Anthony Buckley
Keymaster

CKI Membership - Individual
Post count: 215

In answer to the comments raised by Dale Fletcher, there will be little or no effort to resolve the situation unless radical action is taken. Firstly, SMEs complain because they have little spare financial resources to take the appropriate action. Secondly, they have few or no human resources to act on the changes and adopt them. Thirdly, they have little or no international trade expertise, and fourthly, there is a lack of will to act because many cannot be bothered to determine the requirements. Hence the downward spiral. This also explains why present training initiatives through the Chambers of Commerce or elsewhere, be it IOEx or the UK Export Academy, are not well subscribed. And these same companies wonder why, when they do export, much of the documentation is erroneous, and here speaks a voice of experience in encountering this, given the number of clients with no idea whatsoever in how to deal with any of the technicalities of exporting. The same goes for export licensing, with may companies not even aware that there are EU and UK sanctions against many countries, and then wonder why their consignments are being seized at the frontier.   There appears overall to be a lack of will to act or become more knowledgeable in such matters, never mind basic knowledge of export or import procedures. Areas of concern include:

Internal management;

Export procedures, documentation and compliance;

Import Procedures, documentation and compliance;

Valuation;

Origin;

Duty and VAT liability;

Export Controls and Licensing;

Withholding Tax;

Record-Keeping;

VAT Accounting;

Excise Management.

The list could go on, but it goes to show that most companies want the easy option of selling without learning about the technicalities and compliance. Tell that to the Americans and the Europeans. They ram these issues down companies’ throats and strike hard if things go wrong. But then, when we have a department like HMRC which is not there to help anyone other than offer cryptic and non-understandable writings on their website, who should be surprised if it all fails to work? Which is why we consultants exist, to at least guide the novices or victims through the swamp, in the manner of the “Kybernetika”, the Greek word for a Guide, hence the wonderful subject of Cybernetics. It is not a difficult subject to understand, but it is a very powerful one. It explains how the company should work and be efficient, but it also explains the maxim “Duff information in, duff information out”. I wrote a book on the subject of Cybernetics a couple of years ago (Introduction to Cybernetic Synergy), and it should be obtained and read thoroughly. It effectively resolves all these problems very simply. Analyse the business, identify the issues and resolve them, preferably by way of the Viable Systems Model (VSM). Ensure that quality information is obtained, and that it is derived and used properly. Understand the brain of the firm and how an internal corporate system works or should work based on an internal neural network. Artificial Intelligence (AI) cannot work unless the Neural Network or Artificial Neural Network (ANN) is fully understood and functions perfectly. If one part of the system fails, the whole system fails.

As per the Six Sigma approach, DMAIC – Define, Measure, Analyse, Implement and Control. Every importer and exporter needs to analyse their business, identify the primary needs and issues, and resolve them. If not, the situation will only get worse, not better. The Irish complain that trade with the UK has diminished. No surprise, get the UK to address its issues and resolve them on a positive basis. For every one negative aspect, there are TEN positive aspects. Trade will then increase and flourish.

That should be the UK’s New Year Resolution. Apply, commit and motivate yourselves, and MAKE IT WORK!  Stop the negativity and pity party, and get real. We only have one life – we should commit ourselves to it properly!

A Happy, Fruitful and Prosperous New Year to you all.