SMMT survey reveals £735m cost of Brexit

Most companies across the industry (67 per cent) said they were doing everything in their control to prepare for new processes that will come into play on 1 January, with 70 per cent securing GB Economic Operators Registration and Identification (EORI) numbers, 60 per cent spending significantly on stockpiling, and 52 per cent employing customs agents as companies try to prepare for disruption to supply chains. 

Significant gaps in the industry’s ability to plan still exist, however, with almost nine in ten firms (86 per cent) saying that the lack of clarity on the nature of the UK-EU’s future relationship has hampered their efforts.

Clarity on the operation of new key customs systems such as the Goods Vehicle Movement Service (GVMS) and the Permission to Progress (P2P) process has been described by SMMT as ‘vital’ to the industry. In addition, there is uncertainty as to how companies will prove origin of products even if the UK and the EU do conclude a Free Trade Agreement (FTA), meaning firms will not be able to benefit from preferential trading terms.