Parcel courier DPD has announced that is it suspending its road delivery services to Europe, including to Ireland due to Brexit.
The firm said that “complex” Brexit procedures are causing issues as a fifth of parcels are now being sent with "incorrect or incomplete" data, meaning they need to be returned.
“The EU-UK Trade and Cooperation Agreement resulted in more complex processes, and additional customs data requirements for parcels destined for Europe,” DPD said in a statement.
“This, along with delays and congestion at UK ports for channel crossings, has placed extra pressure on our turnaround and transit times.
“We are seeing up to 20% of parcels with incorrect or incomplete data attached, resulting in these parcels needing to be returned to customers, so that the required data can be provided.
“In view of this unprecedented set of circumstances we believe that it is only right to pause and review our road service into Europe, including the Republic of Ireland.”
DPD says that it will work with its customers “to validate and correct the data” in the system, to “reduce the delays and enable us to resume normal service.”
The pause in operations “will be as short as possible” with intentions to recommence the service” on 13 January, it said.
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The announcement comes amid similar warnings from high street retailer Marks and Spencer (MKS.L) on Friday.
M&S said the UK’s new free trade agreement with the EU will “significantly” impact its business in Ireland and franchises in the EU.
The retailer said its business in Ireland and the Czech Republic and franchises in France would suffer due to tariffs on goods exported to the EU and “very complex administrative processes.” The firm said it was “actively working to mitigate” the impact.
Other retailers are reportedly weighing their options.
On Thursday, struggling department store Debenhams took the decision to shut its Irish website due to the impact of the trade deal. John Lewis has also stopped serving Ireland.
Meanwhile, transport secretary Grant Shapps said “busy times” may return to UK borders as companies get to grips with new paperwork after the exit from the EU single market.
The UK clinched a last-minute Brexit agreement with the bloc on Christmas Eve, which will see tariff-free and quota-free trading between the pair.
Under the agreement, food and goods imported into the UK from third countries and then shipped to the EU will face charges. The deal also introduces new customs checks and paperwork at the border.
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