Border freight delays ease as new customs regime beds in 

After several days of disruption and delays for commercial freight at the border, there were signs last Friday that business was settling into the requirements of the new customs regime that came into effect on July 15.

Prior to the UK/EU treaty coming into provisional implementation, the commercial gate would see anywhere between 230 and 250 lorries cross daily.

But even as the problems started to bite last week, up to 180 lorries were being cleared daily, with the backlog larger than usual because the Spanish side had been closed on Monday for a public holiday.

The challenges were exacerbated by the La Linea fair, which meant the usual parking area available to lorries while they waited for clearance was not available.  In practice, that meant drivers had to queue twice, once to clear Spanish customs and then again for Gibraltar customs, and at times the queue caused congestion on La Linea’s roads.

“Everything's flowing, not quite as per normal yet, but we’re moving in that direction,” said Gemma Arias-Vasquez, the Minister for Health and Business. 

Mrs Arias Vasquez acknowledged the difficulties and said that, despite trials ahead of implementation, it was only once the new regime was put into practice that unexpected problems arose. 

She underscored the cross-border effort to iron out those issues as they emerged. 

“Every single issue that we've had, we’ve had assistance from every single layer of the Spanish authorities,” she told the Chronicle. 

“But the first time is always going to be an issue.” 

“The second time will be easier, the third time will be far easier, and by the fifth time, nobody's going to ask any questions. It's going to become a matter of routine.” 

But while there was a clear collaborative spirit on both sides of the border, there was frustration too. 

On the Spanish side, some operators felt officials and businesses in Gibraltar were not ready for the change and did not fully understand what was required of them under the new regime. 

On the Gibraltar side though, the concern was that it was Spanish counterparts who were not reflecting the treaty changes. 

One case in hand was with shipments of UK foodstuffs bound for Gibraltar that had already been cleared on first entering the EU and were not subject to subsequent checks at the Spanish customs post in La Linea. 

Spain’s tax agency, the Agencia Tributaria, had to issue guidance to customs operators explaining there was no need for repeat checks in La Linea and that these were needed only at the first point of entry into the EU in line with the Gibraltar UK/EU treaty. 

There were issues too with shipments of British pharmaceuticals, which under the treaty are exempt from duties and can be sold in Gibraltar, although not elsewhere in the EU.  

On the ground, Spanish customs officials were unaware of that exemption, causing delays until the matter was clarified. 

There were also IT issues, with the Spanish system operating a different dataset to the Gibraltar system, meaning the manual work of inputting codes was duplicated as both systems operated independently. 

Authorities on both sides of the border are now working on a technical solution so that the datasets used by each system are identical, removing the need to input the same customs information twice. 

In the freight community here in Gibraltar, there was a sense among some operators that much of this could have been avoided with better preparation. 

While switching to a new customs regime was never going to be easy, customs agents and freight forwarders had for months been seeking detailed clarification because they anticipated problems. 

The Opposition echoed that sentiment as it reacted to the delays. 

“Teething issues are understandable, but when the Government has been saying they were ready in April and when they have had the benefit of an extra three months until July, it is surprising that these issues are happening at all,” said GSD MP Craig Sacarello.  

“Was the Government actually ready to deal with these issues?” 

“Most of the technical issues could and should have been pre-empted had greater focus been placed on the logistical practicalities facing the movement of goods much earlier on.”  

“It seems there is a ‘learn on the job’ approach which, in turn, heaps the pressure on to businesses who have to deliver for customers and have wages bills and taxes to pay.” 

But part of the problem was that practical arrangements relating to customs stemming from the UK/EU agreement were still being finalised by negotiating parties only days before the treaty itself was signed. 

That meant the fine detail only became available very close to D-Day. 

The Government urged the Opposition not to politicise the practical implementation of a complex treaty that ran to over 1000 pages and covered many different aspects of daily life. 

The Gibraltar Federation of Small Businesses said there was no escaping that last week was “incredibly frustrating” for many businesses, but remained upbeat nonetheless. 

“Importers understand that implementing one of the biggest changes to Gibraltar’s customs arrangements in decades was never going to be effortless – teething problems are normal and all that - but they need assurances that these will be resolved quickly,” the GFSB said. 

“The encouraging sign is that, where genuine issues have emerged, Government, HM Customs and businesses have been working together to identify and resolve them quickly.” 

“If that collaboration continues, today’s delays should increasingly become tomorrow’s lessons.” 

“The treaty may have transformed how people cross the frontier. Making goods move with the same confidence is now the next challenge.” 

And while the freight disruption was perhaps the most visible of the treaty implementation issues that arose last week, it was, as Chief Minister Fabian Picardo acknowledged, “the tip of the iceberg”. 

Dr Joseph Garcia, the Deputy Chief Minister, said the implementation of the treaty would inevitably involve a period of adjustment. 

“New processes and procedures are now in place, and citizens, businesses and even the relevant authorities themselves need time to become fully accustomed to them,” he said. 

“The teething issues experienced since the treaty's provisional application are not unusual, given the scale and significance of the changes introduced.” 

“As the new arrangements have bedded in, travellers and businesses have naturally had questions, while considerable practical work has taken place behind the scenes to address issues as they have arisen.”  

Dr Garcia said Government ministers and officials were closely monitoring developments and remained in constant contact with the relevant authorities in the UK, Spain and the EU.  

He said the shared objective was to ensure that every issue was resolved as quickly and effectively as possible. 

“It is important, however, not to lose sight of two fundamental points,” he added.  

“First, the historic significance of what has been achieved. Second, that the alternative was never the status quo, but the hard reality of life without a treaty, including the full impact of the Entry/Exit System at the land border.” 

“The immediate benefits of removing controls at the land border over the past week have already been felt by residents, tourists, and workers on both sides of the frontier.” 

“They now enjoy a level of predictability and fluidity that had become increasingly difficult to maintain after Brexit.” 

“That certainty is important not only for Gibraltar but also for the wider region, where our economies are closely interconnected.”