Research and analysis

Road hauliers: the movement of goods and the use of technology (2020)

Published 15 July 2025

This report was commissioned under the Conservative administration (2010 to 2024), and conducted in 2020.

Qualitative research into how businesses involved in the transportation of goods, planned to move goods after the end of the transition period and their potential use of technology to support this.

HM Revenue and Customs (HMRC) Research Report 812.

Research conducted by IFF Research between October and December 2020. Prepared by IFF Research (Alex Pearson, Nicholas Mitchell and Rob Warren) for HMRC.

Disclaimer: The views in this report are the authors’ own and do not necessarily reflect those of HM Revenue and Customs.

1. Executive Summary

These results are from 2020, and so reflect the policy context of that time rather than any changes that may have happened since.

Introduction

HMRC commissioned IFF Research to undertake research on road hauliers: the movement of goods and the use of technology. On 1 January 2021, the transition period with the European Union (EU) ended, and the United Kingdom (UK) began to operate a full, external border as a sovereign nation. From this date controls on the movement of goods between Great Britain (GB) and the EU were introduced in stages, and the Northern Ireland Protocol took effect. 

The Northern Ireland Protocol has been designed as a practical solution to avoiding a hard border on the island of Ireland whatever the trading arrangements are between the UK and the EU. The staged approach that applies to EU-GB movements will not apply to Northern Ireland (NI). Under the protocol the UK Government will:

• deliver unfettered access for NI producers to the whole of the UK market
• ensure there are no tariffs on goods remaining within the UK customs territory
• give effect to obligations without the need for any new customs infrastructure in Northern Ireland
• guarantee that NI businesses will benefit from the lower tariffs delivered through new Free Trade Agreements with third countries

It is in this context that HMRC commissioned IFF Research to explore how businesses involved in the transportation of goods, including road hauliers, freight forwarders and logistics companies, planned to move goods after the end of the transition period and their potential use of technology to support this. The specific objectives of the research were to:

• understand how road hauliers, freight forwarders and logistics companies operate
• understand how road hauliers, freight forwarders and logistics companies use customs declarations and paperwork
• explore what technologies road hauliers, freight forwarders and logistics companies use
• understand road hauliers’, freight forwarders’ and logistics companies’ capacities and preparations for EU Exit

Between 28 October and 18 December 2020, IFF Research conducted qualitative interviews with 40 road hauliers, freight forwarders and logistics companies who moved goods between the UK and the EU and planned to continue doing so after the end of the transition period.

How road hauliers, freight forwarders and logistics companies currently operate

The planning of routes was typically done by road haulage businesses. Logistics companies and freight forwarders were less involved in route planning, often leaving it to the companies they sub-contracted for haulage services.

Where businesses were involved in route planning, the key factors considered were delivering goods on time and the costs of transportation. Other prominent considerations included the type of goods being transported and driver welfare.

Businesses typically aimed to carry a full load to maximise efficiency. This means that, where possible, hauliers attempt to fill consignments with goods from other jobs and collect goods for the return journey.

How road hauliers, freight forwarders and logistics companies use customs declarations and paperwork

Many businesses did not transport goods outside of the EU and so did not have any involvement in preparing customs declarations and paperwork. Where businesses did transport goods outside of the EU, a few outsourced customs clearances to third parties, others left the preparation of declarations and paperwork to their clients and a few completed declarations and paperwork in-house.

Those that transport goods to countries outside of the EU, and therefore had prior experience of dealing with customs declarations and paperwork, generally viewed the process to be straightforward. These businesses collected the necessary information from their clients (such as commercial invoices and packing lists) and then inputted this information into the relevant documents and or systems.

Technologies road hauliers, freight forwarders and logistics companies use

Businesses used a range of technological applications for the different stages of transporting goods between the UK and the EU, from booking jobs, to planning and tracking shipments and organising customs clearances.

With regards to booking jobs, the extent to which technology was used varied, with some relying on emails or telephone calls while others used more sophisticated software packages. Hauliers and logistics companies often used technological applications to plan routes and track shipments, with some mentioning software that calculated the best route by considering factors such as the weight of shipments and the maximum speed and fuel consumption of vehicles. Where involved in customs clearances, a few businesses used technology to prepare and submit documentation. These software packages tended to interact with HMRC’s current customs declaration system (Customs Handling of Import and Export Freight, known as CHIEF).

Most businesses were comfortable with the technology they used as the technology had generally been in place for long enough to be well-embedded within the business’ processes and adequately served the needs of the business. The systems used by businesses were typically ‘off-the-shelf’ software applications, though in some cases businesses had commissioned their own bespoke in-house software.

Very few barriers to introducing or using new technology were cited by businesses. However, a few businesses felt that the new systems that were due to be introduced at the end of the transition period (such as the Goods Vehicle Movement Service, known as GVMS) would cost the business in terms of the time it would take to familiarise themselves with the systems or in terms of having to introduce new applications or link existing applications to these new systems.

The capacities and preparations of road hauliers, freight forwarders and logistics companies for EU Exit

All businesses had taken steps to prepare for the changes to customs procedures. Frequently mentioned preparations included training staff, introducing technological solutions, and engaging customs agents. The nature of the preparations made by businesses reflected how they planned to operate once the transition period ends. For example, those that planned to manage customs procedures in-house were more likely to have introduced or adapted technology and to have employed new staff.

However, despite all businesses having taken steps to prepare for the changes to customs procedures, most did not feel ready for the end of the transition period. This was typically because there were elements of the changes to customs procedures that were said to be undefined or unclear.

Businesses often emphasised the need to have definitive information about the terms of the trade agreement between the UK and the EU. Furthermore, some said they would benefit from more information and clearer information about specific elements of the new customs procedures, such as how the GVMS and Border Control Points will operate. 

Businesses typically expected the effects of the changes to customs procedures to be negative, with many expecting delays in their supply chain, administrative burden and increased operating costs. However, there were a minority of businesses who thought the changes to customs procedures could be beneficial in terms of an increase in the amount of business they have.

2. Glossary

Term	Description
Authorised Economic Operator (AEO)	An internationally recognised quality mark that shows that a business’s role in the international supply chain is secure and has customs control procedures that meet UK and EU standards.
Border Control Points (BCPs)	This refers to an inspection post designated and approved in line with EU legislation for carrying out checks on animals and animal products arriving at the EU border.
Customs Declaration Service (CDS)	The new reporting platform used to process declarations for goods entering and leaving the UK or EU through ports and airports. CDS will replace the current CHIEF system.
Customs agents or consortiums	Businesses who act on behalf of transporters to offer professional customs clearance and representation for imports and exports.
Customs declaration	This refers to the paperwork that must be completed before bringing goods to and from the EU; declaring the good in detail.
Customs Handling of Import and Export Freight (CHIEF) system	An online system that allows importers, exporters and freight forwarders to complete customs formalities electronically and automatically; with the purpose of recording the movement of goods by land, air and sea. This is the existing customs declaration platform.
European Conference of Ministers of Transport (ECMT)	A forum in which Ministers responsible for transport, and more specifically the inland transport sector, can co-operate on policy.
Exporter	An exporter is a person or organisation that sends articles of trade (goods or service) to another country.
Freight forwarder	This is a company that organises shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer, or final point of distribution.
Goods Vehicle Movement Service (GVMS)	A new information technology (IT) service that the UK government is introducing to support border locations using the pre-lodgement model for customs control and to facilitate transit movements. From 1 January 2021 it will be used to facilitate movements between GB and NI to meet requirements under the Northern Ireland Protocol and for transit movements arriving in the UK. It will be used for other declarations for both imports and exports at GB border locations from 1 July 2021.
Haulier	This is a business that is employed in the transport of goods or materials by road.
Importer	An importer is a person or organisation that brings articles of trade (goods or services) from a foreign source into a domestic market.
Incoterms	Incoterms are a set of 11 individual rules issued by the International Chamber of Commerce (ICC) which define the responsibilities of sellers and buyers for the sale of goods in international transactions.
Logistics business	A logistics business is a company that assists other businesses in the transportation, storage, and distribution of goods from seller to buyer.
Staged controls	Changes to border controls will be introduced in 3 ‘stages’ from 1 January 2021, to 1 July 2021, with varying requirements.
Tachograph	A device fitted to a vehicle that automatically records its speed, distance and driving time, together with the driver’s activity.
Tariffs	This is a tax paid on goods imported into a country.
Transit Accompanying Document (TAD)	This refers to a document accompanying uncleared goods during transit from one authorised location to another.

3. Introduction

HMRC commissioned IFF Research to undertake research on road hauliers: the movement of goods and the use of technology.

Background and objectives

On 1 January 2021, the transition period with the European Union (EU) ended, and the United Kingdom began to operate a full, external border as a sovereign nation. From this date controls on the movement of goods between Great Britain (GB) and the EU were introduced in stages, and the Northern Ireland Protocol took effect. 

The Northern Ireland Protocol has been designed as a practical solution to avoiding a hard border on the island of Ireland whatever the trading arrangements are between the UK and the EU. The staged approach that applies to EU-GB movements will not apply to Northern Ireland (NI). Under the protocol the UK Government will:

• deliver unfettered access for NI producers to the whole of the UK market
• ensure there are no tariffs on goods remaining within the UK customs territory
• give effect to obligations without the need for any new customs infrastructure in Northern Ireland
• guarantee that NI businesses will benefit from the lower tariffs delivered through new Free Trade Agreements with third countries

In the context of this change to customs and border practices, HMRC commissioned IFF Research to conduct research into how these changes would impact businesses involved in moving goods between the UK from the EU, and vice versa. Specifically, the impact on road hauliers, freight forwarders and logistics companies. The findings from this study will be used to help support customs processes and inform the implementation of any future changes.

The overarching aim of this research was to explore how road hauliers, freight forwarders and logistics companies plan to move goods after the end of the transition period and their potential use of technology to support this. The specific objectives of the research were to:

• understand how road hauliers, freight forwarders and logistics companies operate
• understand how road hauliers, freight forwarders and logistics companies use customs declarations and paperwork
• explore what technologies road hauliers, freight forwarders and logistics companies use
• understand road hauliers’, freight forwarders’ and logistics companies’ capacities and preparations for EU Exit

Methodology  

Between 28 October and 18 December 2020, IFF Research conducted qualitative interviews with 40 road hauliers, freight forwarders and logistics companies that moved goods between the UK and the EU and planned to continue doing so after the transition period ended.

Businesses were recruited for qualitative interviews by IFF Research’s in-house recruitment team. The contact details for businesses were obtained from multiple sources. HMRC provided the details of 200 UK businesses that had participated in similar research in the past and had agreed to be re-contacted; IFF Research obtained 1,000 records of UK businesses from Market Location’s Business Database; and IFF Research free-found a sample of around 200 records for businesses based in Poland, France and the Republic of Ireland (ROI).

All qualitative interviews were conducted remotely, either by telephone or video call (via Microsoft Teams). Due to fieldwork taking place during the COVID-19 pandemic it was not possible to conduct face-to-face qualitative interviews. On average, each interview lasted 60 minutes.

When interpreting the data in this report it should be noted that qualitative research provides insight into perceptions, feelings, and behaviours rather than quantifiable findings from a statistically representative sample. Because qualitative samples are small and purposively designed, the findings cannot be considered to be representative of the views of all road hauliers, freight forwarders and logistics companies.

The profile of participating businesses

The businesses that participated in interviews as part of this research project possessed a wide variety of different characteristics. For example, in terms of sector, size, location, the type of goods transported, their client base, and the end-destinations and routes taken.

Sector

Interviews were conducted with businesses from a range of different sectors. As shown in Table 3.1, 16 interviews were conducted with road hauliers, 12 interviews were conducted with freight forwarders and a further 12 interviews were conducted with logistics companies. 

Table 3.1: Participating businesses by sector

Sub-sector	Number of interviews
Road Hauliers	16
Freight Forwarders	12
Logistics Companies	12
Total	40

Size

A variety of different sized businesses were interviewed, both in terms of number of employees and turnover. Participants ranged from small businesses with one to nine employees and turnover of between £250,000 and £500,000, to large businesses with over 250 employees and an annual turnover in excess of £50 million. Table 3.2 presents a breakdown of the interviews completed by number of employees and Table 3.3 presents a breakdown by annual turnover.

Table 3.2: Participating businesses by number of employees

Number of employees	Number of interviews
Micro (1 to 9)	7
Small (10 to 49)	18
Medium (50 to 249)	12
Large (250+)	3
Total	40

Table 3.3: Participating businesses by annual turnover

Annual turnover	Number of interviews
£250,000 to £499,000	4
£500,000 to £1m	4
£1m to £4.9m	9
£5m to £9.9m	5
£10m to £49m	12
£50m+	2
Undisclosed	4
Total	40

Location

With regards to location, 35 interviews were conducted with businesses based in the UK (32 in Great Britain and 3 in Northern Ireland). The remaining 5 interviews were conducted with businesses based in countries that will remain in the EU after the end of the transition period (4 in the Republic of Ireland and one in Poland).

Table 3.4: Participating businesses by location

Location	Number of interviews
Great Britain (UK)	32
Northern Ireland (UK)	3
Republic of Ireland (EU)	4
Poland (EU)	1
Total	40

IFF Research sought to recruit businesses from 3 EU countries: the Republic of Ireland, France, and Poland. Recruitment of businesses based in France and Poland proved particularly challenging. This was primarily because of a lack of engagement or interest amongst French and Polish businesses in the upcoming changes to UK customs. In the end, no interviews were conducted with French businesses and only one interview was conducted with a Polish business.

Goods

The types of goods transported by businesses varied significantly. Some did not specialise in any particular type of good, and instead transported a range of goods between the UK and the EU. Others specialised in transporting a specific type of good, for example, food produce, car parts, furniture, and chemicals.

Clients

Linked to the range of goods transported, the types of clients and the number of clients that businesses worked with varied. A few worked with just one large client, some worked with several clients within a particular industry (such as retail and manufacturing), while others worked with an ever-changing client base across a range of different industries.

End destinations and routes

Businesses transported goods to a variety of different destinations and used a variety of routes to do so. EU clients were based in countries such as France, Spain, Germany, and the Netherlands, amongst many others. Crossings were typically made using ferries, but many also used the Eurotunnel and a few used air freight.

Some businesses transported goods to destinations outside of the EU, including North America, Africa, and South East Asia. Where goods were transported to clients outside of the EU, goods were typically transported via container ships.

4. How businesses currently operate

This chapter explains how businesses currently operate. It details the processes used by businesses to move goods between the UK and the EU, or vice versa, including how jobs are booked, how routes are planned and managed, the procedures around customs declarations, and the application of technology.

Route planning

The planning of routes was typically the responsibility of road haulage businesses, who often had in-house teams or an individual that handled the planning. Logistics companies and freight forwarders were less involved in route planning, often leaving it to the companies they sub-contracted to for haulage services.

“In practical terms I have something to pull out of Germany to get in the UK so I call my haulage partners and say, ‘the pickup point is there, I know you run a truck out of Frankfurt every night that arrives in Heathrow every morning, get on with it.’ I couldn’t care less if it comes through Calais, or on the train, it’s an operational decision for them to make.”

Freight Forwarder, UK (GB)

For those businesses that did plan routes, the key consideration in the planning process was typically timing and delivering within deadlines. The costs involved in transporting goods was another key factor that fed into the route planning, with the price of different crossings and the costs associated with the amount of time in transit being considered. However, cost considerations were often interlinked with other factors in the planning process. Other aspects that were involved in decisions around route planning were the type of good being transported, for example whether goods are perishable or required for Just-in-Time (JIT) production. Driver welfare, particularly in respect of tachograph rules, was also a consideration for many.

Whether the business had a full or partial load was also a key consideration in the planning process. Generally, hauliers always attempted to carry a full load to maximise efficiency. This meant that, where possible, these businesses would attempt to fill a load with goods from other jobs, or to carry goods on the return journey. Therefore, in some instances businesses were required to plan multiple pick-ups on route.

“You’ve got to understand that we’re not going to do one pallet with one truck. We need full loads. Most of our customers do full loads, but now and again we’ll have 26 different pallets from 26 customers to go onto the back of a trailer.”

Haulier, UK (NI)

Customs procedures

Many businesses did not transport goods outside of the EU and so did not have experience in preparing and submitting customs declarations. For those that did transport goods outside of the EU, a few outsourced the preparation of customs declarations to customs agents. These businesses were mostly unaware of how to prepare declarations. The necessary information was forwarded on to their agents to complete the relevant declarations and paperwork for clearances.

The clients of a few businesses completed the customs declarations themselves, while for those businesses that completed declarations on their customer’s behalf, they usually needed various pieces of information from the client, and in a few cases would complete declarations in collaboration with the client.

Where businesses prepared declarations, they needed various pieces of information from the client including a commercial invoice, the packing list, details of the load (such as dimensions and weight), country of origin, and the commodity codes of the goods.

Most businesses viewed the process of completing customs declarations and paperwork as straightforward, often described as a case of keying the information provided by the client into the relevant documents or systems. A few used software to assist this process.

Very few businesses prepared safety and security declarations themselves, with a few still electing to use customs agents for these. Those that did prepare safety and security declarations said it was similar to the process for preparing customs declarations.

Figure 4.1 Current Customs Procedures Case Studies

Customs Procedures Case Study 1: Road Haulier in UK (NI)

1. Client prepares and sends the commercial invoice, packing list, contract of carriage for the goods to the haulier

2. Haulier then sends the client the customs clearance instructions form and the client will instruct the haulier on how to fill it in

3. Commercial invoice, packing list, contract of carriage, certificate of origin (if required) travel with the goods

4. Paperwork is then either presented to customs at the port or airport, or emailed ahead of arrival

Customs Procedures Case Study 2: Freight Forwarder (FF) in UK (GB)

1. Supplier sends the importer the commercial invoice, and packing list which is then sent to the FF before the load arrives in the UK

2. FF has AEO status so depending on the Incoterms the FF will have ownership of the declaration

3. If they have ownership, the FF keys the relevant information from the invoice and packing list into DataFreight which is linked to CHIEF

4. Not all paperwork travels with the goods, drivers currently only travel with a delivery note, or sometimes an excise movement document

Technology

Businesses used a range of technological applications for the different stages of moving goods between the UK and the EU, from booking jobs, to planning and tracking shipments and organising customs documents. 

Most businesses were comfortable with the technology they used as the technology had generally been in place for a long time and so was embedded within the business’ processes and adequately served the technological needs of the business.

Very few barriers to introducing or using new technology were cited, but there was a sense amongst a few that the new systems that were due to be introduced (such as GVMS and Smart Freight^{[footnote 1]} would cost the business in either the time taken getting up to speed with the system or in having to introduce or link technology with new systems.

Technology used for booking jobs

The type of technology businesses used for booking jobs varied. For some, clients emailed or phoned the business to book their services, at which point the business would input the information into their internal systems. Others meanwhile had more sophisticated software for clients to book jobs.

In instances where software was used, this often involved a client-facing portal with Electronic Data Interchange (EDI) functions. Examples of such software used by businesses included off-the-shelf packages like Mandata and MultiFreight, while some had bespoke software. In addition to internal software, some businesses reported that larger clients had their own systems through which information about jobs is communicated to them.  

Technology used for planning and tracking jobs

Hauliers and logistics companies used technology when planning routes and tracking the movement of goods. For planning routes, examples of software businesses used included WebFleet, and Visual Planner. It was explained that WebFleet automatically calculates the best route to take by considering the weight of the load, maximum speed and optimal fuel consumption of each vehicle, while Visual Planner was used by a business as it allowed planners to plan group loads into their routes.

With regards to tracking shipments, this often involved the use of GPS tracking devices being installed in vehicles. Such devices allowed businesses to track the location of vehicles and the speed of travel, and in some cases could even be used to detect vehicle damage. Examples given of such software included GeoTab, NavMan, Mandata, and Acquarias.

Technology used for customs procedures

Some businesses used technology for preparing and submitting customs declarations and paperwork. Various software applications were mentioned by these businesses, including MultiFreight, Ricardo, ONE TMS, DataFreight. Freightfax, ASM Sequoia, and in-house bespoke software packages.

These systems tended to interact with HMRC’s current customs declaration system, CHIEF. Businesses generally found that the use of such technology aided the customs process by automating the submission of documents and producing an audit trail. However, there were a few concerns regarding technological system failures and the impact they can have on the process.

“Technology makes the process easy – the fact we can simply key in the information from the documentation given to us makes life very easy.  When those tools don’t work – CHIEF goes down or other internet issues – then we can’t do anything.”

Freight Forwarder, UK (GB)

Smartphone applications

Some road haulage businesses mentioned the use of smartphone applications by their drivers when the goods are in transit. These were often described as useful as they facilitated communication between the driver and the head office about things like vehicle damage, delays or changes to routes. Furthermore, they were also said to be useful in transferring documents and pictures between the driver and the head office. The applications mentioned ranged from haulage specific phone apps, such as GoCanvas and MobileIron, to more general communication apps, like WhatsApp and Skype.

5. Awareness and understanding of the changes to UK customs

This chapter begins by covering the awareness businesses have of the upcoming changes to customs procedures, before addressing their understanding of the changes. It will include their level of awareness and understanding of specific aspects of the changes to customs, such as the Staged Controls and the GVMS.

Staged controls

Most businesses were aware that controls would be introduced in 3 stages between January, April, and July 2021. The level of their understanding of these staged controls varied depending on their relevance to the goods the business transported to the EU. For instance, businesses that did not ship products of animal origin did not feel the need to gain a deeper understanding of the staged controls as they would not apply to the products they transport.

Businesses that did transport goods that the staged controls applied to felt they had a good understanding of what they entailed and how they would affect their business. These businesses cited the introduction from April of health certificates, compliance with sanitary controls, facilitating inspections at their premises, and pre-lodgment of certain products, ahead of the full customs controls from July 2021.

Opinions on the phased approach varied among these businesses. Some believed the phased introduction complicated preparations and may lead to confusion around when certain requirements would be introduced. Consequently, some businesses planned to transport all their products with full customs controls from 1 January 2021, to avoid confusion and eliminate the risk of not preparing the correct paperwork. A few also felt they may as well start preparing full customs declarations for all their products now as it will be required soon anyway.

“Staged controls actually double the amount of work we have to do and therefore double the charges to our client base, so we’ve told our clients not to bother using them. As far as we’re concerned, we do not wish to support the phased implementation of the so-called simplified customs procedure because it’s actually not simplified, it’s more complicated.”

Logistics, UK (GB)

“The health certs are the most important part of it, so people are saying you don’t need them until 1 April 2021. Now that may be true, but are we going to send a load worth £70k to a port without a health cert for it to sit there for 4 or 5 days? We could bankrupt the business in weeks.”

Road Haulier, UK (NI)

A few businesses also voiced concerns around how some of the controls would be implemented in practice, particularly regarding health certificates that will be required from April. These businesses were of the opinion that for the volume of animal product shipments there would not be enough vets available to complete inspections and award health certificates.

“The only challenges we will start experiencing is the products of animal origin where there is a massive requirement for export health certificates. I don’t think that the councils are ready for the amount of work they are going to have to do to start publishing EC [European Community] certificates and health certificates at premises.”

Freight Forwarder, UK (GB)

However, despite the concerns regarding the practicalities of the controls, the freight forwarder in the quote above found the phased implementation to be a useful and intelligent solution to aid with their preparations for the volume of changes incoming. This business has therefore been able to stagger their preparation and plan their resources accordingly, making the point that if full controls were required from January it would have been too much work to adequately handle.

“I think those 3 controls were cleverly thought out by the government as it’s given us a bit of a gap to at least do a customs entry correctly and phase ourselves into increasing resource over the 6 months.”

Freight Forwarder, UK (GB)

Paperwork requirements

Many businesses were familiar with the information and documents that would need to be submitted under the new procedures. For example, they mentioned the need for Transit Accompanying Documents, Health Certificates, T Forms, and Safety and Security declarations. Generally, businesses felt there was going to be a need for much more documentation than has been previously required.

“Basically, you’re going from buying a ticket to get on a boat, to possibly doing 9 procedures to buy a ticket to get on a boat. Everything is going to need an import and export declaration, they’re going to need an import safety and security declaration. For sanitary goods they’re going to need a declaration on the systems for that.”

Freight Forwarder, EU (ROI)

“I believe we will be exiting the customs union on 31 December at midnight and there will be a requirement for customs controls - transit paperwork, T forms etc to be raised and discharged, and duties and VAT paid where applicable. Essentially we are going back to the pre-1992 era of full customs controls between the UK and EU.”

Road Haulier, UK (GB)

For some though, their familiarity with what would be required was more of an awareness of the need for this documentation rather than an understanding of how to complete paperwork. This was particularly the case for those businesses that did not expect to be completing customs declarations themselves, which was common among hauliers, and who will make use of customs agents or expect their clients to handle any new requirements.

Views of responsibility for new paperwork requirements varied. Some businesses, particularly hauliers, were adamant that their clients needed to prepare and supply all the relevant paperwork prior to loading the goods. In some cases, these businesses have attempted to guide or instruct their clients on what this entails, but for a few they feel it is not their responsibility to do this, particularly with larger clients who should have more resource and knowledge of the requirements.

“I think it’s the exporters and importers responsibility to deal with customs. Some of them will look to their hauliers for help with this but it is their responsibility to prepare the paperwork, we can’t do that for them. We may be able to find them a customs clearance agent but that’s as far as we can go. It’s not up to us to tell the likes of our larger clients what to do but with some of our smaller customers we have to help them.”

Road Haulier, UK (GB)

“I do my best to help them but you have to tell people that it’s their legal responsibility to do all this. These are the businesses that are really going to suffer.”

Freight Forwarder, UK (GB)

Among those businesses that will use a customs agent, there was a sense of trusting the expertise of their agent to handle the requirements allowing them to take a more hands-off approach and focus on the key functions of their business.

“We will be using an intermediary to handle our customer’s paperwork to facilitate the process of moving in/out of EU. I can’t tell you any more than that.”

Road Haulier, UK (GB)

“You need to have confidence in your customs agent to get it right.”

Road Haulier, UK (GB)

Businesses that will be taking on the responsibility of meeting new customs requirements mostly felt prepared and understood what this would entail, however there was a sense that they are limited by the lack of clarity surrounding what the UK’s relationship with the EU will be. This led some businesses to prepare on the basis of there being no deal between the UK and EU, while others were preparing in the hope that a deal could be negotiated, with one business preparing for many potential scenarios.

“We have put in place various contingency plans for whatever may happen over the coming weeks.  It would be very beneficial to us, our customers, the country, and the industry as a whole if those decisions were made sooner rather than later, so everyone can plan accordingly. We have planned several potential avenues.”

Freight Forwarder, UK (GB)

A few hauliers, while aware of what they needed, were unsure about the practicalities of the changes, with particular concern regarding European Conference of Ministers of Transport (ECMT) permits. At the time of interviewing, they were still not aware if they had been awarded permits that would allow them to move goods throughout the EU with this lack of clarity shrouding all other preparations.

“I sit here today not knowing if we can legally operate in the EU in 2021. If you don’t know the answer to this fundamental question - can I legally operate in the EU in 2021? - if you can’t answer that, then all the rest of the questions become redundant.”

Road Haulier, UK (GB)

Some businesses were less familiar with the documents that will be required. They had a general awareness that there would be changes but did not have a detailed understanding. This was because they said there was no deal yet, or that they would wait until January when changes come into effect.

“At the moment, I don’t know. It might catch people out because it has just come up so fast. A lot of people are just sitting waiting to see if there’s a deal or no deal. It should have been thought about last year.”

Road Haulier, UK (GB)

GVMS

Some businesses were familiar with the concept of the Goods Vehicle Movement Service (GVMS) with awareness varying from knowledge of its introduction to an in-depth understanding of the system.

However, although aware of it, most businesses were uncertain of how it would work in practice, with concerns surrounding its integration with their own systems and how it would operate. This stemmed from businesses not yet having sight of the system, or not being able to test it, with a few mentioning that they had signed up for trials of the system but did not end up receiving any communication regarding them.

“We’ve tried to get on the trials but never heard anything back. I don’t have any idea what it’s going to look like or when it will be live. We have the information; we just don’t know what the format is going to be or how we’ll have access to it because we haven’t seen it.”

Road Haulier, UK (GB)

One freight forwarder with a good understanding of GVMS felt the main challenge was going to be the time needed to embed the system into the industry and to link with software companies, to ensure there was not going to be extra work required.

“The industry needs time. 12 months is a reasonable time to build the bridges. It’s not just one level, it’s multiple. If CDS and GVMS are ready you’ve got immediately below them CSPs (Community Service Providers) who control inventories, then below them the major customs software house where our system sits, then below that there’s data being fed in by individual companies’ systems. Everyone needs to be able to key data in, you can’t have armies of people keying data in multiple times, it is about transmission of data.”

Freight Forwarder, UK (GB)

Some businesses were unfamiliar with GVMS. A couple of businesses misunderstood the GVMS to be an automatic number plate recognition system on the NI/ROI border. Businesses put their lack of awareness about the system down to either not needing to know about it or not having been contacted about it.

Other aspects of changes to UK customs procedures

Many businesses were uncertain about various other aspects of UK customs procedures after the transition period ends. Some of the most commonly mentioned were:

The tariffs that would be applied to imports or exports, with businesses based in ROI citing these concerns in particular;

“The unknown for us all is what the implications of the trade agreement will be. We know that documentation will be required, just what will that documentation mean? Is there going to be a tariff? And if there is a tariff how much that tariff will be?”

Logistics, EU (ROI)

How Border Control Points will operate;

“The EU are bothered about freight going into Northern Ireland, and ending up in Southern Ireland, so they want a hard border. Everything that goes into NI, which is the UK, will now have to have an import entry done, and duty and VAT paid in NI, because the EU are worried that 3% of stuff going into NI might go into ROI, and there are not enough agents, on the ground, to actually do these entries.”

Freight Forwarder, UK (GB)

What documents are required at different crossings;

“It’s a vast web of unknowns. Our issues are between the north and the south [of Ireland]. At the moment we don’t need any paperwork, which is brilliant, but we don’t know what the actual paperwork will be for Northern Ireland for goods from Southern Ireland, from Northern Ireland back down into Southern Ireland and from Dublin into Holyhead or Liverpool. Is there a need for safety and security documents because we’re going through Dublin?”

Road Haulier, UK (NI)

6. Preparations for the changes to UK customs

This chapter covers the preparations businesses had made for the changes to UK customs and the extent to which they felt prepared for the end of the transition period. Reflecting on this, the chapter ends with a section on the support needs identified by businesses.

Preparations made by businesses

All businesses had taken steps to prepare for the changes to customs procedures. However, the number and the nature of the preparations made varied. Some businesses had made multiple preparations, such as training staff, introducing technological solutions, and engaging customs agents. Meanwhile, other businesses had made considerably fewer preparations. For example, a couple of road hauliers reported that applying for the relevant licences and permits was the extent of their preparations so far.

The nature of the preparations made by businesses reflected how they planned to operate once the transition period ends. For example, those that planned to manage customs procedures in-house were more likely to have introduced or adapted technology and to have employed new staff, while others had enlisted the services of customs agents.

Training and research

The most common preparation made was educating themselves about the upcoming changes through internal research and training events. Internal research typically involved reviewing guidance published by HMRC, the Department for Transport, and trade associations (such as the Road Hauliers Association, the Freight Transport Association and the British International Trade Association). In terms of training events, businesses had often attended seminars or webinars hosted by government departments and trade associations, and in some cases, customs agents, and software providers.

“We’re attending any courses HMRC or the [customs agent] are putting on, attending webinars, and going on as many training sessions as we can, and also advising customers to do the same.”

Road Haulier, UK (NI)

“We have received a grant from government for all staff here to complete an online customs declarations course – more of a refresher.”

Freight Forwarder, UK (GB)

Linked to the act of educating themselves about the changes to customs procedures, some businesses have been working with their clients to inform them about the changes and what they will mean for the movement of goods between the UK and the EU once the transition period ends. Interactions with clients have often centred on the information clients will need to collate and share about shipments (such as country of origin, incoterms and area codes). A few businesses commented that during such interactions it became apparent that some clients were unfamiliar with the information they will need to provide.

 “We’ve been asking for examples of [clients’] documentation; we’ll be doing a gap analysis to make sure all the information on their current documentation is enough for us to be able to do an export clearance.”

 Freight Forwarder, UK (GB)

Technology

In some cases, businesses had introduced new technology or adapted existing technology to assist with the changes to customs procedures. This included: updating digital booking systems so that information required for customs documents is collected from clients at source; introducing AI to transpose information from order forms and invoices into customs documents; introducing new software or add-ons to existing software to enable customs documents to be prepared; and introducing or updating software so that information can be shared with agents and or the Customs Declaration Service (CDS) automatically.  

“We had to implement new web portals for our customers to upload the commercial documentation and information very quickly, instead of receiving hundreds of emails.”

Freight Forwarder, UK (GB)

“When a job is logged on the system, we will automatically be able to get the details across to our customs consortium, they’ll then automatically apply for the customs documents.”

Road Haulier, UK (NI)

Where businesses had not adapted or introduced technological solutions, this was typically because they planned to use their existing systems when the transition period ends. For example, the freight forwarding businesses quoted below already had software in place which was equipped to deal with customs clearances and therefore did not have any requirement to make technological changes. Furthermore, some of those that planned to use customs agents did not see a requirement for new technology because they intended to pass any work related to customs clearances to agents through their existing systems.

“We use the customs approved system called the ASM Sequoia to make our customs declarations. Come the 1 January, I will use this to raise an export declaration, and send that through to the truck operator… I’m not looking to change operating systems.”

Freight Forwarder, UK (GB)

“Not to start with.  We’ve secured a customs agent so if we have to do anything, we will pass it on to them.” 

Logistics, EU (ROI)

Customs agents

Some businesses had enlisted the services of customs agents to support them with the new customs procedures. These businesses did not think they had the adequate resource and or expertise to deal with customs documents after the transition period ended and so had engaged a specialist third party to conduct this work for them. A few commented that by outsourcing this work to customs agents they were able to avoid making other changes within the businesses, particularly in terms of technological solutions. It should also be noted that some businesses had an existing relationship with a customs agent. These businesses intended to continue to use their services, but on a larger scale than they had done previously.    

“We are part of a group which is a collection of hauliers and brokers who will do the clearances on our behalf which they can offer as a service to our customers.”

Road Haulage, UK (GB)

“As part of our contingency plan we have a third-party customs broker who we have a relationship with and brought them on board as a supplier with the view for them to complete declarations for us because we won’t be able to manage the quantities.”

 Freight Forwarder, UK (GB)

“I think it’s best for companies to not think they can do them in-house quick, and they should trust a customs declarant that can actually guarantee that the declaration that will be filled in properly, because the consequence of messing up the customs duty can cost a lot of money.”

Road Haulage, UK (GB)

Other preparations

Some road hauliers mentioned applying for European Conference of Ministers of Transport (ECMT) permits and EU community licences as part of their preparations. These licences and permits are required from the end of the transition period to allow businesses to operate vehicles above 3.5 tonnes on journeys between the UK and the EU, and vice versa. At the time of interviewing most business had not yet been allocated the licences and permits they had applied for.

“Currently we operate on the EU Community Authorisation Permit, and so do the Europeans. Come January 1, it’s null and void… So, without an alternative permit, my lorries won’t be going across the water.”

Road Haulage, UK (GB)

A few businesses had hired staff in customs facing roles in preparation for the changes to customs procedures. This was most likely to have been done by businesses that intended to prepare customs documents in-house without the use of an external customs agent. Most businesses that had employed new staff had hired one or 2 individuals to oversee the preparation and submission of information for customs clearances. However, one business, a freight forwarder based in the Republic of Ireland, had recruited staff on a significantly larger scale: employing a team of 25 individuals to focus on customs procedures. The business had made this decision because they planned to manage customs clearances in house and wanted to avoid the increase in workload being absorbed by existing departments.

Business views on preparedness

Although businesses had taken steps to prepare for the changes to customs procedures, most did not feel ready for the end of the transition period. This was primarily because, as explained in Chapter 5, many businesses identified elements of the changes to customs procedures that were undefined or unclear.

For example, without an agreement between the UK and the EU in place, many businesses were unsure whether tariffs would be imposed on goods. Some reported that they did not understand what customs documents would be required at border crossings or how the GVMS will function. Others, particularly those that operated in Northern Ireland and the Republic of Ireland, did not understand how the proposed Border Control Points will operate and some businesses were unclear whether they would be assigned the necessary permits and licences to continue moving goods between the UK and the EU.

Uncertainty around such aspects of the changes to customs procedures meant that many businesses questioned the extent to which they were prepared. Although they had made changes, such as introducing technological solutions and engaging customs agents, without a definitive understanding of what the changes will be, they were not confident about the extent to which they were ready to comply with the new procedures. Furthermore, some businesses commented that due to aspects of the new customs procedures being undefined or unclear they had paused preparations or were waiting on more information before making changes.

“We haven’t got into the detailed planning yet, mainly because HMRC comes up with a new [permit] system on the 23 November and before that nobody knows what to do and how to do it and where to do it.  So we are waiting on them to give us information.”

Logistics, ROI

“We are getting guidance from HMRC through the border operating model. The theory is good but at a practical level it’s difficult to understand how it all works. There are still a lot of systems that are not ready yet that HMRC are testing or designing.”

Freight Forwarder, UK (GB)

In addition to discussing the extent to which they were prepared, some businesses also discussed the extent to which their end-clients were prepared for the changes to customs. In many cases it was emphasised that importers and exporters did not appear to be ready. This was because they were often unaware of the information they needed to collate and share for customs declarations and, in a few cases, because they had misconceptions about where the responsibility for customs declarations lies.

“One of our biggest customers is still trying to decide which incoterms their going to use and we’re 50 days out. And a lot of our customers when we’re talking to them, we’ll mention incoterms and they’ll say, what? What are they? Or with an area number, they’ll say what’s an area number? And that’s been part of Brexit for 3 years.”

Road Haulage, UK (NI)

“At the end of the day the supplier or the end user are the ones that need to be prepared for the paperwork and I don’t think a lot of them realise that they think their haulier will provide that.”

Road Haulage, UK (GB)

Although many businesses had concerns about their preparedness for the end of the transition period, a couple of businesses stood out as being more confident about their readiness for the changes to customs procedures. There were only a small number of these businesses, but they tended to be those that had a relationship with a customs agent, those that had experience of dealing with customs clearances due to their involvement in trade with non-EU countries and those located in Great Britain.

“Preparations are going smoothly. We will use our broker to prepare export declarations, as we would for any declarations outside of the EU…we’re ready.”

Road Haulier, UK (GB)

“[Preparations are] going alright. We’ve got an agreement with an agent and we’re working with our customers to make sure they’re aware they’ve got all their commodity codes, that type of thing, so we’re ready to go for the 1 January 2021. We’re ok to be honest. The training courses I’ve been on have been very informative and walk you through what’s coming and what will need done.”

Road Haulier, UK (GB)

Business support needs

Reflecting on the preparations they had made during the transition period and the extent to which they felt prepared for the changes to customs procedures, many businesses identified information and support that they thought would be helpful to enable them to better prepare.

Businesses often emphasised the need to have definitive information about the terms of the trade agreement between the UK and the EU. At the time businesses participated in interviews a trade agreement had yet be agreed, and this meant that there was uncertainty around many aspects of the upcoming customs procedures, particularly in relation to tariffs and customs documents. Uncertainty around the trade arrangements with the EU after the exit of the UK meant that many businesses were unclear about what preparations were necessary and, in some cases, were having to prepare for numerous eventualities.

“The key issue is a lack of preparation and lack of knowing. If a deal had been done a year ago or 2 years ago, actually knowing what the deal is going to be [would have helped]. There will be people selling things in the UK at the moment for delivery next June. The customer, unless very tuned in, will have no comprehension of whether they’re going to need a customs clearance for it and that someone in the UK might have to pay a tariff.”

Logistics, EU (ROI)

In addition to information about the terms of the trade agreement between the UK and the EU, some businesses said they would benefit from more information and clearer information about specific elements of the new customs procedures. For example, the customs documents required at border crossings and how Border Control Points will operate. It was frequently commented that information about the details of the upcoming customs procedures was unavailable or difficult to find, and where it was obtainable, it was often described as being difficult to interpret.

“HMRC guidance is very high level but when you read it the practicality is not always clear and easy to understand. They need to publish earlier to give people time to digest the information and raise the questions.”

Freight Forwarder, UK (GB)

“We need some more clarity and actual answers rather than vague ideas and links to large EU regulations. Some clear and concise answers from HMRC.”

Road Haulier, UK (GB)

Some businesses said that access to the digital systems they will be required to use after the end of the transition period would help them to better prepare. Specifically, access to the GVMS and the CDS systems. These businesses had not had sight of the new systems at the time they took part in an interview and therefore did not fully understand how they would function. It was felt to be important that they had an opportunity to test these systems before they come into effect. 

“We know how to do an export declaration and do a transit declaration. What we haven’t got is the capability to go into GVMS and link the whole thing together and test it to see how everything works together. Not just individually test but also volume test.”

Freight Forwarder, UK (GB)

“We have no access to GVMS at the moment and that’s intensely frustrating because we want to understand it, show our customers where to go and guide hauliers as to how to deal with it.”

Logistics, UK (GB)

7. Expectations for the changes to UK customs

This chapter presents the expectations businesses had for the changes to UK customs procedures. This includes the anticipated impacts of the changes on their business and other businesses in their supply chain, and how they plan to respond to these eventualities.  

Expected effects

The effects of the changes to customs procedures anticipated by businesses were generally negative, with many expecting delays in their supply chain, administrative burden and increased operating costs. However, there were a handful of businesses who thought the changes to customs procedures could be beneficial in terms of an increase in the amount of business they have.

Delays

Many businesses forecast that the changes to customs procedures would cause delays in their supply chains. This is because the need to submit customs clearance documentation before starting a journey, the chance of errors being made in documents and the bedding in period for new systems, both internal and external, was expected to result in queues at border crossings and prolong the process of turning around jobs.

“Big delays at the ferry ports because there will be queues after queues – lorries queuing up to clear customs.”

Logistics, EU (ROI)

“Today we could send a truck, pick it up and it will be here tomorrow or tonight. When you bring the border control points into it and the health certificates, you have to give the border control posts 24 hours’ notice before you can even go in there, so that’s adding time on to our journeys.”

Road Haulage, UK (NI)

“It is important that the communication is made particularly to smaller exporters that it’s not going to be what is was before because they are going to hold up the bigger traders and wholesalers by not having stuff in place and having their heads in the sand.”

Freight Forwarder, UK (GB)

Delays were a particular concern for businesses involved in the movement of time sensitive goods, such as perishable food products and goods used in Just in Time (JIT) production, and those moving goods to or through Northern Ireland. Furthermore, with the expectation of delays at border crossings, a few businesses raised concerns about the welfare of drivers (i.e.in terms of access to food, drink, and toilet facilities).

“I think the biggest challenge, and the biggest grey area is the NI protocol because I think that’s where there’s going to be a lot of frustration and things could grind to a halt. I think we’re already seeing a massive amount of stock held up at ports to the point where it’s backing up all the way up to the production facilities.”

Logistics, UK (NI)

“For certain products there will be a requirement for a vet to attend. I’ve had a look and for the entire Heathrow area and there are 5 vets, which is a massive concern because a lot of meat and fish will need those health certs. The concern is they will take too long to give the certs and with perishables everyday counts. It’s not conducive to the perishable market.”

Freight Forwarder, UK (GB)

Administrative burden

Many businesses expected the changes to customs procedures to result in administrative burden. It was predicted that the process of sourcing, collating, and sharing the necessary information about goods being moved between the UK and the EU was going to be time and resource intensive, and therefore would have cost implications for the business. This was more of a concern for those that were planning to deal with customs declarations in-house without support from a customs agent, though was not limited to these businesses.

“The impact will be resource based. We might maintain our business, but we will have to throw more people at it and the margins will be reduced.”

Freight Forwarder, UK (GB)

“Each consignment is going to require a declaration, so that’s a lot of new admin to be done, especially at the beginning because it will be so new. But eventually it will just become part of the process.”

Road Haulage, UK (NI)

Increased operating costs

In addition to the cost of administrative work, many businesses expected their operating costs to increase because other factors associated with the changes to customs procedures. For example, some businesses expected transportation costs to increase as a consequence of journeys taking longer, which would have a direct cost implication in terms of fuel and driver hours. Other businesses thought that their costs would increase as a result of the salaries paid to staff employed to manage customs clearances or the fees paid to customs agents. A few businesses said that their operating costs would likely increase because, due to expected delays in their supply chain, they may be required to expand or outsource warehousing facilities.

“We may need to increase warehouse space and refrigeration units and people to manage those warehouses, more equipment, and that’s not cheap.”

Freight Forwarder, UK (GB)

“Everything is going to be harder and costs are going to go up.  Duty and tax will have to be paid, and hauliers will take longer getting the freight into the UK and there are costs involved there.”

Logistics, UK (GB)

As discussed in Chapter 6, most businesses reported making preparations for the changes to customs procedures, such as introducing technological solutions and attending training events. Therefore, the expected increase in their operating costs should be considered alongside the costs of preparation incurred during the transition period.

Reduction in business

Some businesses anticipated that the changes to customs procedures would cause a reduction in the amount of business they have. This was typically because they expected EU based exporters to leave the UK market or UK based importers to leave the EU market. Some businesses also said they expected businesses to stop using the UK as a road haulage route into the EU.

The requirement for customs clearance documents and the potential introduction of tariffs was felt to harm the efficacy of moving goods between the UK and the EU. A road haulier based in Great Britain said that one of their largest clients had already made the decision to leave the UK. The client had started to transport goods from South America to Holland rather than the UK as a means of accessing the EU market.  

“For ROI customers if they can get stuff from France or Spain, they won’t have to pay duty and VAT. It’ll just be potentially a longer ferry crossing, so there might be some who decide ‘actually I’ll get my goods from somewhere else’.”

Road Haulage, UK (GB)

‘‘We work with a lot of business, who are making about a 10% margin on goods. I can see customs costs and delays eroding that and effecting it so that it’s no longer viable to [transport goods between the EU and the UK].”

Freight Forwarder, EU (ROI)

Increase in business

Despite most businesses having negative expectations for the end of the transition period, a handful were optimistic and expected the changes to customs procedures to benefit them in terms of an increase in the amount of business they have. This was because they thought demand for the some of the services they offer would increase, with a couple of businesses reporting an uptake in demand already. For example, a few businesses felt that their experience and expertise in dealing with customs declarations would attract more clients. Meanwhile, one business expected the warehousing service they provide to be in higher demand.

“One of the opportunities for us is that we can look after a lot of the paperwork for customers. The other opportunity is that we have our customers coming to us and saying do you have the capacity to take extra stock and build up stock. So, there is definitely opportunity there.”

Logistics, EU (ROI)

“We’re anticipating more because of the customs brokerage element we’ve taken on. Work will increase. Quite a lot of new people have approached us for the customs brokerage element, which we’ve had to decline because we’re at full capacity.”

Freight Forwarder, UK (NI)

Expected response

Reflecting upon the expected impacts the changes to customs procedures would have on their business, some discussed how they planned to change the way they operate in response to these eventualities.

Where businesses anticipated an increase in costs, some said they would likely have to increase their prices to compensate for this. These businesses expected direct cost from customs declarations and checks and in-direct costs related to increased administrative work and journeys taking longer to complete.

“If you look at import documentation, that’s between £35 and £100. If you’re talking health certs, that could be £600 for a vet to come and visit your site. To have a health cert issued at a border control point you’re talking £55. All these costs are going to come up and the hauliers aren’t going to pay for this, we’re going to transport these costs on to the customer.“

Haulier, UK (NI)

“It will be an extra cost for us, not much benefit but an increase in our rates and finally the consumer will have to pay the price for all that.”

Logistics, EU (ROI)

In a few cases businesses planned to make changes to their business model by adding or expanding the services they offered to clients. For example, as mentioned in the previous section, a few businesses had plans to increase their warehouse capacity and others intended to expand their offering of customs clearances as a service.

Furthermore, a few businesses based in the Republic of Ireland said they were considering changing the routes they use to access mainland Europe. Due to concerns about delays at border crossings and with the knowledge that customs clearances would be required, they intended to stop taking shipments by road through Great Britain and instead planned to use ferry crossings to the likes of France and Spain.

“If there is no urgency on the shipment then I think we would always look for a solution where we don’t go through the UK and use the land bridge. The trade-off would be that it costs you an extra day, or 2 days even, but you won’t have the customs procedures.”

Logistics, EU (ROI)

Appendix A: Summary of findings for businesses in the Republic of Ireland and Northern Ireland

As part of this research project, 4 businesses based in the Republic of Ireland and 3 businesses based in Northern Ireland were interviewed. Table 8.1 presents a breakdown of these businesses by sector.

Table 8.1: Participating ROI and NI businesses by sector

Sub-sector	Republic of Ireland	Northern Ireland
Road Hauliers	2	3
Logistics Companies	2	0
Total	4	3

The findings from interviews with businesses based in the Republic of Ireland and Northern Ireland about how they currently operate, their use of customs declarations and paperwork and their use of technological applications were broadly in line with the findings from interviews with businesses based in Great Britain. However, there were some differences compared to other businesses in terms of their understanding of the changes to customs procedures and the expected effects these changes would have.

With regards to their understanding of the changes to customs procedures, businesses located in the Republic of Ireland and Northern Ireland frequently mentioned uncertainty around aspects of customs procedures that were specific to the movement of goods across the Irish border or across the Irish sea between Northern Ireland and Great Britain. For example. whether tariffs would be applied to goods moving across the Irish border and between Northern Ireland and Great Britain; how the proposed Border Control Points between the Republic of Ireland and Northern Ireland would operate; and what documentation would be required for goods moving between across the Irish border and between Northern Ireland and Great Britain.

With regards to the effects the changes to customs procedures were expected to have, Irish and Northern Irish businesses were more likely to expect there to be delays in their supply chain, particularly those that transported goods between the Republic of Ireland and Northern Ireland, and between Northern Ireland and Great Britain. Some of these businesses anticipated that their operating costs would increase because of delays and the work involved in preparing customs paperwork. Furthermore, a few businesses based in the Republic of Ireland said they were considering changing their routes so that shipments to mainland Europe were no longer taken by road through Great Britain, but instead transported directly by ferry.

Although many Irish and Northern Irish businesses had negative expectations of the effects of the changes to customs procedures, it should be noted that there were a few that thought the changes could carry an advantage. This is because they thought the demand for some of their services, such as warehousing and dealing with customs clearances, would increase.

Appendix B: Polish road haulier case study

Background

As part of our research, one business we interviewed was a road haulage business based in Poland. They transported goods on a regular basis to the UK, as well as to EU and non-EU countries. The business transported all types of goods, with the most recent shipment made to the UK being a load of electric consumer goods.

Current operations

They typically transport goods to the various places in the UK via lorries starting Poland and crossing through Dunkirk or sometimes through Calais. Once in the UK the lorries pick up goods for the return journey. The business has little to no technology in place – email was the only thing mentioned. For non-EU journeys clients and freight forwarders deal with customs declarations.

Awareness and understanding

The business was unfamiliar with the planned changes to customs procedures. It was mentioned that they had attempted to find information about the changes online but were unable to. 

“I don’t have the slightest idea. I tried to find out from different websites and government websites, but I didn’t find anything. I talked to a few bigger clients of mine who are also trying to prepare, but no one knows anything.”

They feel the lack of information will bring direct challenges for their business, especially because it has meant that they have been unable to prepare.

Preparations

Due to a lack of awareness and understanding, the business has not made any preparations.

“I’m not preparing myself because I have no solid guidelines, so how am I meant to be preparing? When I get the info on what the changes will be and how I’ll need to prepare, then I’ll start […] I don’t know what I would be preparing for and so I am not preparing, because there is no precise information, it could also be that the transition period would get extended by another half a year or a year.”

Although they felt unable to prepare, the businesses did not necessarily feel unprepared. They had experience of dealing with customs declarations for non-EU countries and expected the process to be similar. They felt that the staged controls would not be a completely new terrain as some controls were already in place in the industry.

“Some controls happen already so it wouldn’t be a totally new thing. It would just be good to know what documents are needed and what criteria needs to be met.”

However, the business did express a hope for new technology to help with the adjustment.

“I hope everything can be done remotely to not worry about it (…) I hope it will be some sort of an app that would collect information about drivers at crossings (when they drive in and out etc.).”

Expectations

They felt unable to predict any impacts of the changes. This was partly due to being unfamiliar with the details, but also because of the unknown effect of other forces, particularly COVID-19.

Appendix C: Northern Irish road haulier case study

Background

A road haulage business based in Northern Ireland. They specialise in the storage, transport, and distribution of food products (sourced directly from producers and wholesalers); typically transporting frozen meat between GB and NI, or the UK and ROI, but also to clients in France and Italy.

Current operations

Trade is mostly between GB and NI; typically transporting goods from NI to ROI then moving goods to GB by ferry, from Dublin to Holyhead. The biggest considerations in route planning were cost and efficiency. The business did multiple pick-ups and or groupage loads when they do not have a full load and the journey allows it. Jobs are booked and managed through Mandata.

“Multiple pickups happen all the time. There will be one pallet picked up from Belfast, one pallet picked up from another port and they’ll all be put on a groupage load and sent out. Or we won’t get a full load or don’t get a full load. If we get a full load, we’ll run them straight from the pickup point or bring them back to our depot for storage until they are ready to be moved on to the customer.”

Awareness and understanding

The business had a vague awareness of the changes but found it difficult to understand how it would work in practice. Due to many interpretations of the rules across the industry, they felt there was a lot of confusion around who is responsible for completing the safety declaration - the client or the hauliers – and their understanding is that this will be the client’s responsibility. Their main concern was how the transport of goods between GB, NI, and ROI would work, particularly regarding what documentation would be needed for which border crossings and how Border Control Points will operate.

“It’s a vast web of unknowns. Our issues are between the north and the south at the moment we don’t need any paperwork, which is brilliant, but we don’t know what the actual paperwork will be for Northern Ireland for goods from Southern Ireland, from Northern Ireland back down into Southern Ireland and from Dublin into Holyhead or Liverpool. Coming back from GB to NI we need import documentation but going back out from NI to GB we don’t need that documentation, we just need a safety and security document, so it is quite confusing what we need for each journey.”

Preparations

Despite not having confidence in the practicalities of the planned changes, the business has prepared by joining a customs consortium, a group with customs expertise that will assist with customs processes for the haulier’s clients. They have also conducted staff training, employed staff that specialise in customs information, and are working closely with clients to ensure they are aware of the upcoming changes.

“When a job is logged on the system, we will automatically be able to get the details across to our customs consortium, they’ll then automatically apply for the customs documents and all our paperwork will be done through the consortium.”

Expectations

They did not expect an impact on their level of business but did feel a concern for their business reputation if they experience delays at ports when competitors do not.

“If we start getting our trucks stuck at ports and customs areas and a competitor of ours is going through then obviously our reputation will be damaged and our customers will start going elsewhere.”

They expect a lot of delays due to confusion around which rules apply for transporting goods between NI, GB and the ROI.

“NI and ROI, there is no paperwork needed. It’s only when we go to Holyhead is where it comes in, so when we’re going from Belfast to Dublin and out of the port into Holyhead or vice versa it’s very unclear how they’re going to manage the paperwork and how they’re going to manage all the lorries and trucks going through the border control points.”

Delays are also expected due to customer confusion and lack of preparation for what is needed.

“One of our biggest customers is still trying to decide which Incoterms they’re going to use and we’re 50 days out. And a lot of our customers when we’re talking to them, we’ll mention Incoterms and they’ll say, ‘What? What are they?’ Or with an area number they’ll say, ‘What’s an area number?’ And that’s been part of Brexit since 3 years ago.”

1. This is now called the Check an HGV is Ready to Cross the Border Service. ↩