Recommendation 5

There is more to be done to ensure that traders and hauliers across the 27 EU countries are prepared for UK import controls. Departments have consistently rated a lack of trader and haulier readiness for new border controls as a high risk to the operation of the UK border after the end of the transition period. UK traders have been dealing with EU import controls since January 2021 and the Cabinet Office was very positive about the extent to which UK hauliers, logistics companies and EU Exit: UK Border post transition 7 traders had adapted to them. The focus now is on EU trader and haulier readiness for UK import controls when they are imposed throughout 2022. HMRC told us that 85% of the value of UK imports from the EU are made by large traders who also trade with the rest of the world and it was therefore focusing on ensuring the remaining 15%—around 90,000 traders—that are less familiar with international customs procedures are aware of what they need to do. HMRC has a high level of confidence that traders will be ready for 1 January 2022, but said EU hauliers were at a lower level of readiness. Improving readiness in 27 countries is significantly more challenging than improving it in one, and we share others’ nervousness about the state of EU trader readiness for the controls to be introduced throughout 2022 and the lack of visibility and metrics on this. Recommendation: In its Treasury Minute response, Government should set out departments’ assessment of EU trader and haulier readiness, to determine whether any intervention by either itself or the EU may be required; and set out any plans for additional support.