Uncertainty can be costly as the Union Customs Code, UCC, is implemented
The new Union Customs Code, UCC, is already influencing several companies, but not all are taking actions accordingly. A recent study by KGH Customs Services shows that uncertainty about what to do is a main reason why companies are not yet taking measures – something that can increase both costs and risks as the new legislation is implemented.
Several reasons prevent companies from acting
The survey, The Union Customs Code Impact on Businesses, shows that there are several reasons why companies have not taken measures. Besides the companies that have not yet perceived an impact, lack of knowledge is the main reason for waiting. Moreover, some people with UCC responsibility are awaiting clearer guidelines from their management.
Why have you not taken action yet?
45% Not been affected yet
41% Unsure what step we should take
21% Awaiting decision from management
7% Awaiting further information
Even though not everything is known yet, and some areas of UCC are being implemented during a transition period, it is important that companies invest time and resources in understanding how the UCC will influence their business. Waiting to take action can be both costly and increase risk. Missing a certain deadline can lead to severe interruptions in your operations and difficulties in taking advantage of potential facilitations. Reacting late rather than acting early will almost always lead to increased risk exposure and costs for managing the change. The strain on the organisation increases, as will the risk of mistakes. Additionally, the better you understand what the UCC means to you, the better you can take advantage of the new legislation.
The major changes are still to come. It is important that companies use this time to understand the main changes and what they can lead to, clarify what to do now, and what to do to secure a solid base for future implementation. This will most definitely benefit your business and how you allocate your resources optimally. If internal resources are not enough, seeking external support for an initial review is a good step. Sound understanding of the current situation and potential gaps will also help secure buy-in from management.
If you are interested in learning more about how the UCC is influencing businesses, you can download the full report.
Please do not hesitate to contact us at firstname.lastname@example.org if you would like to discuss this further.
Catharina Olofsson, Consulting Director