Fresh bid to avoid no-deal Brexit disruption as firms get auto-enrolled in key customs system

Posted On: 
21st August 2019

The Government will start automatically enrolling companies in a key customs system as it ramps up preparations for a no-deal Brexit

Business groups gave the plan to avoid tailbacks a muted reception.

More than 88,000 companies will be allocated an Economic Operator Register and Identification (EORI) number in the next two weeks, The Treasury said, adding to the 72,000 firms who have already registered.

EORI numbers are used by non-EU member states to allow them to import or export goods into or out of the bloc, and Chancellor Sajid Javid said the UK was "accelerating its preparations" to leave the EU on 31 October.

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The Cabinet minister added: "There can be no time for delay which is why HMRC has allocated thousands of businesses with a trading number to ensure they can continue to trade their goods through Europe from day one.

"This will help ease the flow of goods at border points and support businesses to trade and grow."

But the announcement was given a muted reception by business groups.

Mike Cherry, chairman of the Federation of Small Businesses (FSB) said: "If the nightmare of a chaotic no-deal Brexit on 31 October becomes a reality, our small traders will the first ones off the cliff. 

"Overnight, small business exporters will have to contend with growth sapping tariffs and time consuming customs declarations.

“These businesses are the ones that need to prepare the most, so it is welcome to see the Government has listened to us and is taking concrete action."

The CBI - which represents larger firms - meanwhile said the announcement was "a sensible move" but "one of hundreds of things that needed to be done" to prepare Britain to leave the EU without a deal.

Anti-Brexit campaigners also took aim at the proposal, with Liberal Democrat Treasury spokesperson Chuka Umunna pointing to the wider predicted impact of a no-deal Brexit outlined in a leaked government dossier.

"Exporters might have the correct registrations but Operation Yellowhammer documents tell us they will in all probability be sitting in lengthy lorry queues at border crossing points," he warned.

The announcement comes after the Department for ministers announced that UK officials will stop attending "most EU meetings" from 1 September, in a move the Department for Exiting the European Union said would allow them to "focus on our future relationship with the EU and other partners around the world".