Kent businesses reporting Brexit red tape are describing a practical problem as much as a political one: moving goods between the UK and the EU now involves more paperwork, more formal trade processes and, for some firms, higher costs than before Brexit.
BBC South East has reported that companies across the South East of England have faced increased costs, red tape and difficulties trading with the EU since the referendum and the UK’s subsequent exit from the bloc. In one example cited by the BBC, David Dodd of Pots and Pithoi said that shipping costs had risen from £100- £150 to £1,200 per pallet, contributing to lost sales. The same report also described wider concerns about skilled recruitment under new immigration rules, with Moni Varma of Veetee pointing to difficulties hiring skilled staff.
For Kent, the issue is especially local. The county sits beside Dover and the main cross-Channel routes linking the UK with continental Europe. That means rules around export paperwork, import processes, customs declarations and border checks are not abstract: they affect hauliers, importers, exporters, wholesalers and small firms operating close to one of the country’s most important gateways.
What has changed for Kent businesses trading with the EU?
Before Brexit, goods moved between the UK and the EU single market under a different trading framework. Since the UK left the EU, firms moving goods across the border have had to deal with customs and regulatory processes that were not part of the same routine for many businesses before.
Government import and export guidance sets out that businesses moving goods between Great Britain and other countries need to consider customs declarations, commodity codes, duties, VAT, licences or certificates where relevant, and records for goods being imported or exported. For firms that previously sold to or bought from EU customers with fewer formalities, this can entail additional administrative work.
For Kent businesses, the most visible changes fall into three broad areas:
- Paperwork: firms may need customs declarations, commodity codes, invoices with specific information, and evidence to support the origin and classification of goods.
- Border processes: goods may be subject to checks, controls, or procedural delays depending on the product, route, and documentation.
- Costs: businesses may incur customs agent fees, additional logistics charges, compliance costs, staff time spent on administration, and higher costs when shipments are delayed or returned.
The UK-EU trade deal allows for tariff-free trade in qualifying goods, but businesses still need to meet rules of origin and customs requirements. That distinction matters: tariff-free trade does not mean paperwork-free trade.
Why Kent’s location makes Brexit red tape a local business issue.
Kent’s geography puts it at the front line of UK-EU goods movement. Dover and the wider cross-Channel corridor are central to freight traffic between Britain and continental Europe. Local firms not only experience the effects as traders; many also operate in supply chains, logistics, warehousing, food, manufacturing and retail networks that depend on predictable cross-border movement.
When documentation is wrong, incomplete or delayed, the impact can be felt beyond the port itself. A delayed pallet can affect a small retailer waiting for stock, a manufacturer needing components, a wholesaler managing customer orders, or a haulier trying to keep vehicles moving efficiently.
That is why Kent businesses’ concerns about Brexit red tape often have a strongly practical focus. The question for many firms is not whether trade is still possible — it is — but whether the extra time, cost and uncertainty make certain transactions less profitable or harder to manage.
What businesses are saying about costs
The BBC South East report provides a clear local example of cost pressure. Pots and Pithoi, a business cited in the report, said shipping costs had increased sharply, from £100-£150 to £1,200 per pallet. The company linked those higher shipping costs to lost sales.
That example should not be treated as a universal price rise across all Kent firms. Costs vary by sector, product, destination, volume and logistics provider. But it illustrates why some smaller firms are particularly exposed: if a shipment is relatively low value, a large increase in per-pallet or administrative costs can make an EU order uneconomic.
Reuters has also reported on Federation of Small Businesses research indicating that small UK firms face trade barriers in the EU, particularly around customs documentation and VAT systems. According to that report, 60% of small and medium-sized enterprises surveyed encountered substantial trade barriers, and 85% of those engaged in importing and exporting reported issues. The FSB also warned that 30% of SMEs may reduce or stop EU trade if current rules remain unchanged.
For Kent’s local economy, those pressures matter because many firms are not large multinationals with in-house customs teams. Smaller businesses may have to pay intermediaries, train staff, change delivery terms or restrict where they sell.
Which sectors are most exposed?
The available sourced examples point to several areas of exposure, although the scale differs from business to business.
| Sector or activity | Why Brexit red tape can matter | Sourced example or basis |
|---|---|---|
| Importers and exporters of physical goods | Goods may require customs declarations, correct commodity codes, VAT handling, and supporting documentation. | Government import and export guidance; FSB findings reported by Reuters. |
| Retail and wholesale firms buying from or selling to the EU | Higher shipping or administration costs can affect margins, especially on smaller consignments. | BBC South East report citing Pots and Pithoi’s increase in pallet shipping costs. |
| Logistics and freight-linked businesses | Cross-border movement depends on correct paperwork and border processes; delays can affect scheduling. | Kent’s position near Dover and cross-Channel routes makes this locally significant. |
| Businesses needing skilled staff | Recruitment may be affected by new immigration rules and reduced ease of hiring from the EU. | BBC South East report citing Moni Varma of Veetee on skilled hiring difficulties. |
Some businesses have adapted. The BBC report also noted optimism from Jack Bexter from Europa, showing that experiences are not uniform. Some firms have changed processes, absorbed costs, found new routes or adjusted their customer base. Others say the extra administration still weighs on trade.
How paperwork can become a business cost
Red tape is often discussed as paperwork, but for businesses, it can turn into direct and indirect costs.
Direct costs may include paying customs agents, freight forwarders or consultants to complete declarations and ensure documents are correct. Firms may also need software, staff training or additional administrative time.
Indirect costs can arise when shipments are delayed, customers cancel orders, stock arrives late, or staff spend time resolving documentation problems instead of selling or producing goods. For perishable, seasonal or time-sensitive goods, delays can be especially disruptive, though the effect depends on the product and supply chain.
Businesses may respond by increasing minimum order sizes, changing suppliers, altering delivery terms, reducing EU sales, or passing on some costs where the market allows. However, it would be too broad to say all post-Brexit costs automatically feed into consumer prices. Whether prices rise depends on competition, margins, contracts, and a business’s ability to absorb additional costs.
What business groups and officials have said
The Federation of Small Businesses, as reported by Reuters, has called for measures including mutual recognition of product standards, a single digital customs system, a new UK-EU low-value trade deal and financial support for small firms engaged in export. Those proposals reflect concerns that small businesses face disproportionate burdens compared with larger companies when dealing with customs and regulatory systems.
Official guidance from the UK Government sets out the practical steps businesses need to take when importing and exporting. This includes checking duties and VAT, using the correct commodity codes, making customs declarations and ensuring relevant licences or certificates are in place where required.
These are not optional administrative details. If paperwork is missing or incorrect, goods can be delayed, refused or subject to further checks. For firms trading through Kent routes, that can mean operational disruption as well as extra cost.
Why this matters
Kent’s role in UK-EU trade means Brexit-related business processes are felt locally in a concentrated way. A change in customs procedures or border readiness can affect not just a company importing goods but also hauliers, warehouse operators, retailers, manufacturers, and customers further down the supply chain.
For small firms, the concern is often scale. A large company may be able to spread compliance costs across thousands of shipments. A small Kent business sending occasional pallets to the EU may find the same fixed costs far harder to absorb.
The local economic issue is therefore not only whether trade continues, but how easily and profitably firms can participate in that trade. As businesses adapt to changing markets, companies often respond to new costs by changing processes, suppliers, routes, or customer strategies.
What to watch next for local firms
There are several practical points to watch for Kent businesses over the coming months and years.
- Further changes to border controls: any new or revised checks can affect firms moving goods through cross-Channel routes.
- Digital customs systems: business groups have called for simplification, and any move towards easier digital processes could matter for small firms.
- UK-EU regulatory discussions: changes to product standards, recognition arrangements, or low-value trade rules could alter compliance burdens.
- Small-business EU trade levels: if more SMEs reduce or stop EU trade, the effect could ripple through local supply chains.
- Recruitment pressures: businesses exposed to skilled labour shortages may continue to report difficulties if hiring remains constrained.
The key point is that Kent businesses’ Brexit red tape concerns are not only about the first disruption after Brexit. For many firms, the issue is the continuing cost of operating under a more complex trading system.
Frequently Asked Questions
What are Kent businesses saying about post-Brexit red tape?
BBC South East has reported that businesses in the region face increased costs, more red tape and difficulties trading with the EU. One cited business, Pots and Pithoi, said pallet shipping costs had risen sharply, contributing to lost sales.
Why is Kent especially affected by cross-Channel trade rules?
Kent is close to Dover and major cross-Channel routes, so local firms are closely linked to UK-EU goods movement. Changes to customs paperwork, border checks, and freight processes can therefore have a direct impact on local businesses.
Which firms are most exposed to extra paperwork or costs?
Firms importing or exporting physical goods are especially exposed because they may need to prepare customs declarations, commodity codes, handle VAT, and provide supporting documents. Small firms can feel these burdens more sharply because they have fewer staff and lower shipment volumes.
Do higher business costs always lead to higher prices?
Not always. Extra customs, shipping, or administrative costs can put pressure on margins, but whether they feed into prices depends on the product, competition, contracts, and whether the business can absorb the costs.
What should Kent firms watch next?
Businesses should monitor changes to border checks, government customs guidance, UK-EU trade processes, and any simplification measures proposed for small firms. Business group calls for changes to digital customs and low-value trade are also relevant.