smmt brexit webinar · art. 50 (3) teu – council must “unanimously decide” to extend. the...
TRANSCRIPT
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
Lloyd Mulkerrins, Policy Manager, SMMTSMMT Brexit Webinar
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SMMT Brexit Readiness Programme
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SMMT Brexit Readiness Programme
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THE BREXIT DEAL
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A NEW BREXIT DEAL?
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A NEW BREXIT DEAL?
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A NEW BREXIT PROPOSAL
“A fair and reasonable compromise”?
• NI aligned with EU agricultural and industrial products regulation
• NI leaves the EU customs union = checks required on the island of Ireland and in the Irish Sea (for agricultural and industrial products regulation)
• After four years, NI to choose between the two border arrangement or aligning with GB (potential consequence is formalising the return of a hard border on the island of Ireland
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NEW PROPOSALS - REACTION
Reactions
• DUP
• NI Business Community
• EU and Dublin
• ERG
• Labour Frontbench
• Labour Backbench
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WHERE DOES THAT LEAVE US?
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EUROPEAN UNION (WITHDRAWAL) (NO. 2) ACT 2019
• Places a duty on government to request an extension until 31st January if, by 19th October:
• No new deal has been agreed; and
• Parliament has not consented to leaving without a deal
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HOW ABOUT THE OPPOSITION PARTIES?• It’s a waiting game….
• Opposition parties seemed certain of General Election once extension secured however…..
• …..views are now splintering on Second Referendum
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OPERATING ASSUMPTION
1. No new deal will be agreed with the EU.
2. In the unlikely event that a deal is agreed, it will be less ambitious than the current deal and will not be ratified by Parliament.
3. Article 50 extension will be requested, secured and no-deal (on 31 October) averted.
4. Early election this year (poss. 28th November).
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WILL AN EXTENSION BE GRANTED? HOW LONG FOR?
• Request = 31st January 2020
• Alternatives:
• 31 March 2020• 30 June 2020• 31 December 2020
Art. 50 (3) TEU – Council must “unanimously decide” to extend
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BACK TO THE POLLS
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LATEST POLLING
Source: Politico
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AUTOMOTIVE PRIORITIES
Government must agree the Withdrawal Agreement with the EU as soon as possible, rule out a ‘no-deal’ Brexit and secure the transition
Remain in the customs union to guarantee the free flow of goods across the border.
Secure the benefits of single market, maintain regulatory harmonisation and avoid non-tariff barriers.
Retain the ability to access talent freely and from across the EU.
Securing existing preferential trading arrangements with third country markets.
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Customs in a no-deal scenario
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No-Deal = No UK Membership of the EU Single Market or Customs Union
Duties Friction
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Customs Declarations
1.
2.
Complete the Customs Declarations yourself
Appoint a customs broker to complete
them on your behalf
Or
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Customs Declarations
1. INCOTERMS and Contracts
2. Classification
3. Valuation
4. Origin
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Transitional Simplified Procedures (TSP)On 4 February HMRC announced the introduction of TSP
Aim: to make importing easier and reduce the upfront administrative burden on EU to UK trade
Time: In place for at least 15 months (will be reviewed 3 months in and not removed without a years notice)
Criteria to register for TSP:
• Established in the UK• Conduct EU to UK trade• Have an EORI number
On 15 October HMRC announced that they have automatically enrolled 95,000 businesses for TSP
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It’s Complicated
Government have made £16 million available to help businesses train staff in making customs declarations
Applications close on 31 January 2020
More than 3000 customs brokers have been trained as part of an £8 million investment by government in December 2018
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UK Points of Entry/Exit
Addition friction will likely impact on key points of entry/exit in the UK.
Operation Yellowhammer highlighted:
• Up to 85% of lorries using the main Channel crossings may not be ready for French customs
• Could face delays of up to two and a half days• Significant disruption could last up to three months
before the flow of traffic improves to 50-70% of current rate
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UK Points of Entry/Exit O
pera
tion
Broc
k Operation Brock
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EU Points of Entry/Exit France• French customs has implemented a Smart border project• Pilots for the experienced traders have gone well• Based on the early completion of Customs procedures
Netherlands• 750 new Dutch customs officials. Import declarations
processed by the Dutch authorities could increase by 18%• 35,000 companies in the Netherlands alone that do
business with the UK and no country outside the EU• 10% of Rotterdam traffic comes to the UK
Belgium• New infrastructure and recruited 900 new customs officials• 1/5 traders may not be ready• Traders could see delays
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Summary of Actions
What Businesses need to do
VAT numberEORI UK and EUCustoms Declarations and TSPINCOTERMS and Contracts ClassificationValuationOrigin
What government has done
Awareness CampaignAuto-enrolment of EORI numbersAuto-enrolment of TSP UK and EU Pop Up sites Helpline – 0300 3301 331
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Questions and Answers
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Slides emailed to participants after this session.
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