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Impact on manufacturing and SMEs

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    Impact on manufacturing and SMEs

    Outside the SM+CU will not be the reduction in red tape or frictionless trade that Brexiters expect. Devastating for many small business owners (and their families and employees) across the U.K.

    The 48 and Beyond : Why Brexit Will Devastate U.K. Manufacturers: A Rare Treat to Boring Facts

    We process around 40 orders a week, retail, wholesale the lot, order value average £400, between £5 - £20,000. We are good at what we do, and compete with Chinese made, American marketed products. I can process and ship around 20 UK or EU orders per day, because an EU order takes about 45 seconds longer than a UK one (declare value from the invoice I have to make anyway, email customer tracking number). Shipping to the EU costs £13 for a box up to 35 kilos (yes, it’s that cheap), so no issue to recover from customers. Once a month I need ½ hour to send ESCL and Intrastat reports to HMRC as part of EU export. BUT the minute I go to countries outside the EU, but in the customs union i.e. Norway, Switzerland etc, I must: produce 5 extra invoice copies, with a manufacturers declaration, harmonised commodity code (to be fair we do that anyway now in our product data), and manually sign them = plus 20 minutes, and time is money. Then I must pay a £25 customs clearance fee – so I can no longer split shipments, and be flexible for the customer, because that fee is per shipment, regardless if 1 box or 20. Then if an order for Switzerland is over £6k, I must apply for for SD11 (I think) from the Chamber of Commerce, wait to receive it and complete it = add 2 weeks for form to come back and at least 2 hours (profit slips away).

    For non-EU shipments same story with 5 x customs invoice (10 for UPS, sorry guys but you do lose them all the time); and a much longer process for booking shipment – for larger waiting for quotes for air versus ocean shipment (not an issue for Europe, goes on lorry through tunnel), and also supply packing lists, airway bill or bill of lading copies to receiver and shipper, for China and Australia I must produce declarations regarding “no wood” packaging. There is frequently additional work to check the package status, provide extra documents or information etc – all of this is not profitable. We instinctively prefer EU work to non-EU.

    #2
    Originally posted by meridian View Post
    Outside the SM+CU will not be the reduction in red tape or frictionless trade that Brexiters expect. Devastating for many small business owners (and their families and employees) across the U.K.

    The 48 and Beyond : Why Brexit Will Devastate U.K. Manufacturers: A Rare Treat to Boring Facts
    what to say, get used to it

    Milan.

    Comment


      #3
      Sounds like another winge, have to do a bit of paper work ffs.

      Comment


        #4
        Originally posted by woohoo View Post
        Sounds like another winge, have to do a bit of paper work ffs.
        Try filling out forms while you're having your cake, eating it and holding all the cards.

        Comment


          #5
          Originally posted by woohoo View Post
          Sounds like another winge, have to do a bit of paper work ffs.
          Paperwork costs time and money. As contractors we understand this, which is why we pay accountants to prepare and file payroll, VAT, etc.

          Unlike contractors, though, these are proper SMEs that are operating on very thin margins and yet still supporting employees and their families. An increase in paperwork and operating expenses will be tough.

          Good to see your detailed and empathetic rebuttal though.

          Comment


            #6
            Originally posted by woohoo View Post
            Sounds like another winge, have to do a bit of paper work ffs.
            You do understand that an increase in paperwork means an increase in time. Extra time means extra costs. Extra costs means reduced margins and profits. Reduced profits lead to reduced headcount. So yes, he is complaining, but that's because he can see this extra red tape leading to some people losing their jobs.

            But hey, so long as you're happy with your blue passport all is good.
            I am what I drink, and I'm a bitter man

            Comment


              #7
              You only have to do it if you accept this is all there ever is and nothing will change.

              How many times do you have to be told that for change you need to stop clinging to the past.

              Comment


                #8
                Originally posted by original PM View Post
                You only have to do it if you accept this is all there ever is and nothing will change.

                How many times do you have to be told that for change you need to stop clinging to the past.
                Correct, instead of clinging to the past, why not just return to it [emoji1] [emoji20]
                Brexit is having a wee in the middle of the room at a house party because nobody is talking to you, and then complaining about the smell.

                Comment


                  #9
                  Originally posted by darmstadt View Post
                  Correct, instead of clinging to the past, why not just return to it [emoji1] [emoji20]
                  Because we have not invented time travel?

                  You guys are supposed to be contractors.

                  How many times do you go into a client to work on a change program and all you get met with is the existing management saying it will never work?

                  When what they really mean is they have carved a comfy niche for themselves and spent a lot of time and energy get the current systems to where they are now and they can never be made any better?

                  Comment


                    #10
                    Ah, lets just **** up the manufacturing base: https://www.ft.com/content/b9ff0c10-...5-873e61754ec6
                    Brexit is having a wee in the middle of the room at a house party because nobody is talking to you, and then complaining about the smell.

                    Comment

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