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BREXIT Update November 1st 2018

Since the United Kingdom formally advised the EU of it's intention to leave in March 2017, we have been using the 2 year notice period to negotiate and agree the future relationship between the two parties. Once agreed, a transitional period to implement agreed changes is planned to run to the end of 2020 during which the Customs Union will be maintained.

As of the date of this communication, negotiations are not yet finalised which raises the possibility of a "no deal" situation where all regulatory relationships between the United Kingdom and European Union will lapse. In such a scenario some regulatory areas will revert to Global agreements such as World Trade Organisation (WTO) framework for cross-border trade arrangements.

OCS Worldwide is an International distributor of more than 50 years experience. A "no deal" EU exit remains unlikely following Teresa May's statement on October 22nd that a deal is 95% complete. However, this update is to let you know what we are doing to support your business and prepare for all eventualities.

OCS Worldwide - Resources & Engagement

As part of the OCS Global Network, OCS Worldwide has significant established infrastructure to handle cross-border trade. Credentials include:
  • Authorised Economic Operator (AEO)
  • HMRC Customs Broker / Agency
  • ETSF Bonded Warehouse Facility
  • Community Transit Permissions & Guarantee
  • HMRC MoU holder for NES Export declarations
  • Meets "Trusted Trader" criteria for export control.
OCS Worldwide is also an active member of the Association of Courier & Express Services (AICES) which is the recognised trade body for International Fast Parcel Operators. AICES is directly engaged in negotiations with HMRC as well as lobbying both UK and EU governments concerning the requirements for smooth cross-border processes to enable/facilitate trade.

What is OCS doing to prepare for BREXIT?

BREXIT is a fixed agenda item for all OCS Worldwide UK divisions. Some of the actions taken or underway are:
  • Engaging with our staff to ensure they are aware of decisions / potential changes affecting the status of EU nationals. This ranges from circulating government updates, to giving advice on exchanging EU driving licenses for UK documents if appropriate.
  • Completion of an IT systems review to expand functionality to handle data for EU parcels in a similar way to those destined for outside the EU currently.
  • Reviewing HMRC interfaces and software so increases in entry volumes can be absorbed smoothly and without delay. Upgrade work is being completed for automated high volume transmissions.
  • Expansion of the OCS Worldwide regulatory compliance team. The function of this team is the development, operation and audit of procedures regulated by external agencies such as HMRC.
  • Engaging with OCS Worldwide partners across the EU for information and feedback on changes to the handling of UK goods on arrival at their border. This includes potential tax collection mechanisms including delivery on DDP incoterms.
  • OCS UK and OCS Netherlands are co-operating with the expansion of facilities in Amsterdam to support parcels arriving from outside the EU.
  • Engaging with EU Postal Administrations to plan any necessary changes to postal labelling such as the addition of CN22 or CN23 declarations.
  • Supporting our industry body, AICES, together with our industry peers to ensure the most advantageous outcomes for EU parcel distribution.
As Friday March 29th 2019 approaches ...

OCS Worldwide continues to work with all stakeholders in order to facilitate smooth parcel delivery across the EU.

Representation in all EU states, together with existing parallel air & road networks provides a strong foundation on which to overlay the necessary procedures dictated by soft BREXIT, hard BREXIT or "no deal".

Please contact your account manager with questions. Regular updates will follow in the coming weeks.

Tim Jones
Managing Director