EU Exit Updates

 

A guide to Postponed VAT Accounting (PVA) 

Published 21st April 2021 

The Government has provided some new advice for people using Postpoed VAT Accounting (PVA) in post-Brexit Britain.

Accounting for import VAT on your VAT return (also called Postponed VAT Accounting) means you'll account for and recover import VAT on the same VAT return, rather than having to pay it upfront and recover it later.

Here are the steps that you can take to make sure you benefit when you're importing goods into Great Britain or Northern Ireland, from any country.

Question 1: I've heard about PVA, but I'm not sure if it's for me. Why should I use it, and where can I find out more about it?

Answer: PVA allows UK VAT registered importers to account for and recover import VAT on their VAT return. PVA is available permanently and we expect that most businesses will choose to use it, because it provides significant cash flow benefits compared to the alternative of paying the import VAT when the goods are imported.

Different rules apply in different situations. In some cases, you must account for import VAT on your VAT return - for example, if you delay your customs declaration.

You can go to GOV‌‌‌‌.UK to check when you must use PVA to account for import VAT on your VAT return, and when it is optional.

Question 2: How do I tell HMRC that I want to use PVA?

Answer: There isn't an application process for PVA, and you do not need to tell HMRC in advance if you want to start accounting for import VAT on your VAT return. You need to confirm in your customs declaration that you are using PVA.

If you use the Customs Handling of Import and Export Freight (CHIEF) system

On your declaration, enter:

• your EORI number starting with ‘GB' which includes your VAT registration number into box 8 (Header Consignee), or, if applicable, your VAT registration number in box 44h (Registered Consignee)
• 'G' (Postponed accounting for VAT approved) as the method of payment in Box 47e.

If you use the Customs Declaration Service (CDS)

On your declaration, enter:

• your VAT registration number at header level in data element 3/40.

Please note that VAT will be recorded against your EORI and will be at declaration level only.

If someone else is doing your customs declarations for you such as a freight forwarder, customs agent, broker or fast parcel operator you must tell them you want to use PVA. Tell them that you want to use PVA to account for import VAT on the imported goods, so that they can complete the customs declaration correctly on your behalf. Keep a written record of what is agreed for your records.

Whoever completes the declaration must take care when selecting how to account for import VAT on the customs declaration, as this cannot be changed once the declaration has been submitted.

Question 3: How do I complete my VAT return if I'm using PVA?

Answer: After you have selected PVA on your customs declaration you will need to account for import VAT when you complete your VAT return.

To complete your VAT return, you will need:

• details of any customs entries you have made in your own records
• copies of your monthly postponed import VAT statement, when available.

Unless you have delayed your customs declaration, each of your statements will show the total import VAT postponed for the previous month.

If you are delaying your customs declarations:

• you must account for import VAT on the return which includes the date you imported the goods
• to complete the boxes on your return, you'll need to estimate the import VAT due from your records of imported goods
• when you submit your delayed declaration, you must select that you're accounting for your VAT on your return.

Your next online monthly statement will show the amount of import VAT due on that declaration. You'll then be able to:

• adjust your estimate
• account for any difference on your next return.

Question 4: How do I get the statement I need to complete my VAT return?

Answer: If you account for your import VAT on your VAT return, you'll need to get a postponed import VAT statement online.

Unless you have delayed your customs declaration, each statement will show the total import VAT postponed for the previous month.

Your statements will usually be available to view by the 6th working day of the month.

To view your statements, you'll need a Government Gateway user ID and password which is linked to your EORI number. If you do not have a user ID and password, you can create your account on GOV‌‌‌‌.UK.

Further help and support on importing and exporting

There is a range of customer support, online guidance and tutorials available to help you. Here's some of the support that's available for you:

YouTube videos

Watch the short videos on HMRC's YouTube channel to familiarise yourself with customs processes and what you need to do before trading goods with the EU.

Live webinars

You can attend webinars about:

• Customs Import Declarations: An overview
• Exporting: what you need to do to keep your goods moving
• Importing: what you need to know about Staged Controls
• Trader responsibilities when using an intermediary.

If you'd like to attend a webinar you can register here.

Check out the forums

To ask and get answers to specific questions about HMRC processes for importing or exporting, please visit the customer forums.

Call the hotline

Customer service advisors are available to answer your queries on the Customs and International Trade helpline. They'll help you with importing, exporting and customs reliefs. The helpline is open from 8‌‌‌‌am to 10‌‌‌‌pm Monday‌‌‌ to‌‌‌ Friday and from 8‌‌‌‌am to 4‌‌‌‌pm at weekends. Call to speak to an advisor on 0300‌‌‌‌ ‌322‌‌‌‌‌‌‌ ‌9434.
 

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Apply for a grant to help small and medium-sized businesses new to importing or exporting

Published 21st April 2021

You can now apply for the SME Brexit Support Fund. Smaller businesses can get up to £2,000 to pay for practical support, including training or professional advice to adjust to new customs, rules of origin and VAT rules when trading with the EU.

You can apply and find more information on eligibility here.
 

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NI firms to use EU subsidy rules for Covid recovery loans 

Published 20th April 2021 

Northern Ireland firms applying for new government-backed Covid recovery loans will have to do so within EU subsidy rules.

Some firms in Great Britain may also be covered by EU rules depending on the extent of their business in NI.

Under the Recovery Loan Scheme (RLS) UK firms can borrow between £25,001 and £10m.

The money will be lent by banks with the government guaranteeing 80% of the loan.

The terms of the NI Protocol mean Northern Ireland is still in the EU single market for goods and so is still subject to EU subsidy rules for trade in goods. This mostly affects manufacturers.

It means that firms in Northern Ireland applying for the RLS will have to comply with what is known as the EU's Undertaking in Difficultly (UID) test.

These are EU rules setting out the circumstances in which state support can be given to a firm which is in financial trouble.

 

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Freight traffic between Welsh and Irish ports rises after slump 

Published 20th April 2021   

One of the largest Irish Sea ferry operators says freight traffic is on the up between its ports in Wales and Ireland, following a dip after Brexit.

It was down by half for much of the first three months of 2021 at Holyhead and Fishguard.

Ferry operators said this was partly because lorries from Ireland to other EU countries had started going on ferries direct to France.

But latest Stena Line figures show the reduction in lorry numbers is now 28%.

The figures are for the week ending on Easter Sunday, compared with the same week last year.

The company said at least one major exporter had now begun sending lorries through Holyhead again, and others were sending test loads as they look at returning to the route.

 

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UK exports to Ireland partially recover following Brexit 

Published 20th April 2021   

Trade between the UK and Ireland partially recovered in February, after a steep drop in January following Brexit.

The value of UK exports to Ireland was up by 38% month-on-month from £1.13bn to £1.56bn.

That is still down by more than 7% compared to February last year when exports were valued at £1.69bn.

The figures for Irish imports to the UK continued to deteriorate, down by 21% month-on-month and 17% year-on-year.

The value of Irish imports in February was £877m, the worst month in more than 10 years according to figures from the Office for National Statistics (ONS)

The trade figures were the first since new rules came into force as a result of Brexit.

 

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UK exports to EU rebound partially after January's slump 

Published 14th April 2021   

Trade between the UK and EU partially recovered in February, after a steep drop in January following Brexit.

Official figures show exports to the EU jumped by 46.6%, £3.7bn, to £11.6bn, following January's 42% slump when firms struggled with new trade rules.

However, the Office for National Statistics said exports were still below last year's levels and imports from the EU had seen a weaker recovery.

Other figures from the ONS showed the UK economy grew by 0.4% in February.

The UK's statistics body said the economy was still 7.8% smaller than a year earlier, before the impact of the pandemic.

Last month's trade figures were the first since new trading rules came into force as a result of Brexit trade rule changes.

Both the ONS and business analysts said the drop in trade flows was partly caused by stockpiling in December 2020, as businesses tried to get ahead of the introduction of the new rules, depressing trade in January.

In addition, the end of the temporary trading arrangement between the UK and the EU coincided with the discovery of a new strain of Covid-19 in the UK, which caused further complications and delays, after lorry drivers were required to take tests before crossing the border at the English Channel.

 

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UK delivers NI Protocol 'road map' to the EU 

Published 14th April 2021   

The UK has delivered its "road map" for implementing the Northern Ireland Protocol to the EU.

Lord Frost, the UK's lead Brexit Minister, and EU Commission Vice-President Maroš Šefčovič spoke on Wednesday.

The protocol is the part of the Brexit withdrawal deal that created the Irish Sea border. Earlier this month, the UK government changed how the protocol was being implemented without EU agreement. It delayed the introduction of new sea border checks on food, parcels and pets. It also moved unilaterally to ease the trade in horticultural products across from Great Britain to Northern Ireland.

The EU has begun legal action as a consequence.

 

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Moving goods between Great Britain and Northern Ireland

Published 7th April 2021   

The Government has updated some of its guidance with regards to how business trade in post-Brexit Britain.

They include details on businesses which move goods Great Britain to Northern Ireland.

Businesses are required to complete the following five actions:

• Registering for the Trader Support Service
  
• Get an E ORI number
• Check your commodity codes
• Check whether the UK Trader Scheme could help your business
• Check goods regulation: Manufactured and agri-food goods

For more information, click here.

For the updated explainer video on moving goods into, out of or through Northern Ireland, click here.

For a list of helpful videos about the Trader Support Service, click here.

Subsidy Control Rules 

Published 30th March 2021  

The Department for Business, Energy and Industrial Strategy has launched a consultation on establishing new rules around government subsidies, to prevent any distortive impacts of financial support on competition within the UK and internationally.

This consultation has been published following the end of the transition period for leaving the European Union on 31st December. The consultation is about establishing new UK subsidy control rules, to replace existing EU-derived state aid law. The main impacts of existing state aid rules are requiring retailers to complete state aid declarations when receiving business rates relief or other financial support, and preventing access to financial support when a €200,000 over three fiscal year limit is reached.

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HMRC tax and customs support to businesses that trade with Europe

Published 29th March 2021 

VAT-registered businesses that trade with the EU are being offered further customs and tax support by HM Revenue and Customs. Support includes:

• The SME Brexit Support Fund
• Regular live webinars
• The ability to delay import declarations on duty payments on goods moving between the EU and GB
• The ability to appoint a specialist to deal with import and export declarations
• Preferential rates of duty (where eligible)
• Support for moving goods through Northern Ireland

For more information, click here.

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Moving goods from Great Britain to Northern Ireland

Published 26th March 2021   

• New guidance has been published on moving goods from GB to NI here.
• The guidance sets out 5 key actions businesses should take including; registering for Trader Support Service, getting an EORI number, checking commodity codes and checking goods regulation.
• If your business moves goods into Northern Ireland, the free to use TSS here will help you navigate the changes to the way goods move between Great Britain and Northern Ireland.
• The grace period for certification required on agri food goods has been extended until at least 1 October 2021.
• There will be a review of the arrangements in advance of that point, with further guidance to be published on the phased introduction of certification. 

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SME Brexit Support Fund is open for applications

Published 15th March 2021  

The SME Brexit Support Fund could give you up to £2,000 to help with training or professional advice, if your business has up to 500 employees and no more than £100 million annual turnover.

Traders can apply for up to £2,000 in total through two types of grants:

Grant for Training: The grants can be used to provide training on the following:

• How to complete customs declarations
• How to manage customs processes and use customs software and systems
• Specific import and export related aspects including VAT, excise and rules of origin

Grant for Professional Advice: The grant can be used to get professional advice, so your business can meet its customs, excise, import VAT or safety and security declaration requirements.

Find out more information on eligibility for the fund and apply online .

Applications will close on 30 June 2021 or earlier, if all funding is allocated before this date.

 

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Value Added Tax EU Exit Transitional Provisions

Published 8th March 2021 

Guidance on the VAT treatment of transactions, or movement of goods which span the end of the transition period, has been updated at Section 6: Financial services, and includes a link to the new detailed guidance on transitional guidance for VAT specified supplies. 

For more information, click here.

 

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SME Toolkit: Trading with the EU and Northern Ireland

Published 8th March 2021 

A new summary of actions SMEs may need to take to trade with the EU is now available.

The document provides an overview of actions to take, outlines support, helplines and resources that may be useful for SMEs, and signposts more detailed guidance on Government websites.

To view the toolkit, click here.

 

The Vnuk law requires a wider range of vehicles than those such as cars and motorbikes to be insured, including ones previously not requiring insurance, such as golf buggies, mobility scooters, quad bikes and potentially e-bikes.

The Government has now announced the decision to scrap the controversial Vnuk from British law, stating that this change will "reiterate benefits of leaving the EU, as we take back control of our own laws and regulations".

Implementing compulsory third party insurance for those riding e-bikes on pubic land has not been sufficiently proven to be necessary and could have seriously damaged the e-bike market.

For all EU Exit updates for e-bikes visit the page here.

 

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Brexit key terms

Published 1st March 2021 

The Government have released a helpful flowchart to help explain how to import from & re-export union goods to the EU.

The document also includes a full list of Brexit key terms, these are copied below:

• Origin/Originate - Rules of origin determine where your goods originate from. This means that the origin is the economic nationality of goods being imported and exported (where they have been produced or manufactured). It is not just where they have been shipped or bought from.
  
• TCA preference - A zero rate of duty provided under the UK-EU Trade and Co-Operation Agreement (TCA).
  
• Preference - A reduced or zero rate of duty provided under an agreement that the UK has entered into with another country.
  
• Union goods - Union goods means:
  a) Goods wholly obtained in the EU and not incorporating goods imported from outside the EU.
  b) Goods imported into the EU and released into free circulation in the EU.
  c) Goods obtained or produced in the EU from goods in categories a) & b).
  
• Preferential origin - Applies to goods that are being traded between the Parties to a preference agreement and which meet the rules of origin and
  origin procedures within that agreement.
  
• Non-preferential origin - These are rules that apply for purposes other than preferential duty, for example, if trade embargoes or Anti-Dumping Duties apply or for compiling statistics.
  
• Statement on origin - This is an origin declaration (also known as an ‘invoice declaration') that is made by using a commercial document that has enough detail to identify the origin of the goods. This can be an invoice, packing list or delivery note.
  
• Importer's knowledge - This allows the importer to claim preferential tariff treatment merely based on their own knowledge about the originating status of imported products.
  
• Free circulation - This applies to goods that are duty paid and cleared by Customs and which can now be sold, or used within the customs territory.
  
• Transit - The Common Transit Convention is used to ease the movement of goods between or through any common transit countries. The UK is a member of the Common Transit Convention.
  
• Special Procedures - Customs special procedures allow you to store, temporarily use, process or repair your goods and get partial or full relief from import duty, or in some cases suspension of duty.
  
• UK Global Tariff - The UK Global Tariff (UKGT) applies to all goods imported into the UK unless the country you're importing from has a trade agreement with the UK or an exception applies, such as a relief or tariff suspension or the goods come from developing countries covered by the Generalised Scheme of Preferences.
  
• Returned Goods Relief - This is a relief that can be applied to goods which are being re-imported into the UK that have previously been exported from the UK. You may also be able to claim relief on goods that you re-export to the EU that have previously been exported from the EU, but
  you will need to check with the relevant EU customs authority.
  
• Product specific rules - For every product traded under a free trade agreement, there is a corresponding product-specific rule (PSR) that must be met to demonstrate the product originates in the free trade area and qualifies for preferential tariff treatment.
  
• Goods subject to any form operation - Goods that are not substantially processed or transformed but undergo some form of minimal processing.
  
• Wholly obtained - Your goods are normally classed as ‘wholly obtained' if they're natural products, or products manufactured entirely from them that
  completely originate from the country or territory covered in preference agreements.
  
• Wholly produced - Wholly produced goods are those produced or manufactured exclusively from wholly obtained inputs.
  

Webinars and Podcasts

Published 24th February 2021

All webinars and videos for organisations that trade with the EU can be found here. This includes the following:

• NEW: Exporting: What you need to do to keep your goods moving: A new YouTube video from HMRC is now available to watch on-demand. To view this, click here.
• Video content to keep your business moving: short on-demand videos covering the new rules on exports, imports, tariffs, data and hiring.
• Customs Import Declarations: Register here to take part if you're planning to import or export. This webinar takes place on February 23 (11.45am), and again on March 4 (11.45am).
• Importing: What you need to know about Staged Controls: This webinar takes you through the three stages of the new border controls introduced on ‌January 1,‌‌ ‌2021, and what actions you need to take for each stage. Register here to take part if you're planning to import.
• Exporting: what you need to do to keep your goods moving: An overview of the actions you need to take now before you export goods from Great Britain to the EU and move goods between Great Britain and Northern Ireland. Register here. Register here to take part if you're planning to export. This webinar runs on February 26 (1.45pm), and again on March 2 (1.45pm).

 

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Draft data adequacy decisions pave the way for continued free flow of data between the EU and the UK

Published 22nd February 2021

The UK government has welcomed the European Commission's draft data adequacy decision which recognises the UK's high data protections standards and set out that the UK's standards are ‘adequate'.

Positive data adequacy decisions under both the EU General Data Protection Regulation (GDPR) and the Law Enforcement Directive (LED) would allow for personal data to continue to flow freely from the European Union (EU) and wider European Economic Area (EEA) to the UK.

The UK now urges the EU to fulfil its declared commitment to complete the technical approval process swiftly, so that we have final data adequacy decisions as soon as possible. This will provide certainty for businesses. The ‘bridging mechanism' will remain in place until June 30 or until the adequacy decisions come into effect, whichever is sooner.
 

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Moving Goods

Published 22nd February 2021

UPDATED: The Goods Vehicle Movement Service: The Goods Vehicle Movement Service is for traders, hauliers and carriers who use a UK Port.

• Guidance for hauliers has been updated here.
• Guidance on registering for the Goods Vehicle Movement Service has been updated with new information about who should register for the service. For more information, click here.
• Get a goods movement reference: Information about what you need to do to get a goods movement reference has been updated. For more information, click here.
• Check if a goods movement reference is valid: Information about hauliers moving goods from the EU to GB has been updated. For more information, click here.

UPDATED: European Conference of Ministers of Transport (ECMT) international road haulage permits: Guidance on permits to travel to or through ECMT member countries has been updated. Information about applying for short-term permits has been updated, you can now apply for there for the rest of 2021. For more information, click here .

UPDATED: HMRC newsletter to help traders avoid some problems they may encounter when moving goods under transit: The most recent HMRC newsletter, has been updated with information on ‘French ports with the ‘smart border' system'. For more information, and to view recent editions of the newsletter, click here.

UPDATED: List of customs agents and fast parcel operators: The list of agents and operators who can help submit customs declarations has been updated. For more information, click here.
 

 

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NEW £20 million SME Brexit Support Fund  

Published 15th February 2021

The new £20 million SME Brexit Support Fund offers support to help small businesses adjust to new customs procedures, rules of origin, and VAT rules when trading with the EU.

SMEs who trade only with the EU, and are therefore new to importing and exporting processes, can apply for grants of up to £2,000, to pay for practical support including training and professional advice to ensure they can continue trading effectively with the EU.

You can use the grant for training on:

• how to complete customs declarations
• how to manage customs processes and use customs software and systems specific import and export related
  
• aspects including VAT, excise and rules of origin

It can be used to help you get professional advice so your business can meet its customs, excise, import VAT or safety and security declaration requirements.

Your business may be eligible if you have up to 500 employees, and no more than £100 million annual turnover.

Applications for the SME Brexit Support Fund will open soon. For more information on how you can use the grant, who can apply and how to apply, click here.

 

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Importing and Exporting

Published 15th February 2021

NEW: Step-by-Step guides to importing and exporting goods between Great Britain and the EU: There are new rules for importing and exporting goods between Great Britain and countries in the EU. Whether you're completing customs declarations yourself or have an intermediary to do it for you, these guides will take you through each step and set out your options.

• Import goods into the UK: step by step: How to bring goods into the UK from any country, including how much tax and duty you'll need to pay and whether you need to get a licence or certificate.
• Export goods from the UK: step by step: How to move goods from the UK to international destinations, including the EU.

NEW: DEFRA's Trader showcase sites for the latest information on exporting and moving goods from GB to the EU and NI: DEFRA's Showcase sites are a one-stop-shop of useful information and documents for traders who export live animals or animal products.

• Moving goods from Great Britain to Northern Ireland
• Exporting goods from Great Britain to the European Union

UPDATED: Importing from and re-exporting union goods to the EU Resources such as trader support packs and flowcharts, have been updated to include a new ‘Importing and re-exporting union goods to the EU - Flowchart'. For more information, click here.

UPDATED: Report goods arriving at a UK port on a commercial vessel: Guidance for the ship's master or ship's agent of commercial vessels on reporting goods arriving in at a UK port, has been updated with information about ‘an account of stores held on board'. For more information, click here.

UPDATED: List of customs agents and fast parcel operators: The list of agents and operators who can help submit customs declarations has been updated. For more information, click here.
 

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Tariffs: Developing the UK's duty suspension application process 

Published 10th February 2021

UK government are seeking views on the process for how businesses can make an application for tariff duty suspensions. These suspensions will apply to goods imported into the UK. To give your opinion in the open consultation click here.

They particularly want to know about:

• the EU suspension application process
• how the UK's independent suspension application process should look
• the timescales for application window cycles, including processing, objecting to and implementing suspension applications
• any other relevant feedback

Tariff suspensions  

The UK's temporary duty tariff suspensions and quotas regime allows the duty-free importation into the UK of certain goods used in domestic production. Tariff suspensions allow unlimited quantities to be imported into the UK, whereas Autonomous Tariff Quotas (ATQs) allow limited quantities to be imported.

For 2021, a number of EU existing measures have been retained, although they will be subject to internal review in 2021 to determine whether they are working for the UK domestic economy.

There are certain parts which we believe the duty tariff suspension would apply to. This includes some products originating from China - forks, derailleurs, frames and handlebars, as well as some products from any country - pedals, seat posts and stems.

The EU currently have an "application process" twice a year, whereby new products can be added to this list. It is likely that the UK may also implement a similar procedure.

 

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Government Launches State Aid Consultation

Published 5th February 2021

The Department for Business, Energy and Industrial Strategy (BEIS) has launched a new consultation on the new state aid regime following the end of the transition period. State aid rules determine the permitted financial assistance which can be given by the Government to businesses. They intend to prevent the potential to distort markets and competition. Business rates reliefs are applicable to existing state aid rules and limitations.

BEIS: Business Secretary sets out new subsidies system that works for the UK
 

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EU Exit updates for e-bikes

Published 4th February 2021

See the new ACT section for all relevant EU Exit updates, advice and resources relevant to e-bikes.

Click here to access.

 

Published 2nd February 2021

The Government's Department for Business, Energy and Industrial Strategy (BEIS) has created 18 video explainers.

Register by clicking here and access videos on the following topics:

• Businesses who import and export
• Businesses and Trade Agreements
• Placing and selling goods on the market
  
• Businesses hiring overseas staff
• Moving goods into, out of, or through Northern Ireland
  
• Businesses operating online
• Trade tariffs
  
• Rules of Origin
  
• Recognition of professional qualifications
• Businesses working with Intellectual Property
  
• REACH chemical Regulations
• Businesses shipping waste between GB and EU
  
• Businesses providing services to EU markets
• Businesses involved in the Horizon 2020 Funding Service
  
• Businesses preparing and auditing financial accounts
  
• Businesses engaged in emissions trading
  
• Chemical regulations
  
• Businesses involved with data
  

 

 

• Export goods from the UK: step by step guide

 

Exporting goods from GB to the EU via the Short Straits

 

2. Trading with the EU

• How to continue to trade at the end of the end of transition period (Border and Protocol Delivery Group)
• Trader responsibilities when using an intermediary (HMRC)
• Movement of goods through non-short straits roll on/roll off locations in North Europe (Border and Protocol Delivery Group)
• Register for video explainers on 18 topics including importing and exporting, trade, data, and audit and accounting (BEIS)
• Watch videos about trading with the EU, including exports and imports, customs, commodity codes and controlled goods
• Regulating chemicals after the UK transition period (DEFRA)
• Border Event: Landbridge and Short Straits (Border and Protocol Delivery Group)
• Border Event: Direct Maritime Routes (Border and Protocol Delivery Group)

 

Moving goods via ports in the Netherlands and Belgium

 

 

3. Webinars for moving goods between Northern Ireland and Great Britain

 

 

• Sign up for the Trader Support Service where you can sign up for webinars about moving goods between GB and Northern Ireland

 

4. Webinars for businesses in Scotland

You can access these business-readiness webinars for Scotland on demand:

• Border Operating Model
• Points-Based Immigration System & EU Settlement Scheme

5. Webinars for businesses in Wales

• Welsh Secretary discusses post-EU immigration
• Welsh firms Invited to EU Transition discussion with UK Government

 

6. Cross-border trade forum

To ask specific questions about your industry, visit the cross-border trade forum.

New Brexit checklist for retailers 

Published 28th January

Still got questions about trading in Europe as a result of the UK leaving the EU?

The Government has created a new checklist to guide retailers through what they need to do here.

A series of on-demand web videos have also been created to ensure business owners understand the new rules and take the required action. Content includes:

• Businesses and Trade Agreements (not yet available)
  
• Businesses Engaged in Emissions Trading
  
• Businesses Hiring Overseas Staff
  
• Businesses Involved in the Horizon 2020 Funding Service
  
• Businesses Involved with Data
  
• Businesses Operating Online
  
• Businesses Preparing and Auditing Financial Accounts
  
• Businesses who Import and Export
  
• Businesses Providing Services to EU Markets
  
• Businesses Shipping Waste between GB and EU
  
• Businesses Working with Intellectual Property
  
• Chemical Regulations
  
• Moving Goods into, out of, or through Northern Ireland
  
• Placing and Selling Goods on the Market
  
• REACH Chemical Regulations
  
• Recognition of Professional Qualifications
  
• Rules of Origin
  
• Trade Tariffs

The videos are available here.

There is also a further support for businesses moving goods between Great Britain and Northern Ireland here. There is also free training available, to help businesses continue to trade smoothly here.

 

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Trading with Northern Ireland

Published 25th January

There is specific legislation for those who trade in Northern Ireland, which this government page helps to explain.

We advise registering with the Trader Support Scheme here.

You should also read the Command Paper on the Northern Ireland Protocol, which provides further information on movement of goods into, out of and through Northern Ireland, following the Chancellor of the Duchy of Lancaster's Withdrawal Agreement update.

 

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EU Exit Deal 

Published 23rd December

A UK-EU deal has been agreed between Prime Minister Boris Johnson MP and European Commission President Ursula Von der Leyen. Parliament will now be recalled from its Christmas break to debate and vote on whether to implement the deal on 30th December, while the proposal will be put to the European Council and Parliament.

Boris Johnson MP has said via a press conference that this ‘Canada-style' free trade agreement will protect jobs and allow transactions without tariffs or quotas. The UK will leave the customs union, single market and jurisdiction of the European Court of Justice.

A press conference with Ursula Von der Leyen and Chief Negotiator Michel Barnier highlighted that EU rules and standards will be respected and independent arbitration will determine whether tariffs and other measures can be applied if fair competition is distorted by relevant regulations by either the EU or the UK. The EU and UK will continue to cooperate on international issues, including climate change, energy and transport. There will be a review after four years to ensure compliance with the deal.

This deal would take effect after the end of the transition period on 31st December and prevent both the UK and EU imposing widespread import taxes on each other's goods by defaulting to World Trade Organisation rules.

 

Business Services

The Agreement includes provisions to support trade in services (including financial services and legal services). This will provide many UK service suppliers with legal guarantees that they will not face barriers to trade when selling into the EU and will support the mobility of UK professionals who will continue to do business across the EU.

 

Digital Trade

These provisions will promote trade in digital services and facilitate new forms of trade in goods and services. The provision helps to facilitate the cross-border flow of data by prohibiting requirements to store or process data in a certain location. This prevents the imposition of costly requirements for British businesses.

 

Electric cars

UK manufacturers will eventually face tariffs when exporting electric cars to the EU unless more than 45 per cent of the components used come from European countries. There will be a six-year transition period before the rules come into force.

 

Motor Vehicles

The Annex confirms that both the UK and the EU will mutually recognise approvals based on UN regulations. It establishes dedicated cooperation mechanisms to address regulatory barriers and provides for information exchange to support activities including market surveillance.

Moving Goods

The United Kingdom and the European Union have agreed 100% tariff liberalisation. This means that there will be no tariffs or quotas on the movement of goods between the UK and the EU, where goods meet the relevant Rules of Origin.

 

Mutual Recognition of Professional Qualifications

The Agreement clarifies that the provisions on professional qualifications are without prejudice to alternative arrangements that the UK may agree with the EU, allowing for improved mechanisms to be agreed in future. Agreements will be negotiated on a profession-by-profession basis.

Northern Ireland

Northern Ireland after the end of the transition period is not a specific matter for the Brexit deal and the country will be able to choose what happens after 2024 through a vote in the Northern Irish Assembly on the Protocol negotiated by Michael Gove.

Small and Medium-sized Enterprises (SMEs)

The Agreement includes commitments to provide SMEs with clear and accessible online information about the Agreement, helping them to trade and do business in the UK and the EU. This covers customs procedures, intellectual property rights, and public procurement. The Agreement commits the UK and the EU to provide for a searchable online database, on measures such as customs duties, taxes and rules of origin.

Trade

A key element of the trade deal is that it does not include any tariffs on exports to the EU.
Negotiators agreed automatic tariff-free access to the EU's single market, and a zero-quota agreement means there is no limit on the quantity of any type of goods that can be traded.

 

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EU Negotiations Update

Published 22nd December

The EU and UK have failed to reach a breakthrough in their negotiations meaning they have missed the latest European parliament's deadline. Agreements surrounding fisheries and level playing field remain areas of contention. The talks are expected to continue but the European Parliament previously said talks needed to have ended on 20th December for it to ratify a deal by 31st December. However, sources suggest that in the event that a deal is reached with the EU, Parliament will be recalled on 30th December to ratify it before the end of the transition period at midnight the following day.

 

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Government Officials have indicated they will share more information in the coming days subject to further discussions in the joint committee.

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UK-EU Deal Progress

Published 24th November

Despite progress being made, negotiations have currently been paused due to several members of the core negotiations team testing positive for Covid-19. Negotiations are expected to continue via video link on Friday and over the weekend, whilst the UK and EU both work out when in-person discussions will be able to resume. The President of the EU Commission has however confirmed that progress has been made in important areas for post EU-Exit trade. This includes progress on state aid rules limiting government subsidies for industry. The three main areas of current discussion surround; fishing rights, competition rules and how a deal would be enforced. It is now expected that if a final deal is reached, it will be announced in the coming week subject to being able to meet in person.

 

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EU-Exit Readiness Briefing Published

Published 11th November

IRC member ACS has now updated its EU Exit Readiness briefing to prepare for the end of the transition period on 31st December 2020. The briefing aims to help retailers understand how their businesses and the supply chain may be affected when the UK leaves the EU. The briefing involves three core themes with suggested considerations for retailers to make; trading environment, workforce & people and regulations. It also explains the latest developments and Government thinking surrounding the end of the transition, including the Governments’ reasonable worst-case scenario and guidance on how labelling of products sold in store is expected to change. ACS has consulted closely with the Department for Business, Energy and Industrial Strategy and other relevant government departments to produce the briefing.

ACS: ACS Launches EU Exit Readiness Briefing for Local Shops

 

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UK-EU Trade Talks Resume

Published 11th November

Trade talks have resumed between the UK and EU in London. The main points of discussion surround competition issues and fisheries. The Prime Minister has said that the ‘outlines' of an agreement are there and there is a ‘deal to be done'. It is understood that if no agreement is reached by the end of the transition period, trade between the UK and EU will default to World Trade Organization (WTO) rules - with tariffs set to be introduced on many imports and exports, this is expected to increase costs to businesses and consumers.

 

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Trade Talks Extended

Published 27th October

The chief negotiators for the UK and EU have resumed post-Brexit trade talks. Michel Barnier arrived in the UK on Thursday and will remain in London until Wednesday, before talks continue in Brussels from Thursday until the end of the month. This follows the Prime Minister stalling talks after stating the EU needed to fundamentally change its position. Both the UK and EU are thought to be working on legal texts for a deal, but issues of disagreement remain on state aid competition rules and fishing quotas. The transition period is due to end on 31 December. If a deal is not reached, the UK would then trade with the EU on World Trade Organisation rules from 1 January 2021.

BBC: Post-Brexit Trade Talks Extended

 

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Changes for businesses and citizens 

Published 26th October

The UK is leaving the EU single market and customs union, and the end of the transition period will affect citizens, businesses, as well as travel to and from the EU.

Watch the video to find out what 2021 will mean for you.

You need to take action now if you're:

• importing goods into the UK
• exporting goods from the UK
• travelling to the EU
• living and working in the EU
• staying in the UK if you're an EU citizen

Get the complete list of what you need to do for you, your business and your family.

 

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Government EU-Exit Preparation Webinars

Published 14th October 

The Government is urging businesses to actively prepare for the end of the transition period and is running a series of webinars which members can attend. A retail specific webinar will take place on Wednesday 14 October at 11am and you can register for it here. Run by the Department for Business, Energy and Industrial Strategy, the webinar will provide information on the actions your business should take to prepare for the new rules coming into effect from January 2021 including; checking goods compliance, tariffs, trading with countries outside the EU and hiring staff from outside the UK. Businesses can also familiarise themselves with the actions they will need to take, by visiting gov.uk/transition and using the checker tool.

 

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Updated Border Operating Model Published

Published 14th October  

The updated Border Operating Model (BOM has been published following its first release in July. The BOM aims to provide clarity and certainty for businesses ahead of the end of the transition period. It also details information on how the GB-EU border will work, being an essential part of preparations that need to be carried out by businesses operating in a post-EU environment. The key additions and changes include; further detail on delayed customs declarations and the requirements of Entry in Declarants Records (EIDR), further details on the checks applying to goods and how freight will be checked before crossing the border. The BOM will be a live document going forward and will be updated by the Government when developments occur.

 

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Reasonable Worst-Case Scenario Planning

Published 1st October

The Chancellor of the Duchy Lancaster made a statement in the House of Commons outlining the reasonable worst-case scenario (RWCS) of EU-Exit. The RWCS works onan estimate that 20-40% of small- and medium-sized businesses, would be ready for the strict application of new EU requirements at the end of the transition. The scenario predicts only between 30-60% of HGV's arriving at the border will be prepared to comply with new formalities and there could be a reduction of 60-80% of short straight crossings; causing significant disruptions to trade and the flow of goods. The Governments Border Operating Model seeks to curb these predicted potential difficulties along with large investment in new infrastructures and technologies. The Government is urging businesses of all sizes, who trade with Europe, to familiarise themselves with new customs procedures, highlighting HMRC as a valuable business support.

Cabinet Office: Preparations for the end of the Transition Period

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This Weeks EU-UK Negotiations

Published 1st October

Round 9 of the EU-UK future relationship negotiations are taking place this week led by Michael Gove. On Monday, Gove met with the European Commission's Maros Sefcovic who said the UK's negotiating position is still "far apart from what the EU can accept". The formal trade talks resume today (Tuesday 29 September), and discussion of the UK government's Internal Market Bill, which would override agreements made on the movement of goods between Great Britain and Northern Ireland is expected to be central to this round of talks.

 

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UK Internal Market Bill

Published 15th September

The UK Internal Market Bill is passing through Parliament this week. The Bill includes a section on the movement and presentation of goods after the transition period ends. The bill essentially aims to ensure that goods sold in one part of the UK can be sold in another after 31 December 2020 through the implementation of two key principles for goods: mutual recognition and non-discrimination. The Bill details how goods should be labelled, named and described on the packaging as well as any changes to the production. It also legislates that devolved administrations cannot introduce legislation which puts goods directly at a disadvantage (for example, makes it more difficult or less attractive to buy or sell goods) with other goods from another part of the UK. The Bill provides little detail about the movement of goods between Great Britain and Northern Ireland.

 

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EU-Exit: Scotland

Published 1st September

The Scottish Government re-asserted the belief that the best future for Scotland is to be an independent country and member of the European Union. Scotland will take forward the UK Withdrawal from the European Union (Continuity) (Scotland) Bill to replace powers we will lose at the end of the transition period. The Scottish Government also highlighted the grounds for a second independence referendum by the end of this Parliament and has committed to publishing a draft bill for an independence referendum within the next term of Parliament.