Kevin Rough’s insights shed light on the challenges facing marine manufacturers in the wake of Brexit. The added bureaucracy, increased costs, and out-of-sync regulations are making it difficult for companies like Daniamant to navigate the post-Brexit landscape.
As the UK and EU regulations continue to diverge, companies are forced to keep up with multiple sets of rules, update their certifications, and bear the financial burden of compliance. The need for dual certifications, the appointment of Notified Bodies in both the UK and the EU, and the constant changes in regulations are all contributing to a challenging environment for marine manufacturers.
Despite these obstacles, Rough remains committed to innovation and ensuring that Daniamant’s products meet the highest safety standards. However, he warns that the current regulatory environment could stifle innovation and hinder the industry’s growth.
As the marine industry grapples with the implications of Brexit, it is clear that more needs to be done to streamline regulations, reduce certification costs, and support manufacturers in adapting to the new post-Brexit reality. Only through collaboration and cooperation between regulatory bodies and industry stakeholders can the marine sector thrive in the face of these challenges.
There is a competitive disadvantage to following all the legislation — due to costs involved to be compliant. But that doesn’t stop Daniamant spending the time and money to do the right thing.
“You have to be compliant and hope your customers are also compliant,” Rough says, but he notes that not all are, especially from lower-cost countries.
Part of the problem is lack of information and advice.
“You have to find out things yourself – there’s no industry feedback into what works.” With this in mind, Rough advocates joining trade associations where upcoming legislation is communicated to members. He lists personal associations such as IOD, IEMA, IOSH, IoE, CMI, etc and trade associations such as ILAMA, CIRM, and RTCM.
Costs associated with Brexit for marine manufacturers like Daniamant – and its customers
“Brexit also had an influence in the acquisition of Jotron’s marker lights,” Rough details. “We decided to put the manufacture and supply of these new products into Denmark, and not the UK.
“The majority of the customers for these products are based in the EU and if we had moved manufacture to the UK, those EU customers would now be treating the sale as an import. That would come with associated increased costs and paperwork to import from the UK. By moving it to Denmark our customers can still enjoy the free movement of goods.
“The promise of customs’-free, and friction-free, trade between UK and EU has not happened,” says Rough. He says some of Daniamant UK’s smaller customers – importing perhaps £100 an order – are now finding some of the costs doubling. That means they’ve switched alliances to competitors in Europe to avoid costs (such as custom duties).
Although many of Daniamant’s products do not attract duty, there are also increases costs due to new tariffs. “The main increase in customs’ costs comes from the ‘rule of origin’ tariff. That applies to the import of goods from the EU which were originally made, or contain components made, outside of the EU. The increased cost of customs duties places further burden on UK businesses.
“Importing goods from the EU has also become far more complicated and time-consuming for UK businesses due to the bureaucracy involved. Daniamant has Authorised Economic Operator status, this is a decision we took to help make border processes more efficient as a pre-approved business recognised as low risk (another cost however),” Rough explains.
(Authorised Economic Operator status is an internationally recognised standard. It shows a business’s role in the international supply chain is secure and has customs control procedures that meet set criteria.)
“I can see how Brexit has not impacted many organisations on a micro basis, but on a macro basis – those who previously and currently deal with international trade and regulations have, in my opinion, seen no benefit,” he concludes.
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