‘Brexit must mean friction-free borders’ to deter smuggling
By Doug Newhouse |
The UK Wine and Spirit Trade Association (WSTA) has warned the UK government that its Brexit negotiations must achieve ‘frictionless borders’ where goods do not have to be routinely declared if huge ‘delays and gridlocks’ at ports and increased alcohol smuggling is to be avoided.
The WSTA originally raised this concern last month, following concern from some members that once Brexit is finally achieved, goods declaration red tape could encourage deadlock at British ports and overwhelm UK Customs, while turning surrounding roads into lorry parks.
These concerns are based on the high volumes of wine that the UK currently imports. The WSTA says that the UK wine trade is currently worth £17.3bn ($22.1bn) in economic activity, with around 1.8bn bottles of wine imported each year worth some £2.8bn ($3.5bn). Of this total, around 55% – or the equivalent of 1bn bottles – come from the European Union – mostly by boat.
‘On average’, the WSTA says that Dover alone handles 290 lorries per hour, carrying a range of goods, which works out at one every 12.4 seconds.
AFTER BREXIT CARGO VOLUMES COULD DOUBLE…
Imports from and exports to countries from outside the European Union are subject to customs controls. Goods from the EU, however, are free to be moved on with no extra checks, safeguarded by EU standards and the terms of the single market.
It adds that when the UK leaves the customs union, it would see more than double the volume of cargo that could be subject to inspection at British ports. With all British ports’ operations designed to operate on the ‘just in time’ principle, the WSTA says there simply isn’t the capacity for hold ups.
Wine and Spirit Trade Association CEO Miles Beale said: “We all want to avoid a cliff-edge situation and urge government to take industry advice on how to avoid a trade dead-stop and ensure the rapid transit of goods.
“There must be clear and workable mechanisms in place to allow cross-border trade of wine and spirits from the moment we leave the EU. Anything else will result in huge delays at the ports leading to backlogs and gridlock.
‘BOOTLEGGERS’ COULD MOVE INTO THE UK
“We must do everything we can to prevent Britain turning into a lorry park. If this isn’t addressed it will mean misery on the roads for all and will also mean that wine and spirits will not get onto the shelves. If this happens it is not unrealistic to expect an influx of bootleggers looking to find more efficient ways of getting alcohol into the UK.”
The UK wine industry is booming and is central to the global wine trade. It is the second largest wine importer by volume to Germany and the second largest by value to the USA.
WSTA Customs expert David Richardson added: “If we find ourselves in the nightmare scenario of UK ports shutting down as lorries are held in stacking chaos, then goods will not be getting to market. This will inevitably lead to bootlegging.
FREE FLOW OF TRADE ‘VITAL’
“The UK is the most important country in the global wine and spirit trade and criminals will find alternative methods of getting alcohol in. It’s big business for Britain and it’s vital government maintains the free flow of trade between the UK and Europe and reassures industry with an early solution.”
He added that the UK wines and spirits industry is calling for clarity from government as to whether there will be new customs checks and if they will take place in the UK or with European Union-based ports.
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