Brexit is devastating ‘self-harm’ says Barton Marine, as carnet costs add to ire

“Brexit is the most devastating form of self-harm . . . and has had a negative financial effect on UK manufacturers, retailers and food providers since its inception,” says Suzanne Blaustone, Barton Marine’s CEO.

It’s no secret that Barton Marine remains fully against Brexit past and present, and supports a return to EU collaboration and free trade. And now the company is speaking out against the chaos of the carnet system, the costs involved of exhibiting in the EU and the continued detrimental effect that Brexit is having on marine businesses.

As UK readers will recall, back in 2015/16, the leave campaign waged a verbal battle on reducing EU regulations and red tape. It argued that the EU imposed excessive regulations on businesses, stifling innovation and growth and, by leaving the EU, the UK could cut unnecessary red tape, giving businesses more flexibility and encouraging investment, job creation, and economic growth.

The reality has been somewhat different.

Bloomberg research suggests that Brexit has cost the UK economy £100 billion a year in lost output. And, Research from the UK’s Office of Budget Responsibility says long-run productivity is down by 4 per cent, and exports and imports will be around 15 per cent lower than if the country had stayed in the EU.

A few weeks ago, Daniamant told MIN how Brexit was stifling innovation across the marine industry, partly due to the costs of safety regulations being out of sync, and the increased cost of having to work to multiple certifications.

Red tape became much worse, thanks to Brexit

Similarly, Barton is finding the UK’s red tape much more onerous than pre-Brexit.

As an example, Barton Marine has been exhibiting at European trade shows – such as Metstrade and boot Dusseldorf – for over 30 years.

Barton’s production director Dermot Bealey describes the process of taking a show to mainland Europe before Brexit as: “Put everything in the van and drive to Calais. The only paperwork we needed was our passports.”

But now? He sits dispirited, alongside Jeff Webber the company’s chief commercial officer, as both bemoan the pernickety processes involved in taking a stand to a trade show – and getting it back.

It sounds simple enough: UK companies now need to complete the carnet process in order to exhibit at an EU trade show. But the reality is anything but.

Dermot Bealey, Barton Marine production director

Onerous process for exhibiting in EU for UK marine companies

‘The ATA Carnet is an international customs document that permits duty-free and tax-free temporary import of goods for up to one year’, says the London Chamber of Commerce’s website, which hosts the process that Bealey and co have to follow.

“To be clear, it [the carnet] isn’t used for a whole year,” says Bealey. “You can only use each carnet once.”

The carnet contains pre-prepared unified customs declaration forms to be used at each customs border office and serves as a guarantee to customs duties and taxes. It essentially means exhibitors may travel through customs without paying import duties or taxes at each customs border office.

So far, so good.

Except . . . all the goods being displayed and all the goods being used to make the exhibition display (hand tools, exhibition parts, lightbulbs, stand, back drop etc etc etc ) – typically 400 plus items for Barton Marine – need to be itemised on the carnet.

Within that process, each item needs its weight, dimensions, country of origin, tariff code, quantity, value and more added to the portal.

Brexit produced intricate paperwork for exhibiting in EU

When this first came into effect, Barton spent ‘a couple of days’ working out how to fill in the forms. Now the company has a spreadsheet of the basic bits and it’s a much quicker process for them, but as Bealey says: “If you’re new to the process, it’s a massive hurdle to learn about, and overcome.”

When all the minutiae of data has bas been added, the carnet (which cannot be altered in any way once submitted) takes around two days to be issued.

“It’s an old traditional system,” says Bealey, “with a lump of paper at the end, posted back to you.” He waves a booklet around that contains all the details which were painstakingly submitted. “This cost £555 to produce,” he says, “plus the handling fee which takes it to about £600.”

(Compare that to putting everything in the van and grabbing passports.)

After the carnet arrives in the post, Barton then applies for two Goods Movement References – one there, one back – and permission to head for the border.

Barton Marine has 400 plus items which need detailing on the carnet

Inland border facility adds hours of delays when exhibiting in EU

“All the pre-booking paperwork needs to be done before you’re allowed to set off,” Bealey says. The journey overseas then moves to a car park in Sevington, Ashford. It’s called an ‘inland border facility’.

“There are hundreds of people working there in high-vis clothing. It’s a massive waste of tax payer and private money. There are hundreds of people standing around a one-way system, but not doing anything. There are no checks of the van.”

“It’s a soulless place, there’s no cafe,” adds Webber. While that may seem facetious, the lack of facilities is relevant . . . because of the time it takes waiting for the next stage.

Once the van or lorry is in place at Sevington, the goods movement documentation is checked, signed and dated (the date is – bewilderingly – written backwards). Then the waiting begins as the literal paperwork is given to the Border Force to check. That can take hours. And hours. But at least Bealey and Webber can use the time to consider how the process used to be . . . . load up and leave.

“You wait for a text calling you back to the office to collect the, now stamped up, carnet. You get a red piece of paper and you can leave the site and go to the tunnel crossing,” says Bealey. “Luckily Eurotunnel is flexible as you never know which train to book – you don’t know how long the wait will be for clearance. The only sign of physical checks is security at the tunnel entrance.”

When exhibitors arrive at the border in France it’s a quicker and simpler process, he says. It’s a ten minute drive from the tunnel to the border control. “You’re signed off to go in another 20 to 30 minutes.”

Coming back, the French have a kiosk in the Eurostar coffee area to get the paperwork signed off, but once you’re in the UK it’s back to the lorry park and waiting for a phone call . . . spending a couple of hours but still with no physical checks.

“The worst part is sitting and waiting for something to happen,” says Bealey.

Brexit stifles exhibiting at more EU shows

But that doesn’t mean that Barton Marine will stop attending European exhibitions.

“We’re not actually thinking about not exhibiting at shows,” says Bealey.

“But we’re not looking to add more shows. Every show requires another £600 on a carnet and all the wasted time. We would be doing more European shows if it wasn’t for this system.”

And while he concedes that it might be easier to use freight shifters, like Penguin, this would increase the cost and Barton would still need to produce the original documentation to be added to Penguin’s carnet. There is no getting away from the administration.

The team get ready at Metstrade 2024

Brexit paperwork makes simple shipping massively complicated

“Brexit has been very unsuccessful in its aim of cutting legislation and paperwork,” he says. And then adds that even the extra paperwork to simply ship a package to Europe is massively more complicated.

“Red tape around the world is going up,” agrees Webber. “Shipping delays, while paperwork is processed, is adding weeks to deliveries to Europe.” He cites the shipping charges, and handling charges for collecting VAT in destination countries as adding to the burdens and notes that – thankfully – Barton Marine is a B2B business.

“Because we’re B2B, we don’t need to worry about VAT in Europe. But what’s totally impossible is shipping to end customers. You have to be responsible for getting VAT paid, and be VAT registered in all those countries. As a B2C, Europe wouldn’t be viable for us.

“All the time, Brexit is adding costs and another level of paperwork for everybody.”

And that’s not all. Both Bealey and Webber are tediously aware of both GPRS (General Product Safety Regulation) and CBAM (Carbon Border Adjustment Mechanism) changes coming down the line at speed and what they’ll need to put into place. According to British Marine, it’s a mixed picture about UK marine companies readiness for CBAM in 2026, but companies need to ensure that their business actions in the UK still allow them to trade effectively in the EU.

Brexit devastating form of self-harm with negative financial effect

“It’s a disaster for the UK and the taxpayers,” says Blaustone (pictured), “and for us.”

“We have to stop other business actions and make time to comply with double the regulations. This means we’re behind other country’s productivity.”

The company has stood staunchly and vocally against Brexit since before the referendum in 2016.

“We were one of the few UK companies that provided EU customers and distributors in 2018 with a written Brexit plan on how Barton was preparing and responding to upcoming Brexit regulations affecting our EU shipments and product support,” she says.

Suzanne Blaustone says Brexit is form of self-harm.

“We continue to feel that Brexit is the most devastating form of self-harm that the UK can support given the loss of Free Trade and cooperative borders with the EU. It has not curbed illegal immigration – which has actually soared since the referendum vote, and has not assisted or ‘fixed’ the NHS which has declined in health service and efficiency, and has had a negative financial effect on the UK manufacturers, retailers and food providers since its inception.”

Blaustone believes that the UK Government has been crippled by the cost of legally re-writing all its laws – – many to remain virtually the same to align with the EU.

“Britain’s GNP has declined while banks and multinationals have moved their companies or resources out of the UK. We no longer are one of the largest allocation points for EU funding – so many of our prior EU funded projects for business and infrastructure upgrades have vanished.”

British Marine sets out its stance on Brexit

British Marine has come in for flack from some industry quarters for not taking a firm position on Brexit and the ramifications it has for member companies.

“British Marine is taking a non-position about how Brexit has affected the industry,” says Blaustone, echoing online criticism of the trade association posted after MIN reported Danaimart’s MED / MER safety regulation experiences. Although Blaustone grants that British Marine is now offering a much higher calibre of advice, she would love to see the association take a firm stance and give up what she sees as its ‘diplomatic’ approach of not having an actual opinion.

“Brexit is an extremely broad issue that impacts marine businesses in many different ways,” says Lesley Robinson (pictured), CEO of the association.

“British Marine continues to support its members by providing guidance on regulatory compliance and market access, as well as engaging with policymakers to address industry concerns. We encourage any business facing Brexit-related challenges to reach out to us directly so we can provide tailored support and advice.”

British Marine says it deals with a broad range of issues on behalf of its members, including Brexit and its ongoing impact on the marine industry. It recognises that Brexit affects different businesses in different ways, from regulatory compliance to market access, and says it continues to work closely with members to provide tailored support and guidance.

The organisation says it also remains engaged with policymakers and industry stakeholders, advocating for practical solutions to the regulatory and trading challenges that impact the marine sector and that this ongoing work ensures that the concerns of its members are represented at the highest levels.

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