Fuel price

EU Exit Update

With the recent updates and the new government campaign on the EU Exit, we at DACHSER wanted to inform you of some key points that have arisen that you may find relevant for your organisation.

While trade talks continue to progress slowly, the month of June presented the last opportunity for the UK Government to extend the transition period currently due to end on 31 December 2020.

The date passed with no request for an extension, and now the focus is on a phased introduction to customs controls in the UK as of 1 January 2021. The transition phase will allow traders to recover from the impact of COVID-19 and to prepare for the new requirements. The UK will be subject to full customs control at its borders by 1 July 2021.

Earlier this year, the UK Government took steps to remove certain customs easements, including Transitional Simplified Procedures (TSP), and Post VAT Accounting (PVA). However, they have reconsidered and understood there is a need for some customs easements to be in place.

As a result, we have seen the reintroduction of postponed VAT accounting and a new form of the import process to enable the importer of record to account for their shipments by creating an entry into their records. Further information on this process can be found on the GOV.UK website.

On 12 July 2020, the Government announced funding of £705 million to build border facilities, invest in new technology and to create 500 new jobs within the border force to give further development of the infrastructure in preparation to the EU exit. Within this amount, there is £50 million available to support with training and IT equipment to complete customs declarations which you may be able to benefit from.

There will be an EU Summit Meeting for final discussions between the UK and EU on 17-18 October 2020. Finally, on 19 October 2020, we should see the summary and conclusion of a deal or no-deal scenario. 

We should not lose sight that regardless of the outcome of these discussions, customs administration will be necessary on all goods entering and exiting the UK as of January 2021, albeit in a phased approach.

The UK Government have also announced ‘The UK’s new start: Let’s get going’ campaign which is designed to give everybody easy and quick access to information and actions that people and businesses need to take to prepare for the end of the transition period.

Download the full communication below that includes further useful links and information. 

Chinese New Year: Impact on logistics

In 2021, Chinese New Year falls on February 12, it is the biggest festival in China where people celebrate the beginning of a new year with their families. The week-long national public holiday has consequences on global supply chains. 

The following information provides an overview of some key facts of the festival and its possible impacts on logistics.

Dates and key facts

• February 12, 2021 marks the start of the Chinese New Year (the year of Ox).
• Chinese national holiday begins on February 11 and ends on February 17, meaning that most of the businesses, including DACHSER branches in China, will be closed and resumes on February 18.
• Factories and manufacturing sites used to be closed for a longer period of time. Production might pause already one week before Chinese New Year, some factories will only resume one month after.
• The long holiday allows workers in the city to travel back to their hometown for a family reunion, though it might not be the case this year due to the pandemic.

Impact on supply chain

• Extensive holidays in China can lead to delays to your shipments for up to one month.
• Due to the abovementioned closing period of manufacturing industries, there will be no productions from China for at least a week. Even though factories will be restarting gradually, operations will not resume to full swing immediately.
• Productions from other countries in Asia will also be impacted as some parts might come from China or the assembling processes are done there.
• Most shippers will stock up inventories that are sufficient to cover the Chinese New Year period, this leads to a pre-holiday cargo rush; it will also take some time after the festival to normalise the market conditions.

To avoid unnecessary price hikes and delays, it is strongly recommended to place bookings well in advance. At DACHSER, our logistics experts can help you to plan together. Feel free to discuss with us about your needs and we can work out the best to maintain your supply chain uninterrupted throughout the Chinese New Year.