British businesses need to learn and invest in trade and customs skills to propel the UK’s economic growth, experts in the industry have said.
Growth is one of the five core missions the new government has set itself for the next five years, with business and trade secretary Jonathan Reynolds recently writing in the Guardian that a new industrial strategy will soon be published and it will be “aligned” with its approach to trade.
Trade skills needed
Lyn Dewsbury, a customs and trade specialist at the Chartered Institute of Export & International Trade, has said that skills will need to be central to both the industrial and trade strategies.
Dewsbury, who will be speaking on a free Chartered Institute webinar next week about what skills businesses need to succeed in trade, said she had picked up a wealth of expertise throughout her career – from legal to accountancy skills.
“Companies that trade internationally can boost their sales and revenues by reaching overseas customers, while also de-risking their business from downturns in the domestic market,” she said.
“Succeeding in international trade requires specific skills and knowledge, though.
“For example, if you want to benefit from lower duties through preferential tariffs in the UK’s post-Brexit trade agreements, you will need to understand how to identify the correct commodity code for your goods and know how to navigate the origin rules in the trade deal you’re using.
“The government should be looking at how it can equip businesses with these skills so that they can succeed internationally and propel the country’s economic growth.”
The webinar, which is taking place at 2pm on Wednesday 11 September, will be identifying seven skills that the Chartered Institute has identified as being necessary for trade success.
Managing risk
Dewsbury also said that deciding not to invest in trade and customs skills posed a significant risk to businesses.
“In international trade, if you get something wrong, your goods could end up getting stuck at a border, and you could receive a fine or even have your ability to trade internationally revoked by HRMC."
She added that the same is true for businesses importing goods or manufacturing materials into the UK because of the complexity of post-Brexit rules.
Indeed, Elizabeth Davies, a customs system manager at TariffTel, recently told us that around two in every five commodity codes declared in customs declarations are incorrect.
“You’ve got the compliance issue initially and then there’s duties because you could be over- or under-paying,” she said.
“This could either affect your profit margins or, at a more serious level, your goods could get stuck at the border and leave you with unexpected storage costs, as well as the need for extra time and resource to correct inaccurate documentation.”
Reputation
While new customs requirements have been at the fore of many firms’ minds following Brexit, there are other business areas where customs and trade skills will be key.
Andy Bridges, a trade and customs expert at the Chartered Institute, gives the example of new climate-related requirements for businesses. He says that businesses that show they comply with new environmental rules to a high standard could see their reputations soar.
“In addition to complying with new regulations like the EU’s carbon border adjustment mechanism, understanding your supply chain can help you identify ethical or environmental issues, allowing you to make informed decisions about sourcing.
“This awareness can enhance your brand's reputation, support sustainability efforts, and ensure you remain competitive in a market that increasingly values transparency and responsibility.”
Seven skills for trade success
Next week’s webinar will also feature the launch of a new report from the Chartered Institute going into further depth on the seven skills needed for trade success.
You can sign up to the free webinar here to find out what these seven skills are.
If you have any thoughts or comments about what skills are needed for businesses and trade professionals to succeed in international markets, contact us at editor@export.org.uk.