Hello, everyone. I thought it might be of interest to reveal
what I know (up to now) about what is laughingly called the
'Brexit Deal'. I realise that there might be some who regard it
as the best thing since screw-cap bottles but they must, by now,
be very few in number.
Certainly you will not find many engaged in export or import who do not regard the 'Deal' as a last minute fig leaf to avoid the ignominy of a 'no-deal' departure. In short, it's a bureaucratic, logistical, financial nightmare.
So that's off my chest - now on to the detail: - an increase of potentially 20% in the basic cost of shipping. This reflects
¶ the huge amount of extra paperwork for Freight Forwarders,
¶ their recruitment of extra staff to deal with it,
¶ and an estimated allowance to cover additional lorry and driver costs for the inevitable delays at ports of exit and entry
¶ increased Duty by virtue of wines imported from the EU now being subject to CCT (Common Customs Tariff) which was formerly only levied on non-EU wines.
¶ Additionally there will be a further 1% levy on Duty Deferment arrangements. - FCA (Free Carrier Agreement) is a new situation where the EU wine exporter or vineyard has to produce an EX1 (Export Declaration) alongside his eAD (Electronic Accompanying Documents) in order to have free movement of his goods to the port of exit.
¶ HM Government would tell you that this is a cost to the exporter or vineyard but, not surprisingly, they are saying 'you wanted Brexit, you pay for it'.
¶ This will involve The Wine Club in having to pay an additional charge for an EU agent to complete the paperwork. - The introduction of a Single Administrative Document (usually known as a C88) and the need for a EMCS entry (Export Movement and Control System). These, together, provide proof of authorisation to import and distribute freely imported goods including the movement to Bonded premises whilst under Duty Suspension. This, too, will be costly.
¶ Heat-treated pallets (whatever they are) must be used, in compliance with international standards (ISPM15).
¶ You may have heard enough by now, so I shan't even mention the importation of organic wines, other than to say there will be at least two changes which will additionally require two new charges - for Organic Pre-notification and Port Health Certification.
The Wine Club anticipated the imposition of arrangements and costs such as these, and it was precisely for this reason that we imported in advance sufficient wine for 4 or 5 future Wine Club offers before Brexit actually happened on 1st January.
Hence we shall not have to look at our pricing model until our importations re-commence in early summer. Hopefully by then processes will be better understood and working more smoothly. If you have read this far, thank you for your patience!
published with the full consent of Terry Herbert. This is part of his newsletter.