Whether you voted for Brexit or not, it really doesn’t matter; it is here now, it is happening and we must work together to ensure the future success of our profession, so that we can continue to propel national economic growth.
If there is one clarion call which I consistently recommend to Government, it is the imperative importance of frictionless borders. It is vital that we achieve this to get British products and services efficiently to market, both within Europe and further afield. However, our Government cannot do this alone – we all have our parts to play.
Following the vote for Brexit, our profession has been in a period of continued uncertainty, but we must all be aware of the many opportunities that can arise from Brexit and be ready and able to seize them and add value.
At CILT, we are championing Authorised Economic Operator (AEO) certification to aid members to gain a competitive advantage, recognition for professional competence and trouble free border crossings. Clearly, security at all border crossings is of vital importance, but how this is managed is also critical to commerce.
A 21st-century solution is required if goods and vehicles are going to flow smoothly. AEO is the crucial ticket to negotiating Brexit, and indicates that your role in the international supply chain is secure and that your customs controls and procedures are efficient and compliant.
Discussions of a no-deal exit and recognition that seamless borders are unlikely to be attainable means that the UK must gear up to deal with the EU as it does with the rest of the world, which recognises AEO as the standard.
Throughout the industry there has been a rise in the question ‘Do you hold AEO status?’ being on the list for preferred supplier listing and tenders and I am encouraging members of our Institute, Government and the profession to wake up to the advantage of being an Authorised Economic Operator.
The reasons for low participation vary, including industry complacency, pressure on resources and cumbersome processing of applications. There is a looming risk that non-AEO forwarders will be left behinds as the authorities, partners and customers worldwide choose to deal only with authorised companies. Post-Brexit, an army of AEO accredited operators will be crucial to achieving the smooth transition of borders to our markets.
The widespread adoption of a globally recognised standard like AEO is essential not only to protect the UK’s position once we leave the EU, but also potentially to enhance the UK’s status as the country for international trade. The UK is well placed to be number one in logistics.
AEO status should give companies that have demonstrated their commitment to security in the supply chain access to what would in effect be a green lane through UK ports and airports. This is a complex, formal accreditation to achieve with a very low pass rate so far. Very few UK companies have it; very many will need it, and I encourage all organisations to get on with it now.
Holding this status is going to be key to experiencing the frictionless border or green channel that industry wants and needs, in whatever shape that is available post-Brexit. AEO offers an opportunity to demonstrate that the forwarding sector can lead the process in supporting the UK’s position in global trade. If the UK forwarders do not rise to the challenge, the UK sector will lost its competitive advantage and undermine its value to customers.
Now really is the time to get started. Those that have not yet chosen to be certified should be giving it serious consideration, and Government should think carefully about making this the must-have status for forwarders to allow the UK’s economy to thrive in a post-Brexit world.