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Monday, 10-05-2021

Brexit as seen from Britain

cyber-Wear reacts to the German–British trade agreement with a structural reorganisation for some customers. In future, all British customers will be serviced from the UK and all European customers from Germany.

2020 was certainly a year the likes of which none of us have ever experienced. The news that a trade agreement would be concluded between the United Kingdom and the European Union was a great relief to us, just as it was for many other companies. But as we got started again in January, it became clear that, despite everything, we would have some hurdles to face.

The UK’s exit from the EU will have both financial and operative effects on the entire economy, but particularly in our sector. In the first three months of 2021, this has already led to some changes and problems in the process flows.

Operational effects: Never in my wildest dreams had I imagined that it would be quicker and easier to send goods to America than to for example Germany. As an international business, we have lots of experience in international logistics, but many businesses were clearly unprepared for the changes that came into effect on 1 January 2021. At the same time (and definitely on this side of the Channel), it was unbelievably difficult to get answers to important unresolved issues from the various different bodies and authorities.

The results are incredibly sobering, because it seems as if every consignment is treated differently. One will be approved by customs without delay, yet another, with the same details and exactly the same documentation, will be delayed and only arrive after up to three weeks. We are however convinced that it is only a matter of time until the structures bed down and the procedures are implemented uniformly, and that the entire processes can once again run without problems.

Financial effects: I personally consider the financial/structural effects as being the greater challenge, and as something that ultimately, businesses on both sides of the Channel will be able to have a considerable influence on in respect of short and medium term planning. The first noticeable differences are the costs of sending goods from GB to the EU and vice versa. The costs for individual UPS packages have increased, to take into account the necessity of customs clearance processes. These will inevitably be passed on to consumers, and customers on both sides of the Channel are quite rightly expressing concerns.

A second point is that the many products in the sector manufactured in Asia are now being taxed twice. This is because goods from Asia mostly arrive in EU ports, from where most importers take them to a central warehouse. Only from there are they forwarded to the considerably smaller warehouses in GB. The goods are therefore subject to duty upon importation into the EU, and then again a second time when they are exported to GB. This, combined with already increased logistics costs from Asia to the EU, and also from the EU to GB, is an immense problem in the entire supply chain.

Within the Cybergroup we have decided to reorganise our structures for some customers, to ensure that all businesses based in the EU are serviced from Germany and all British customers from GB. This should ensure that we remain competitive and able to continue the business.

One thing is certain: even though, thanks to progress with vaccinations, there is light at the end of the tunnel, it still looks as if 2021 will bring its own challenges. Something we have definitely learned in recent months is that new challenges always bring positives with them, even if ‘only’ being able to rethink things and adapt. This leads to new approaches, and ultimately new opportunities.

The Cybergroup is known for constant evolution, and we are certain that, after emerging from the tunnel, corona and Brexit will help drive us forward. To achieve this objective, we are working together, hand in hand, every day, on both sides of the Channel.