Richard Davies is the country managing partner for Netcompany.
The UK’s 2025 Trade Strategy makes a bold promise: to make the UK the world’s most innovative, inclusive and resilient trading nation. This ambitious programme must include customs modernisation and better joined-up HMRC systems while piloting new digital trade corridors with our European neighbours.
For many UK businesses, the border acts as a tax on efficiency. It is not just the financial costs that bite; it is the time spent re-entering the same data across different systems, the uncertainty caused by last-minute paperwork issues, delays causing knock-on impacts for deliveries, products spoiled and the lost opportunities when new would-be exporters give up before they have even begun.
This is borne out in the data. HMRC’s own Customs Administration Burden research report (July 2025) found that more than eight in ten traders experienced some kind of delay when clearing customs. The Federation of Small Businesses says that small UK firms are kept out of overseas markets by “complex customs procedures”.
There is a significant opportunity to use customs digitalisation and modernisation to provide a major boost to exporters and importers. This will benefit SMEs the most as they face the highest trade barriers while having the least resources to address them.
It is now time for the government, working together with businesses, to demonstrate how the ambitions in the Trade Strategy can be turned into on-the-ground experience for UK traders.
Customs digitalisation and modernisation can unlock growth
A truly digital border uses real-time data, automation and joined-up systems to cut duplication, speed up clearance procedures and reduce the need for physical interventions. Estimates of rewards to businesses vary, but a report from the London School of Economics (LSE), commissioned by the Department of Business and Trade (DBT), found that implementing advanced digital trading options could boost GDP by up to 1.3% – increasing UK exports by between 3% and 7%.
History has demonstrated that substantial improvements in commerce flow are achievable only by embracing “breakthrough” policies, accompanied by innovative IT solutions.
The EU started enjoying a radical boost in goods cross-country transport speed, reliability and compliance shortly after putting in action the pan-European integrated New Computerised Transit System (NCTS), along with the much-needed underlying infrastructure for exchanging secure messages (ITSM).
Asian successes
It was not a surprise that the ASEAN countries of Southeast Asia, some 10 years later, reached out for EU assistance in replicating a similar integration success story, which led to the ASEAN Transit system (ACTS).
Netcompany (through its currently integrated Southeast Europe and EU branch, back then known as Intrasoft) was the main implementor and design contributor of both these critical trade enablement success stories, upon which both regions continue to build a rich ecosystem of applications, accepted as “best practises” around the globe.
Other countries are already reaping the rewards. Singapore’s fully digital clearance systems process goods in under 10 minutes.
Among other numerous customs and trade facilitation projects around the world, Netcompany has also implemented the NCTS in Ukraine. The customs IT system was developed under difficult circumstances in collaboration with local experts to ensure integration and interaction across European customs systems – including those of EU member states and the UK.
This facilitates smoother trade between Ukraine and Europe, simplifying the movement of goods and (re)enabling Ukraine as a safe transit path. It is a vital step to bring Ukraine closer to EU membership, rebuild, and help ensure that both the country and its citizens have the supplies and goods needed to get through the war.
Growth is not the only benefit. In a volatile geopolitical climate, a smart border improves supply chain visibility, supports enforcement and strengthens trade relationships.
Realising the UK’s border potential
To fulfil the commitments outlined in the Trade Strategy, delivery must be accelerated. Systems integration, governance reform, and investment in capabilities are essential components and should be complemented by deep engagement with businesses and learning from best practices overseas. There is significant potential in sustained mechanisms for co-design with traders that go beyond mere consultations.
A food exporter should be able to submit one set of digital data, track their shipment in real time and receive rapid clearance without needing a consultant or broker. A manufacturer in Manchester should be able to export parts without fearing paperwork errors that delay delivery or sour customer relationships. The technology to do this exists. The will, in strategy and speeches, is clear.
To close the gap between vision and delivery, the government should focus on three things.
- First, identifying opportunities for public-private partnerships that can help drive forward key concepts
- Second, drawing on best practices from around the world in digital border delivery, and looking for ways to integrate them into the UK system
- Third, using innovative pilot projects to identify and scale high-impact opportunities. A new digital trade corridor between the UK and EU would be a fantastic opportunity to explore the potential benefits of digital borders
A digital border is not just a policy lever but a platform for growth. It can reduce costs, unlock exports and help businesses respond faster to change.
The UK has the right strategy. Now it needs to make the border fit for the economy it wants to build.
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