They are talking about all the extra customs work for UK to EU trade. In all honesty it is not that much extra work for the shipper....the invoice we raise is different in that it has the commodity codes alongside every line of the invoice...most businesses that ship already to the world outside of the EU have this facility and codes are already loaded into Sage.
The big problem is the receiver,the EU customs will have to calculate the tariff rates and vat for every invoice,dont forget that EU countries have not harmonised their vat rates.
It will be a massive task for the EU customs calculating and collecting the duty prior to releasing the goods...bigger companies will have a deferred duty system in that the duty plus vat is collated and taken from the customers account on a monthly basis,this is the same as already collected on goods coming into the UK from China.
I can see EU customers being put off by having to pay this duty and vat in advance and looking to source locally,it will undoubtably reduce UK to EU trade.
Similarly EU to UK trade will be reciprocally affected,some smaller UK customers will find it hard to cash flow the duty/vat which can be anything from 23% to 60%.
Meat and dairy goods will be most affected with duty rates as high as 35%,I can see traders who buy from say Ireland into the north and visa versa going out of business.
KudosDave