The Association of Freight Software Suppliers (AFSS) has said that the post-Brexit freight software will not be ready by the time transition period of United Kingdom (U.K.) leaving European Union (E.U) ends on January 1, 2020.
This could lead to delay in getting products available at shop for final consumer and also increase the prices of the goods. Although the Government says that the project is on track, the AFSS has said that officials have failed to give details and direction for the project, which is causing the delay.
The software, when implemented, will help transport companies submit their paperwork digitally, which is necessary for relevant taxes to be calculated. Presently, the vehicles carrying goods move freely across the border. Post December 31, 2020, all the vehicles would be subject to strict checks and regulations for moving goods across the border.
This delay would add time and cost to the entire value chain. This additional cost has to be borne by someone. The logistics firms say they are not in position to adjust to this increasing price mechanism. Simply putting, the burden will then be passed on to the buyer.
It has also said that even if they are able to deliver a basic product, it would be unrealistic to expect firms to be fully trained on it by the year end.
The AFSS is made up of the companies that develop the software behind the freight and transportation industry. It has officially informed the Her Majesty’s Revenue and Customs (HMRC), the department involved, that it cannot get the software ready on time.
As per AFSS, HMRC has introduced a new system, called the Customs Declaration Service (CDS). Unlike the older system, it can handle two sets of tariffs for the U.K. and E.U. at once. That makes it potentially very useful for handling trade to and from Northern Ireland in particular. The key issue is that while the CDS system is ready, some of the software that traders need to submit their records to it is not ready.
The AFSS opines that there are certain features in the software that cannot be designed unless the post-Brexit trade deal terms are finalised. Once they are aware of it, they can design the features accordingly.
Speaking on the occasion, the Chairman of AFSS – Stephen Bartlett said, “When we ask how some of the systems are going to work, we’re told, ‘We can’t talk about it’. From where I sit, they’re trying to implement government policy… I know they’re working really hard.”
A statement from HMRC says, “Continuing to engage extensively with the software developer community and community system providers to ensure that they have everything they need to develop their products.”
HMRC has also assured that they have contingency plans in place to keep goods flowing.
Besides, the retailers body is all set to meet the Minister for the Cabinet Office – Michael Gove and Secretary of the State for Northern Ireland – Brandon Lewis where they will discuss their issues regarding the additional cost that could come up due to delay in implementing the software.
