4 minute read
International: Exploring the state of the global economy
International Trade
T: 0121 725 8994 E: ibh@birmingham-chamber.com
Demand for carnets goes through the roof
Demand for temporary export documentation, known as carnets, has skyrocketed according to new figures released by the Chamber’s documentation team.
According to the team, 230 carnets were processed in May 2021, compared to just eight in May 2020.
Also, the Chamber processed 25 per cent more carnet documents in May compared to April.
Carnets processed by the Chamber have surged due to increased demand for the documentation by the automotive sector and Brexit.
Jonathan Crosbie, international documentation manager, said: “We’ve witnessed high demand for carnets, temporary export documents, predominantly from automotive clients.
“Ninety-five per cent of carnets applied for are going to Europe, because of the impact of Brexit.
“Customers generally understand that they require carnets to temporarily export to European markets, however they are frustrated that the UK Government and the EU has not hammered out a temporary customs agreement in order to ease the process.
“Carnets are typically used by businesses that exhibit at overseas shows, those that need to ship goods to take part in events or leisure activities and musical sectors.
“Many of these industries are of course, being severely impacted by Covid restrictions. We undoubtedly will see a major upturn in demand for carnets, once these sectors can operate again.”
Exploring the state of the global economy
The Chamber’s latest Global Trade Conference heard a number of high-profile speakers give their expert analysis of how the world economy is performing.
The digital conference also heard about massive changes to tax regulations in the European Union, which come into force this month.
The main focus of this year’s event was an analysis of the global economy following the events of the last 12 months, with discussions around international connections, valuable trade insights, success stories from companies who have benefitted from an international footprint and how to grow sales and client bases.
Among the high-profile speakers were several with connections to Qatar, the host country for next year’s football World Cup.
These speakers include British Ambassador to Qatar, Jon Wilks, who took part in a question and answer session on innovation.
Mr Wilks took up his posting to Doha in March 2020. He was joined by Gary Kershaw, Qatar Airways’ country manager for the UK and Ireland, who participated in a session about international travel and its recovery from the pandemic.
Those taking part also heard a presentation from the Chamber about the change in taxation rules in Europe, intended to streamline how goods and services bought online are dealt with.
The new rules will see Value Added Tax (VAT) charged in the country where the consumer is located, rather than the country of origin. As part of this, those selling goods and services into the EU are being given the opportunity to sign up for OSS (One Stop Shop), which is a system where they can submit just one VAT return, rather than registering in each member state.
The Chamber is urging businesses to ensure they know about OSS and are registered for it, if necessary.
Chamber international manager Stef Bowes said: “We are extremely proud to have once again delivered a fantastic digital conference.
“Over the last year we have stepped up our engagement with so many of our overseas partners as we know there has never been a more important time for businesses to look at new markets and consider their relationships with key international trading partners.”
Nordic trade deal welcomed by Chamber
The Government has struck a trade deal in principle with the Nordic countries of Norway and Iceland, and the Alpine principality of Liechtenstein.
The Government said that the deal would slash tariffs on high-quality British food and farm products.
The agreement will cut tariffs as high as 277 per cent for exporters to Norway of West Country Farmhouse Cheddar, Orkney Scottish Island Cheddar, traditional Welsh Caerphilly, and Yorkshire Wensleydale cheese.
There will also be tariff reductions and quotas on pork, poultry and other goods. UK wines and spirits, including Scotch whisky, will also now be recognised in Norway and Iceland.
Reduced import tariffs on shrimps, prawns and haddock will cut costs for UK fish processing.
The deal is also the first time these three countries have included dedicated chapters on digital trade, and will mean that when British firms export to them, electronic documents, contracts and signatures will be used, to allow goods to move seamlessly across borders.
The agreement means British businesses will be able to bid for government contracts in partner countries, worth an estimated £200m a year.
The deal will allow caps on the charges mobile operators are allowed to charge each other for international mobile roaming. It will also enable high-skilled professionals to enter Norway, Iceland and Liechtenstein for business purposes, using faster and simpler visa processes.
The deal has been welcomed by the Chamber, and international director Mandy Haque said: “I am pleased to see that UK Government has negotiated a trade deal with Norway, Iceland and Liechtenstein and this will be good news for sectors where there is a focus in those countries, however there are still many key overseas markets where a deal needs to be struck.
“There are a variety of consultations in progress at the moment with opportunities for businesses to help shape future trade deals and Government are asking businesses for their input. Details for these can be found on gov.uk.”
Mandy Haque
