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 25/04/2017, 22:01
fraport-cargo-increase-as-greece-gets-1-2-billionFRANKFURT AIRPORT: April 24, 2017. The Fraport 'Speed Gate' at CargoCity South, where pallets are unloaded at four automated gates, security checked...
Written on 24/04/2017, 20:30
bank-deal-opens-maritime-green-doorLUXEMBOURG: April 22, 2017. The European Union's non-profit European Investment Bank (EIB) has signed a €150 million loan agreement with Dutch bank ABN...
Written on 21/04/2017, 19:44
air-cargo-volumes-rise-as-yields-remain-a-challengeGENEVA: April 20, 2017. IATA reports a slowing of air cargo volumes to a 1.3 percent rise in the three months to February 2017, compared to 2.3 percent...
Written on 21/04/2017, 18:40
u-n-cuts-cost-of-air-fleet-and-food-distribution-timesNEW YORK, NY: April 21, 2017. The United Nations is to cut its aircraft fleet and limit passenger flights to essential travel only, after revealing the...
Written on 19/04/2017, 20:20
benefits-to-outweigh-gothenburg-dredging-billGOTHENBURG, Sweden: April 18, 2017. A report by the Swedish Transport Administration (STA) says the SEK4.0 billion cost of deepening the approach to the...
Written on 18/04/2017, 19:37
siemens-to-set-up-logistics-head-office-at-expo-2020-dubaiMUNICH: April 18, 2017. Siemens is to base its logistics business for airports, cargo infrastructure and ports in Dubai and will move its headquarters to...
Written on 18/04/2017, 14:18
abu-dhabi-ports-provides-free-humanitarian-warehouseABU DHABI: April 18, 2017. Abu Dhabi Ports is providing the Emirates Red Crescent Authority (ERC) with a 550 square meter warehouse in Zayed Port as part...
Written on 13/04/2017, 19:11
emirates-sky-cargo-lifts-america-s-cup-challengerDUBAI: April 13, 2017. Bookmakers are giving America's Cup challenger Emirates Team New Zealand 3:1 odds to win the sailing competition when racing ends...
Written on 13/04/2017, 16:05
blockchain-used-in-pharma-supply-chainBEIJING: April 11, 2017. IBM and China-based supply chain manager Sichuan Hejia have launched the 'Yijian Blockchain Technology Application System', a...
Written on 12/04/2017, 18:10
k-n-and-alibaba-to-leverage-btb-ecommerceSHANGHAI: April 12, 2017. Kuehne + Nagel and Alibaba.com, the B2B business arm of the Alibaba Group, are combining their respective capabilities to offer...
Written on 12/04/2017, 16:58
dedicated-freighter-for-swiss-pharma-exportsMADRID: April 12, 2017. IAG Cargo has officially launched a weekly freighter service between Basel and Madrid to feed its Latin America network with Swiss...
Written on 11/04/2017, 20:15
miami-boosts-airfreight-traffic-eight-percent-by-valueMIAMI: April 11, 2017. The U.S. Department of Commerce says air cargo traffic through Miami International Airport (MIA) rose eight percent by value last...
Written on 07/04/2017, 22:03
u-s-roads-worse-than-namibiaWASHINGTON, DC: April 07, 2017. Testifying before the U.S. Senate Subcommittee on Surface Transportation and Merchant Marine Infrastructure, Safety and...
Written on 07/04/2017, 20:29
lng-bunkering-arrives-at-jacksonvilleJACKSONVILLE, FL: April 07, 2017. BBC Chartering has delivered two 260-ton cryogenic liquefied natural gas (LNG) storage tanks for Crowley Maritime's new...
Written on 06/04/2017, 23:00
air-cargo-upturn-will-it-lastGENEVA: April 06, 2017. IATA reports a 12 percent rise in freight tonne-kilometers in February compared to the same month last year - almost four times...
Written on 06/04/2017, 21:59
t-pod-designed-to-replace-swedish-trucksSTOCKHOLM: April 6, 2017. Swedish technology designer Einride has created an electric, self-driving “cargo with wheels” vehicle called a ‘T-pod’ that can...
Written on 04/04/2017, 22:06
mexico-president-inaugurates-new-apm-terminalLAZARO CARDENAS, Mexico: April 04, 2017. Mexico's president Enrique Peña Nieto and Denmark's prime minister Lars Lokke Rasmussen have inaugurated APM...
Written on 31/03/2017, 15:10
swiss-approve-commercial-drone-useLUGANO, Switzerland: March 31, 2017. The Swiss Federal Office for Civil Aviation (FOCA) has approved the use of drones by Swiss Post to carry laboratory...
Written on 29/03/2017, 22:13
laptop-ban-not-acceptable-says-iataMONTREAL: March 28, 2017. Less than a week after the imposition of a laptop ban on certain carriers flying to the UK and U.S. from parts of the Middle...
Written on 29/03/2017, 20:29
gcc-ecommerce-market-could-reach-us-20-billionSEATTLE/DUBAI: March 28, 2017. Amazon is to acquire eCommerce company Souq.com, the largest online marketplace in the Arab world with 45 million visits a...

- powered by Quickchilli.com -