PUBLIC PUBLIC SUPPORTING OUR CUSTOMERS THROUGH BREXIT DHL Business Unit – Business Unit Descriptor, Arial (bold), 12 pt
PUBLIC PUBLIC AGENDA Current Situation Political Engagement How DHL Express is Preparing Preparing Your Business
PUBLIC PUBLIC CURRENT SITUATION
PUBLIC DHL Express is preparing Dedicated taskforces in the UK and Europe have been assessing every aspect of Brexit since the EU referendum in 2016, considering all implications and known risks. As international specialists, we’re already in a strong position with existing customs teams, network capabilities and experience of international trade. Across the business we are making significant and continued investment with the aim of maintaining service post-Brexit, in what will potentially be challenging circumstances. We are planning based on available information. If requirements change, we will adapt, but some elements will be beyond our control and will have an impact across our sector. We will all need to work together to overcome the challenge of Brexit, and we will continue to inform you of any developments. In the meantime, please be assured that our determination to maintain an excellent service for all our customers remains unchanged. The following presentation refers to preparations for a ‘No Deal’ scenario, where the UK leaves the EU without a Withdrawal Agreement, and falls back to World Trade Organisation (WTO) tariffs and terms with no legal framework for non-WTO matters. Supporting our customers through Brexit | October 2019 4
PUBLIC Current timeline 1 JAN ’21 End of ‘transition period’ – Final UK-EU trade 19 OCT ‘19 arrangements commence / No deal Brexit? – If future Deadline for deal negotiations failed Brexit deal TODAY 17-18 OCT ‘19 1 NOV ‘19 EU summit to be UK no longer a held – UK PM to member of the EU? seek a new withdrawal deal TBC As of September 2019 UK General Election Fix date/event Uncertain event/date Supporting our customers through Brexit | October 2019 5
PUBLIC FTA and trade associations – serious concerns… “The FTA has consistently warned that it will be extremely challenging for logistics companies to operate post Brexit in a no deal situation . With no clarity on the adequacy of customs and border arrangements, probable delays at the border and extensive investments being required – it will be very difficult for businesses to prepare for every situation .“ Head of Global & European Policy Freight Transport Association FTA's response to leaked ‘Yellowhammer’ Brexit report “ Businesses can only prepare for and implement new processes once and still need confirmation of what they are to adopt in the way of new practices, while still maintaining existing trading relationships and keeping costs down. The logistics industry is at the heart of the UK’s economy, impacting every individual and business. The report shows that there is still significant detail to be clarified if Britain is to keep trading efficiently after Brexit. Leaving the logistics industry still waiting for detail on trading arrangements after Brexit is to hinder the very businesses that will be relied upon to keep Britain trading through a costly and difficult No Deal Brexit. Efficient logistics is vital to keep Britain trading, directly having an impact on more than seven million people employed in the making, selling and moving of goods. With Brexit, new technology and other disruptive forces driving change in the way goods move across borders and through the supply chain, logistics has never been more important to UK plc.” (Published Thursday 12 September 2019) SOURCE : https://fta.co.uk/media/press-releases/2019/september/fta-response-to-yellowhammer-document-release Supporting our customers through Brexit | October 2019 6
PUBLIC PUBLIC POLITICAL ENGAGEMENT
PUBLIC DHL is active with political engagement DHL is working closely with EU and UK legislators, and has been since the referendum in June 2016, to help them understand the complexity and implications of the exit terms on businesses, highlighting issues and calling for terms that are in the interest of our organisation and our customers. CUSTOMS ROAD HAULAGE PORTS AVIATION IMMIGRATION INFRASTRUCTURE Simplified declarations Maintenance of current European Aviation Safety Simple visa & automatic release for road market access No border inspection / Agency (EASA) requirements for Authorised Economic with no rationing of Reduction in checks membership / key workers Operators (AEOs) / Inland international freight for agri-food on both Maintenance of pre-clearance / Use of permits / Mutual recognition sides of the border existing rules for periodic payments / of driving licences and airlines and existing Maintenance of special driver qualifications EU and US market customs procedures & vehicle standards access rights / Security post-Brexit / Light touch international agreement for cargo trailer registration Progress is being made across all topics listed above, however the outcomes remain subject to final notification. Supporting our customers through Brexit | October 2019 8
PUBLIC PUBLIC WHAT WE ARE DOING AND HOW WE CAN HELP
PUBLIC As international specialists, we’re already in a strong position We already have a number of key differentiators and all the expertise needed to support you through Brexit: 300+ 5+ million 7+ AEO dedicated customs customs transactions bonded or customs warehouses in the DHL is an Authorised professionals each year UK / plus at least one per EU country Economic Operator WHAT IS AEO? Authorised Economic Operator (AEO) status is an international quality mark for companies whose customs processes are secure and efficient AEO enables us to leverage Customs Freight Simplified Procedure (CFSP), which speeds goods release from Customs and allows deferred payments Figures quoted are for DHL Express in the UK Supporting our customers through Brexit | October 2019 10
PUBLIC What is DHL doing to prepare for Brexit? Our expert taskforces in the UK and Europe have been assessing every aspect of Brexit since the 2016 referendum, considering all implications for international trade. DHL Express – Workstreams Network Operations ⎼ Network, hubs and ground operations planning, border issues management Airline ⎼ Contingency planning for air network UK Steering Group and Customs ⎼ Manage & plan customs operations, including recruitment/training/assessment of new customs requirements workstreams HR ⎼ Supporting impacted workers, recruiting additional workers IT ⎼ IT systems analysis, cross-border risk analysis, IT systems testing, data management Global Steering Group Finance ⎼ Data analysis, VAT and Duty, Calculations/collection Security ⎼ Security awareness and contingency planning Commercial ⎼ Customer transition, Customer Operations Group, Customer Service considerations Supporting our customers through Brexit | October 2019 11
PUBLIC DHL Express Contingency Planning Increasing our Minimise disruption Delivering service Enhance our 1 2 3 4 resources to manage to customer supply quality for our systems and Brexit requirements chains customers infrastructure a) A dedicated ‘Brexit Control Tower’ a) Changes to systems and tools a) Expanded Customs Agent capability a) Increase in network capabilities to provide additional capacity will proactively monitor our network to enable shipping if customs on/off shore and action contingency plans regulations apply to EU where possible b) Mitigate transportation permit issues b) Bond capacity increased to ensure driver access b) If you will need additional time b) We are making significant and continued investment with the for the UK and EU definite services by air, please speak with you account aim of providing as seamless c) Additional people and resources a service as possible, manager now to enable increased duty in what will potentially be and VAT collection challenging circumstances requirements Supporting our customers through Brexit | October 2019 12
PUBLIC PUBLIC WHAT ABOUT YOUR BUSINESS?
PUBLIC Preparing for Customs in the EU It is likely that customs procedures will apply when trading with the EU after Brexit. Already trading outside the EU? If you’re currently trading outside the EU, you’ll be familiar with customs requirements. The information in this section could still be useful in helping you prepare, please review the content on Paperless Trade, EORI numbers, Returns, and Delivery Duty Paid in particular. Only trading with the EU? If you’re currently only shipping within the EU, now is the time to familiarise yourself with customs procedures. The following checklist is designed to highlight areas where you can make customs clearance a smoother process post-Brexit. There are lots of help materials available in addition to this guide. We suggest reaching out to your local Chambers of Commerce for advice on any specific paperwork required for your products – they can produce Certificates of Origin (COO) or ATA Carnets, for example. DHL Express will submit customs paperwork directly to Customs on your behalf as we send your shipments. Providing the relevant documents via our Paperless Trade option will help ensure swift customs processing. Supporting our customers through Brexit | October 2019 14
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