According to research by the British Chambers of Commerce and the Port of Dover, more than a third of traders rely on last-minute delivery of items – but 33% of those affected have not started planning for changes to customs procedures.
The research found that 29% of companies have business models that would be impacted by delays or congestion at UK and European ports, but had not begun planning to mitigate these delays.
Around 36% of traders surveyed for the report said they relied on immediate delivery of materials or components, meaning any changes to the way the UK’s borders with Europe function after the withdrawal from the EU could impact their business significantly.
Brexit and EU law expert Guy Lougher of Pinsent Masons, the law firm behind Out-Law.com, said: “The report is a timely reminder of the potential for red tape post-Brexit to disrupt supply chains, and especially for those businesses that run a just in time delivery system.
“Businesses need to work through how their supply chains might be affected by Brexit and take appropriate action. For some, this may mean changing suppliers, building up inventory levels or reconsidering ports of entry and exit,” Lougher said.
The report said approximately a third of the UK’s trade in goods crosses the English Channel in lorries via the Port of Dover and Eurotunnel.
More than two thirds of companies said they would not move their operations from their existing UK port to another port in the UK in the next three years, but 30% said the infrastructure leading to and from ports was not meeting their business needs.
The government published a Trade Bill, setting out provisions to allow the UK to transition between existing EU trade agreements with third countries and its own arrangements, in November last year. In March the European Council produced guidelines mandating chief Brexit negotiator Michel Barnier to negotiate the terms of a new free trade agreement between the EU and UK.
Prime minister Theresa May has repeatedly ruled out remaining in the EU single market after Brexit, but clearer information on what types of checks will be needed at the border is still not available.
British Chambers of Commerce director general Adam Marshall said: “Firms need to know what checks and declarations they will have to go through on trade with the EU – and need to start planning for the changes ahead.
“Business needs to look hard at how they will operate under new conditions in the future, but the same applies to the government. If there is to be minimal friction between the UK and the continent, then physical infrastructure such as inland clearance, IT systems for quick risk assessments, as well as agreements on no doubling up of checks between the UK and the EU, must be implemented as soon as possible,” Marshall said.