DPD Local Getting Brexit Ready

Brexit

DPD Local is fully engaged in the Brexit process and has detailed plans in place.

Since the Brexit vote DPD Local has:

  • Formed a dedicated Brexit working group
  • Hired political affairs and customs experts
  • Lobbied the government to keep trade agreements
  • Worked with key departments - DiT, HMRC, HM Treasury - to have our say on behalf of our customers

What will DPD Local do next?

  • Remain fully engaged in the Brexit process
  • Ensure our interests are taken into account - no tariffs and free movement of goods
  • Publish regular updates to our customers

We know you have some important questions about Brexit...

What is the latest on Brexit?

The UK will leave the EU on 29 March 2019. The UK and EU have provisionally agreed on some major issues but are now focusing on key details. The two sides have agreed on a 21-month transition period, which ends in December 2020, to smooth the way for post-Brexit relations.

Negotiations continue between the UK and EU, and an announcement is expected in mid November with more information on the terms of the deal.

What if there's No-Deal?

The UK government has been planning for a no-deal scenario, while stressing it's unlikely.

If the UK leaves the EU with no-deal by March 2019, EU parcels would be treated the same as rest of world (ROW) parcels.

What does a no customs agreement mean for cross-border shipments?

Currently there is free movement of goods between EU countries. However, if there is no customs agreement post Brexit, parcels are likely to incur duties and require customs clearance.

Working with our customers in the no-deal Brexit world

With no trade agreement in place DPD Local would need to treat your EU-bound parcels the same way we currently treat your rest of world (ROW) parcels.

Exporting to and importing from the EU

In the recent Technical Notes issued by the government on 23 August 2018, businesses are advised to:

Put steps in place to renegotiate commercial terms to reflect any changes in customs excise procedures and any new tariffs that may apply to UK-EU terms.
DPD Local has already started to amend contracts to reflect this clause, and we recommend that our customers do the same with their contracts.

Businesses should consider acquiring customs software and/or engage a customs broker.?
DPD Local has already put measures in place to accommodate the customs clearance process, and our customers can also rest assured that, being AEO accredited for both customs and security, we are well placed to handle their exports into Europe.

Businesses must use product classification codes and check whether any of their goods need an export licence.
This will be essential to ensure your customers pay the right amount of duty, and we recommend that you start the process early by using the government website for classification of goods (see 'Sources' section for a link to the government website).

In the event of no trade agreement being in place, you will need to provide commercial or pro forma invoices with the data for us to be able to export your goods. For customers that generate labels direct from the 'My DPD Local' facility on www.dpd.co.uk, this service will be updated in time for when we leave the EU to allow you to generate these easily and remain compliant.

DPD Local guide to Brexit jargon

No-deal
A scenario in which the UK leaves the EU with no formal agreement on the terms of the UK's withdrawal or new trade relations. At 11pm GMT on 29 March 2019, the UK would default to WTO rules.

Soft Brexit
Leaving the EU but staying as closely aligned to the EU as possible. It could keep the UK in the single market or the customs union or both. It could involve British compromises on free movement of people, allowing EU citizens rights to settle in the UK with access to public services and benefits. 

Hard Brexit
Leaving the EU and leaving both the single market and customs union. It could mean ending the right of freedom of movement between EU countries, the UK needing to pay money to be a member of the EU, and EU law overriding UK law.

Norway Model
An arrangement in which the UK would have to allow freedom of movement of people, make a contribution to the EU budget - smaller than it currently makes - and abide by the rulings of the European Court of Justice, in exchange for remaining in the single market.

Canada Model
Refers to a free-trade agreement between the EU and Canada which removes lots of barriers to trade between the two, but not as many as the Norway model - and which involves signing up to more EU rules and contributing to the EU budget.

Customs Partnership
This proposal, also known as the hybrid model, would enable trade in goods between the UK and Europe without the need for customs checks. Some say it would help solve the Irish border question too, as the UK would collect the EU's tariffs on goods coming from other countries on the EU's behalf. If those goods stayed in the UK and UK tariffs were lower, companies could then claim back the difference.

More information

If you want to read more information on how DPD Local is getting Brext ready, please download our guide here.

HMRC are helping businesses prepare for leaving the EU with 8 million pounds available for training and IT improvements in customs declerations. To find out more, apply here.

If you would like to speak to our team about Brexit, please get in touch with our team here.