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Britain's contribution to EU JiT Manufacturing after Brexit

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    Britain's contribution to EU JiT Manufacturing after Brexit

    Serious question.

    After Brexit why won't the existing TIR system suffice with regards to transporting components used in production across Britain and Europe?
    Old Greg - In search of acceptance since Mar 2007. Hoping each leap will be his last.

    #2
    Originally posted by Zigenare View Post
    Serious question.

    After Brexit why won't the existing TIR system suffice with regards to transporting components used in production across Britain and Europe?
    TIR certainly helps to facilitate cross-border trade, but it’s not a cover-all panacea.

    Firstly there’s the cost of additional customs declarations. These will be required regardless of border facilitation to cover things like declarations of country of origin, conformity to specifications, etc. I know that this is not your specific question, but bear with me here.

    Although TIR facilitates trade, it is not frictionless across a customs border (which is what we currently have with the EU). The combination of RoO declarations and checks and other customs checks means a short delay. Estimates of even a few additional minutes checking documentation would increase tailbacks and waiting times - so although the actual physical checks on documentation increases by only a couple of minutes, the waiting time increases by hours.

    This could be avoided by heavy investment in additional checking stations and manpower, but there’s little evidence of this happening yet. Other ports (eg Holyhead) simply don’t have the room to expand.

    Secondly, there is not (or will not be) an automatic right for a driver in the U.K. to drive commercially in the EU and vice versa. Indications are that licences will be provided, but not nearly enough to cover the entire haulage industry. Either additional licences need to be negotiated, or “swapping stations” need to be built on both sides to facilitate container swaps. The time in swapping containers over increases overall transport time.

    Companies themselves can mitigate somewhat by building extra warehouse space, which was the whole point of JIT anyway - additional costs for them in building and maintaining warehouse space instead of using mobile storage locations when the components are in transit.

    A lot of this will be mitigated by the loss in manufacturing here anyway. Rules of Origin in existing FTAs means that manufacturers will need to change their sources to ensure they still fit within the parameters.

    In my opinion, the JIT aspect of the issues can be mitigated through retiming the routes. Companies will suck up extra customs declaration costs and pass those on to the consumer. The really hard bits are the political will to spend a lot of money increasing capacity at the ports, and the Rules of Origin in the FTAs which will force changes to the supply chains.

    Comment


      #3
      I didn't know what the TIR carnet was - I had to look it up.
      If your question was a serious one rather than trying to appear cleverer than you are, you could have done the same.

      Here's a link I found:
      https://www.centreonconstitutionalch...%20_Goods_.pdf

      It seems that a TIR carnet is only part of the documentation that would be required if full customs clearance was to be reintroduced.
      So just another bit of red tape.
      Would JIT (the clue is in the name) still be JIT with extra delays?

      The fact is even Economists for Brexit agree than manufacturing will be deader than a dodo post-Brexit for this and many other reasons.
      Last edited by sasguru; 22 June 2018, 11:35.
      Hard Brexit now!
      #prayfornodeal

      Comment


        #4
        Originally posted by sasguru View Post
        I didn't know what the TIR carnet was - I had to look it up.
        If your question was a serious one rather than trying to appear cleverer than you are, you could have done the same.

        Here's a link I found:
        https://www.centreonconstitutionalch...%20_Goods_.pdf

        It seems that a TIR carnet is only part of the documentation that would be required if full customs clearance was to be reintroduced.
        So just another bit of red tape.
        Would JIT (the clue is in the name) still be JIT with extra delays?

        The fact is even Economists for Brexit agree than manufacturing will be deader than a dodo post-Brexit for this and many other reasons.
        You have googled and added the square root of **** all to the discussion apart from a thinly veiled insult. Seriously, grow the **** up - or preferably, **** off.
        Old Greg - In search of acceptance since Mar 2007. Hoping each leap will be his last.

        Comment


          #5
          Originally posted by Zigenare View Post
          You have googled and added the square root of **** all to the discussion apart from a thinly veiled insult. Seriously, grow the **** up - or preferably, **** off.
          Oh dear - haven't dealt with your anger management issues yet? Both of the above posts point out to delays, can you not read?
          Hard Brexit now!
          #prayfornodeal

          Comment


            #6
            Originally posted by sasguru View Post
            Oh dear - haven't dealt with your anger management issues yet? Both of the above posts point out to delays, can you not read?
            Show some respect to veterans of Her Majesty's armed forces. He's still dealing with his PTSD from when shauny got the plum job of delivering morning coffee to the officers' mess.

            Comment

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