CUSTOMS PROCEDURES STILL HOLDING BACK UK EXPORTS

• Major survey of UK businesses finds customs procedures remain the top barrier to exporting (cited by 45% of companies)

• 40% of firms say geo-political events have impacted their business over the last year

• 37% of exporters anticipate an increase export business over the next 12 months, but 91% of non-exporters do not expect to export

• Most exporters are not familiar with new or upcoming trade changes

Customs procedures continue to be the main export hurdle for UK companies, according to a major new survey of businesses by the British Chambers of Commerce Insights Unit, published during International Trade Week. 

Over 1,300 businesses took part in the online survey during July and early August.

Top perceived trade barriers

When asked what businesses (regardless of whether they export or not) perceive as the main trade barriers, 45% of cited customs procedures and documentation as the top answer. That’s slightly down on the 2023 figure of 49%. Other top barriers cited include export documentation (39%), regulations and standards (35%) and tariffs (33%).

40% of companies say geopolitical events have significantly impacted their business in the last 12 months. Issues linked to the war in Ukraine, conflict in Gaza and Brexit are cited as the main events impacting trade. They include energy costs and shipping delays.

37% of exporting businesses expect an increase in exports over the next 12 months, with 16% expecting a decrease. Manufacturers are the sector most likely to expect an increase in exports.

When asked what most would do to encourage them to export, businesses cited a need to improve access to the EU market, simplify trade regulations and reduce bureaucracy, and provide greater export support.

Worrying lack of awareness for incoming trade changes

The survey shows awareness of incoming trade changes is low among firms who are actively doing business internationally. 65% of respondents are unaware of the Border Target Operating Model. Ahead of the UK joining the Asia Pacific trade bloc CPTPP in December, over half of respondents (53%) are unaware of the plans. 52% of firms have no knowledge of safety and security certificates needed from this month for imports from the EU.

The launch of new biometric checks for foreign travellers, including Britons, entering the EU has the highest level of preparedness from business. 34% of respondents are not aware and 37% know some details or are actively preparing for the change, due later this year.

William Bain, Head of Trade Policy at the British Chambers of Commerce said:

“Though the picture has improved slightly in the last 12 months, customs procedures remain a significant stumbling block to trade for businesses. Successful exporting businesses are crucial to a thriving UK economy. We need roadblocks lifted to allow more companies offering their goods and services on the global stage. Our forecasts show the trading environment will continue to be challenging over the coming years, against a backdrop of geopolitical uncertainty.  We’re urging the Government to continue the implementation of customs simplification started by the last administration. Businesses also need to see a clear timetable for further trade digitalisation which will help reducing costs and border friction.”

More info: www.britishchambers.org