Responding to the publication of the Government’s draft Border Target Operating Model, Tina McKenzie, Policy Chair of the Federation of Small Businesses (FSB) said:
“Small firms that import from the EU and worldwide to the UK have been overwhelmed by complex customs paperwork and lack clear guidance on navigating border controls. It’s therefore welcoming to see the Government put forward a plan to bring down trade barriers that have been keeping foreign markets out of reach for small businesses.
“Our latest Customs Clearance report shows nearly one in ten small firms surveyed say they used to export or import but have stopped doing so in the past five years. The volume of customs paperwork (56%), overall costs (49%) and supply chain or logistical issues (29%) are cited as key drivers.
“Current small international traders also have a bumpy ride to overseas markets. Six in ten (61%) identify high shipping costs the top challenge, followed by losses and delays in transit (56%) and the lack of clear guidance on customs procedures (45%).
“Improving current trade infrastructure is not only crucial to small international traders but also consumers who are impacted by these trade challenges. Committing to raising the de minimis customs duty threshold to £1,000 would be a logical next step.
“In general, policymakers should adopt a ‘think small first’ approach to customs policy development and place small businesses at the heart of new trade and customs structures to avoid disproportionate cost or administrative burdens. This should include commitments to robust piloting and staggered implementation timelines.
“We look forward to engaging with the Government in the consultation and continuing working together to create a seamless road to trade for UK small firms.”
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About FSB
As the UK’s largest business support group, FSB is the voice of the UK’s small businesses and the self-employed. Established over 40 years ago to help its members succeed in business, FSB is a non-profit making and non-party political organisation that’s led by its members, for its members. As the UK’s leading business campaigner, FSB is focused on delivering change which supports smaller businesses to grow and succeed.
FSB offers members a wide range of vital business services, including access to finance, business banking, legal advice and support along with a powerful voice in Government. Each year FSB also runs the UK’s Celebrating Small Business Awards. More information is available at www.fsb.org.uk. You can follow us on twitter @fsb_policy and on Instagram @fsb_uk.