Any company wanting to trade across borders will also need to ensure internal systems communicate with both the EU’s customs technology and a new UK system. HM Revenue & Customs estimates the number of customs declarations will rise from 55m to 255m annually. Mr Persson says: “It will be a huge challenge for it to be ready by 2019.”
Joe Owen of the Institute for Government think-tank said an estimated 130,000 traders would be dealing with customs for the first time after Brexit.
About 63 per cent of EU companies are already seeking to ditch UK suppliers and 40 per cent of UK companies are seeking domestic suppliers, according to the Chartered Institute of Procurement and Supply.
Brexit poses a cash flow problem for trading companies because VAT will be charged at the border when importing goods and services.
Cash flow problems will be compounded for companies that need to hold additional inventory as insurance against potential delays at borders.
There is no guarantee that border procedures will operate smoothly immediately after Brexit, and companies will need a contingency plan in case systems fail. When Australia introduced a new customs procedure in 2005, it seized up within two days, leaving the nation short of medical supplies and toys for Christmas.
some will want to invest in greater warehousing, which is already reaching capacity.
Intellectual property protection, including patents, trademarks, registered designs and copyright could all change after Brexit.