‘Brexit could cost UK aerospace $2 billion’

Bloomberg

Britain’s exit from the European Union could cost the UK aerospace industry 1.5 billion pounds ($2 billion) in extra customs expenses, the sector’s national lobby group said in a submission to lawmakers.
The sum would come from “increased checks at the border”
if British and EU processes do
not remain harmonised, ADS Group said in evidence to Parliament’s Business, Energy and Industrial Strategy Committee.
Additional burdens such as paperwork on proof of origin, regulatory compliance, storage and delays could total 15 percent of the value of each transaction, it estimates.
The potential expense “is extremely worrying and risks making our aerospace industry less competitive and driving up costs at a crucial time for our economy,” Rachel Reeves, the opposition Labor lawmaker who chairs the committee, said. That in turn “could have a negative impact on future investment decisions,” she added.
The committee will take evidence on Tuesday from industry representatives including ADS Chief Executive Officer Paul Everitt and Katherine Bennett, vice president of Airbus SE’s UK arm.
It will also receive written submissions from companies including Boeing Co., as well as from the Department for Business, Energy and Industrial Strategy.