibaba Group executive chairman Jack Ma has established a US$1.5 billion 'Alibaba Poverty Relief Fund' by leveraging the...
Written on 29/11/2017, 19:46
dhl-adds-tesla-trucks-to-its-electric-fleetBONN: November 29, 2017. DHL Supply Chain has announced an order for 10 Tesla Electric Class 8 Semi tractors for delivery in 2019. The company said it...
Written on 28/11/2017, 21:50
netherlands-rail-operators-threatened-by-high-costsUTRECHT, Netherlands: November 28, 2017. RailGood, a Dutch alliance of 50 rail operators, logistics companies, inland terminals plus the German port of...
Written on 28/11/2017, 19:54
electric-powered-airbus-by-rolls-royce-and-siemensLONDON: November 28, 2017. Airbus, Rolls-Royce and Siemens are to develop and fly an hybrid-electric powered BAe-146 test aircraft by 2020 to determine...
Written on 27/11/2017, 21:04
rail-operators-want-compensation-for-rhine-valley-closureBRUSSELS: November 27, 2017. Three European rail freight associations want DB Netz, a subsidiary of Deutsche Bahn, to pay customers full compensation...
Written on 24/11/2017, 22:56
argentina-gdp-needs-aviation-investment-says-iataBUENOS AIRES: November 20, 2017. A report from Oxford Economics says Argentina could be a "regional powerhouse" if the government invested in the...
Written on 24/11/2017, 21:41
europe-top-in-attracting-business-talentLAUSANNE, Switzerland: November 20, 2017. A new study by the IMD business school says Switzerland, Denmark and Belgium are the best at attracting,...
Written on 21/11/2017, 21:21
singapore-signs-smart-logistics-mou-with-south-koreaSINGAPORE: November 21, 2017. Government enterprise agency IE Singapore has signed an MoU with South Korea's Gyeonggi province to collaborate in...
Written on 17/11/2017, 21:43
decathlon-takes-to-the-railsDOURGES, France: November 16, 2017. Maersk Line and Damco, subsidiaries of A.P. Møller – Mærsk, have completed their first block train from Wuhan, China...
Written on 16/11/2017, 18:06
mia-director-resignsMIAMI: November 14, 2017. Miami-Dade County Aviation Department director and CEO Emilio González, the driving force behind much of Miami International...
Written on 14/11/2017, 20:26
truck-manufacturers-face-class-action-lawsuitLONDON: November 14, 2017. UK law firm Collyer Bristow has established a £100 million class action for truck operators that may have been overcharged by...
Written on 14/11/2017, 17:03
finland-opens-new-rail-route-to-chinaKOUVOLA, Finland. November 12, 2017. A new weekly rail service between Northern Europe and China launched on November 10 as the first train with 41...
Written on 10/11/2017, 20:10
imd-acknowledges-family-business-excellenceGRAN CANARIA, Canary Islands: November 10, 2017. Swiss business school IMD has recognized global brand management company Pentland Group with its 22nd...
Written on 08/11/2017, 22:02
how-much-carbon-risk-in-us-355-billionLONDON: November 08, 2017. The Carbon War Room (CWR), founded in 2009 by Richard Branson and others to advance the low carbon economy, is calling for the...

- powered by Quickchilli.com -