Compensation for the costs of Britain’s exit from the European Union

Brexit has affected not only the adaptability and resilience of carriers, but also their wallets. Favorable conditions are now entered into the sector’s Brexit Adjustment Reserve (BAR).

The BAR scheme provides financial compensation to carriers who have incurred additional costs of transportation to and from the UK. There is a total of half a billion euros in the BAR pot. It was not clear that this scheme had worked well for the sector, says Elmer de Bruin, director of international affairs at TLN. “Together with a number of entrepreneurs, we have had robust discussions with the Department of Economic Affairs and Climate Policy. This has, in part, contributed to the further improvement of the BAR scheme for the benefit of our members.” Together with Jeroen de Rijcke (Secretary of Marine Market) and Roger van Straaten (TelN Economist), he is thus satisfied with the fruits of TLN’s efforts.

Significant additional costs
The original strict standards did not cover all the costs carriers would have to incur to provide imports and exports to and from the UK according to Brexit and TLN reports. De Bruyne: “We first started with a group of entrepreneurs to take an inventory of the costs already incurred and their scope. Together with them, we provided EZK with the necessary inputs. This made the Ministry realize, for example, that carriers that do not provide customs declaration ourselves, we have had to put up with Significant ICT costs as a result of Brexit. These costs are now included in the chart. In addition, we were able to include several Brexit-related cost components in the chart. Unfortunately, costs cannot be included due to waiting times and rates. Low turnover. The provable percentage cannot be linked to Brexit and the European Commission is strict in its assessment, but contact costs and investments in training are again included.”

supply chain disruption
Especially at the start of Brexit, says De Bruyne, airlines had to deploy additional equipment due to the massive stagnation in cargo flows. “As a result of the supply chain disruption, containers sometimes stopped at the port for two to three days. While these goods had to be moved. What happens next? Then the carrier temporarily rents additional equipment to load the goods. We were able to get some of these costs into the scheme. The preparations and adjustments for the Brexit sector are tens of millions of euros.”

From January 1, 2018
“We are pleased that we were able to negotiate these cost items in the scheme, because they were not originally included,” says Jeroen de Rijcke. Entrepreneurs who use the scheme individually are now entitled to partial compensation for the costs incurred. BAR will be applied from 1 May. The scheme focuses on reimbursing additional costs from the past and costs that will continue to be incurred. For that first category of costs, another nasty surprise came out of the top hat. Originally, the European Commission wanted the extra costs to be reimbursed from 1 July 2020. De Rijke: “We thought it was unfair to leave members who prepared for an early Brexit empty-handed.” In the end, it was decided that the costs incurred from January 1, 2018 to May 1, 2022 can be counted under the subsidy scheme. The support bowl is limited to a certain maximum.

administratively simple
Future costs that may be eligible for reimbursement must have been incurred between 1 May 2022 and 1 June 2023. They can come, because they must be shown to have a 100 per cent relationship with Brexit. This would not be “rocket science”, because Barr is administratively as simple as possible. De Bruin: “Carriers soon won’t have to hand over auditor data. If they can show receipts, that’s actually enough for monetary compensation.” Reservations will also serve as a guide. It is very easy to extract these from conveyor systems. However, it is important that there is a direct relationship between the costs incurred and Brexit. And as always with some money: first come first serve. De Rijke: “That’s why we invite companies to take advantage of this arrangement. After all, every euro equals one. Even if you only get twenty thousand, that’s a nice bonus later.”

Source: TLN

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