GB-EU Border Checks (UK & EU from 1st Jan 2021)

On 14 July, the EU updated and reissued it’s 1 Jan 2021 Readiness Notice on Customs (dated 22 Nov 2019) and combined the content with the updated and replaced Readiness Notices on Preferential Rules of Origin (dated 4 June 2018) and Customs and Indirect Taxation (dated 30 Jan 2018), here.

The day before, on 13 July, the UK published its Border Operating Model, here. I Blog posted about it at the time.

The Institute for Government in the UK has published a handy explainer – here.

GB to EU trade – From 1 Jan 2021

(1) Full customs declarations (UK export declarations and EU import declarations) will be required.

(2) If applicable, tariffs and import VAT will be payable at the time of import, unless traders are eligible to defer payments.

(3) UK exit summary Safety and Security declaration (or combined fiscal and safety and security declaration) and EU entry summary Safety and Security declaration will be needed.  

(4) Checks according to international conventions (e.g. CITES) will take place.

(5) Full SPS checks will be imposed, including a requirement for UK Export Health Certificates.

(6) Additional requirements will apply to the export of other controlled goods, in line with EU and member state rules.

(7) Excise goods will be subject to the rules applied by the importing EU member state.

EU to GB trade –

From 1 Jan 2021

(1) Full customs declarations will be required for controlled goods (e.g. excise goods like tobacco and alcohol).

(2) For standard goods (most goods), simplified customs requirements will be in place from January. Traders will have to keep sufficient records of their imports, but will be able to defer full customs declarations until 1 July 2021 (although they may submit customs declarations before if they wish).

(3) If applicable, tariffs will be payable, but it will be possible to defer payment until customs declarations are made (no later than July 2021). If applicable, import VAT will be payable, although many traders will be able to defer payment.

(4) An EU exit summary Safety and Security declaration will be needed.

(5) Checks according to international conventions (e.g. CITES) will take place.

(6) Imports of high-risk live animal and plants (and animal and plant products) must be pre-notified to the UK authorities via IPAFFS, have correct health documentation and may be subject to checks. Physical checks will be carried out at the point of destination or other approved premises.

(7) Import licenses and other requirements will apply to the import of some high-risk goods.

(8) Businesses importing excise goods will need to pay GB excise duties using the CHIEF or CDS systems (although excise duties are already payable on excisable imports from the EU).

From April 2021

Imports of all products of animal origin, regulated plants and plant products will require pre-notification to the UK authorities via IPAFFS and must have correct health documentation. Necessary physical checks will take place at the point of destination or other approved premises.

From July 2021

(1) Full customs declarations will need to be made at the time of import for all goods. Some traders may be eligible for simplified declaration procedures.

(2) Any applicable tariffs will be payable on import, although many traders are eligible to defer payments.

(3) A UK entry summary Safety and Security declaration will be needed.  

(4) Products subject to SPS checks will need to transit through a designated Border Control Post equipped to handle the goods in question and be subject to checks. Goods will subject to an increased rate of physical checks.

Meeting Climate Change Requirements (UK from 1 Jan 2021)

On 7 July, the EU revised and updated its 1 Jan 2021 Readiness Notice on the EUETS (EU carbon trading) (previously dated 19 Dec 2018). This updated Notice is here.

Amongst the list of instructions are :

(1) Operators of stationary installations in the UK and aircraft operators where the UK is the administering EU member state – to continue holding emission allowances after 30 April 2021 – must open a trading account in the Union Registry administered by an EU Member State and move their assets to this account.

(2) They must also – ensure that their annual emission reports are verified by verifiers established in the EU and accredited by the national accreditation body of an EU Member State.

Please note the Notice also sets out specific restrictions that will apply in Northern Ireland from 1 Jan 2021.

As a result, the UK has updated (19th August) its pre-existing instructions on meeting climate change requirements (covering emissions trading, ecodesign and energy labelling) previously issued on 12 October 2018. Note: the EU does not have 1 Jan 2021 Readiness Notices on ecodesign or energy labelling (only on EMAS and the EU Ecolabel).

The UK instructions are here. I Blog posted about these instructions at the time in 2018.

Key points : (taking account of the EU Readiness Notice)

(1) UK stationary installation operators and aircraft operators will continue to have access to Operator Holding Accounts and Aircraft Operator Holding Accounts administered by the UK for 2020 compliance obligations, up to and including 30 April 2021. Access to accounts after this date may no longer be possible.

Where applicable, operators should confirm with their traders that delivery of allowances will be possible from 1 January 2021 to ensure sufficient allowances are available to enable compliance with surrender obligations for 2020 emissions.

(2) Holders of Trading Accounts, Person Holding Accounts, Person Accounts in National Kyoto Protocol Registry and Former Operator Holding Accounts in the UK section of the Union Registry should plan for a loss of registry access from 1 January 2021.

(3) Free allowances will need to be allocated by the National Administrator on or before 31 December 2020 (the end of the transition period) subject to any changes being agreed by the European Commission in a Commission decision meeting.

(4) The deadlines for UK operators participating in the EU ETS during the transition period are:

• 31 March 2021 – submit Verified Annual Emissions Report for 2020 emissions

• 30 April 2021 – surrender equivalent allowances to 2020 verified emissions

NOTE : The temporary suspension by the European Commission on the processes relating to the UK registry was lifted on 3 February 2020 and the UK commenced the process of issuing 2019 and 2020 free allocation, as well as resuming auctions. The lifting of the suspension also allowed UK stationary installation operators and aircraft operators to regain the ability to use their entitlement in the Union Registry to exchange international credits for EU ETS allowances.

(5) Account holders who use their accounts to hold and trade Certified Emission Reductions and Emission Reduction Units will continue to be able to access their accounts within the UK’s Kyoto Protocol National Registry until 1 January 2021. As of 1 January 2021 (the day following the end of the transition period), account holders will no longer have access to these accounts.

The UK government is procuring a new system to enable account holders to hold and trade Certified Emission Reductions and Emission Reduction Units, which we expect to be operational in Spring 2021. Businesses with accounts in the Kyoto Protocol National Registry should consider taking action to manage the risks created by a short gap in service before the new system is implemented. For example, affected business could consider opening an account in another country’s registry to hold and trade Certified Emission Reductions and Emission Reduction Units during this period.

EU PRODUCT DATABASE (this is not an EU Readiness Notice, so this UK information derives directly)

(1) In terms of the EU product database:

• all consumers will still have access to the ‘open’ section of the database

• however, the UK’s Market Surveillance Authorities will no longer have access to the ‘closed’ compliance section of the database.

There will be changes for UK and EU suppliers regarding the EU product database. UK and EU suppliers placing relevant energy-using products:

• on the EU market will have to enter relevant information into the database

• on the UK market will not be required, under domestic law, to enter relevant information into the database, including for those products placed on the market between 1 August 2017 and 1 January 2019 after 1 January 2021.

UK and EU suppliers must ensure that relevant energy-using products:

• placed on the UK market comply with minimum UK Ecodesign and Energy Labelling standards

• placed on the EU market comply with minimum EU Ecodesign and Energy Labelling standards

UK and EU retailers must ensure that relevant energy-using products:

• placed on the UK market comply with minimum UK Energy Labelling standards

• placed on the EU market comply with minimum EU Energy Labelling standards

RE standards – All EU ecodesign and energy labelling requirements which enter into force and apply before 31 December 2020 will have effect in the UK. Further legislation is being prepared to ensure that all of these requirements continue to function in the UK from 1 January 2021.

Please clarify any gaps e.g. verification of annual emission reports, and the specifics applying in Northern Ireland, with the UK government department BEIS.

EU-UK Readiness post 1st Jan 2021 (EU 1st Jan 2021)

The European Commission published a Communication “Getting Ready for Changes. Communication on readiness at the end of the transition period between the European Union and the United Kingdom” today 9th July. This document is here.

The Communication is posted on the European Commission’s End of Transition Period Readiness Page here, where other notices, with various publication dates, are posted.

Key points in the 35 page Communication (this is not a full list):

(1) As of 1 January 2021, the European Union and the United Kingdom will be two separate regulatory and legal spaces.

(2) As of 1 January 2021, licences issued to railway undertakings by the United Kingdom will no longer be valid in the European Union, and certificates or licences issued in the United Kingdom to train drivers will no longer be valid for the operation of locomotives and trains on the EU’s railway system.

[I Blog posted recently specifically re Railways]

(3) As of 1 January 2021, air carriers holding operating licences granted by the UK licensing authority for the commercial carrying by air of passengers, mail and/or cargo, will no longer be able to provide air transport services within the European Union. EU air carriers and holders of aviation safety certificates will need to ensure, and uphold compliance with European Union requirements, including airlines’ requirements on principal place of business and EU majority ownership and control, as well as the European Union aviation safety acquis.

(4) As of 1 January 2021, road transport operators that are established in the United Kingdom will no longer hold a European Community licence. In the absence of a reciprocal access agreement, the limited quotas already available under the mechanism of the European Conference of Ministers of Transport (ECMT) will be available for EU operators to conduct journeys to the United Kingdom, and for UK operators to conduct journeys to the EU.

[I Blog posted in 2019 about this topic]

(5) As of 1 January 2021, EU REACH registrations held by manufacturers and producers established in the United Kingdom will no longer be valid in the European Union. These entities will have to ensure that their substances are registered with a manufacturer or importer in the European Union or appoint an ‘Only Representative’ in the European Union as registrant for the substance.

[A UK REACH will operate in the UK, I Blog posted about this in 2019]

(6) As of 1 January 2021, downstream users in the EU will have to check whether chemical substances they use are registered by a registrant established in the European Union. Where this is not the case, they should:

* check whether the UK registrant they deal with plans to appoint an ‘Only Representative’ in the European Union; or

* register the substance in the capacity of importer.

Re Northern Ireland specifics (this is not a full list)

(1) Checks and controls will take place on goods entering Northern Ireland from the rest of the United Kingdom, for example on food products and live animals to ensure adherence to sanitary and phytosanitary (‘SPS’) requirements. Goods leaving Northern Ireland to enter the EU must comply with EU standards and rules.

(2) EU customs duties will apply to goods entering Northern Ireland unless the Joint Committee (set up under the Ireland/Northern Ireland Protocol) sets out a framework of conditions under which these goods are considered not to be at risk of entering the EU’s Single Market. Based on such a framework, no customs duties will be payable if it can be demonstrated that goods entering Northern Ireland from the rest of the UK are not at risk of entering the EU’s Single Market.

EU Readiness Notices (EU Brexit)

The UK is exiting the transition period on 31st December.

The European Commission is reviewing – and where necessary updating – the over 100 sector-specific stakeholder preparedness notices it published during the Article 50 negotiations with the UK.

The documents (updated so far) are published as ‘notices for readiness’ for 1st January 2021 –

(1) Air Transport – here

(2) Aviation safety – here

(3) Consumer protection and passenger rights – here

(4) Cosmetic products – here

(5) Animal feed – here

(6) Food law – here

(7) Industrial products – here

(8) Medicinal products for human use and veterinary medical products – here

(9) Movements of live animals – here

(10) Online sale of goods with subsequent parcel delivery – here

(11) Plant health – here

The transition period ends on 31st December, unless it is extended by agreement.

New Website “EU Future Dealings with UK” (EU Brexit)

Transition Period ends 1st January 2021

The EU has set up a new gateway to information on its dealings with the UK – here.

If there is no ratified agreement establishing a future trade deal between the EU and the UK at the end of the transition period, then the United Kingdom will trade with the EU on World Trade Organization terms as of 1 January 2021.

Even if a trade agreement is concluded, it will establish a very different relationship in terms of market access than participating in the EU’s Internal Market and the EU’s Customs Union.

Therefore, the end of the transition period means significant changes in the regulatory relationship between the UK and the EU.

Since Autumn 2017, the EU has Stakeholder Preparedness Notices which set out the instructions for No Deal (in the Article 50 phase). I Blog posted about these a number of times in 2018.

The EU now (in this new gateway) has a new page (from this new gateway) with access to the EU’s No Deal Preparations and the EU’s Stakeholder Preparedness Notices (which are being updated) – here.

Northern Ireland

Please remember (under the terms of the Withdrawal Agreement) Northern Ireland will remain aligned to some EU Law.

Northern Ireland will remain aligned to a limited set of rules related to the EU’s Single Market in order to avoid a hard border: legislation on goods (including Environment), sanitary rules for veterinary controls (“SPS rules”), rules on agricultural production/marketing, VAT and excise in respect of goods, and state aid rules.

The list of rules is in an Annex to the Ireland/Northern Ireland Protocol. It’s not easy to find this list. I hope in the future both the EU and the UK set up specific gateways for Northern Ireland.

6th Brexit Preparedness (EU Exit)

Exit day is 31st October (unless a later date is sought by the UK and agreed by the EU)

Yesterday (3rd September) the EU issued its 6th Brexit Preparedness Package. Here.

This contains an updated Brexit Checklist here.

Please read this September 2019 Brexit Preparedness Checklist carefully.

Core actions to be checked are set out in boxes.

Please note the unilateral extension of some timelines in the EU contingency measures here.

Imported Clothing Labelling (UK Brexit)

Exit day is 31st October.

HMG has yesterday issued two instructions confirming the no change situation re shoes and textiles labelling on imports, bar the manufacturer’s authorised agent must be based in the UK (not the EU).

Footwear – here.

Textiles – here.

Exports to the EU will need to comply with EU rules for imports from third countries.

EU Brexit Preparedness Notices – here.

EU Brexit Customs and Taxation and related information – here.

Customs Instructions (EU Brexit)

Exit day is 31st October.

The EU has now published a new online access point for Customs instructions.

Here.

This includes a Checklist for Traders.

There are also Factsheets and Contact Points.

Note : this extends further than Customs alone. Please read.

EU Brexit Preparedness (EU Brexit)

UK Exit day is 31st October 2019

Please read this Blog post carefully, if you have any questions or uncertainties as to your actions, please email to arrange a telecon.

Today, 12th June, the EU Commission published its fifth Brexit Preparedness Communication – it is a review of the state of the EU Brexit preparedness and contingency measures, and is important for activities in the EU and in the UK. The document is here.

Key elements :

(1) As stated in the fourth Brexit Preparedness Communication of 10 April 2019, the Commission is ready to propose financial support measures (applicable to the E27) to mitigate the impact in the most affected areas and sectors, taking into account the funds that are available and any adjustments on the expenditure and revenue side of the EU budget that might result from a disorderly withdrawal. For more immediate support to affected stakeholders, EU State aid rules offer flexible solutions for national measures. But see Item (4) below.

(2) In this review, the Commission screened all the EU-level measures to assess whether they are still fit for purpose given the extension of the Article 50(3) TEU period. On the basis of this screening, the Commission considers that the legislative and non-legislative Union acts continue to meet their intended objectives. There is therefore no need to amend them on substance. The Commission does not plan any new measures ahead of the new withdrawal date (31st October).

(3) The Commission adopted 16 non-legislative contingency acts under the EU sanitary and phytosanitary legislation in view of the previous withdrawal date of 12 April 2019 on the basis of assurances given by the United Kingdom. These measures are now obsolete due to the extension. However, if the United Kingdom continues to provide the necessary assurances, the measures will be re-adopted to apply as of 1 November 2019.

These acts cover the listing of the United Kingdom and its Crown Dependencies as a third country allowed to export live animals and animal products to the EU; and the approval of new or extended Border Inspection Posts in the EU27 Member States most concerned by UK imports.

They do not cover acts on the recognition of health marks for products of animal origin, heat treated pallets, or fortified flour (UK requests).

(4) In some sectors, companies indicated in March 2019 that they had not had sufficient time to adapt. The Commission strongly encourages stakeholders to take advantage of the extra time until 31 October 2019 to ensure that they have taken all the necessary action to prepare for the United Kingdom’s withdrawal.

They should ensure that the necessary regulatory authorisations are in place, that they have taken the administrative steps for cross-border trade and the necessary action for relocation, corporate reorganisation or contractual adaptations.

In particular, it will not be possible to place on the EU market after Exit day products which do not comply with the necessary requirements and authorisations.

As stated above, the Commission does not plan to adopt any new measure in view of a possible no-deal scenario or to compensate for a failure to prepare by operators.

The Commission considers that the additional time available because of the extension will in principle be sufficient for operators to adapt, so that even in cases where exemptions or derogations are available, they should not be necessary.

(5) EU27 Member States should screen their national contingency measures to ensure that they remain fit for purpose given the extension of the Article 50(3) period. In case of a no-deal withdrawal, the final preparatory measures must apply as of 1 November 2019 at the latest.

(6) Note the specifics on medicinal products, medical devices and chemical substances – page 5 of the document (link above).

(7) In the field of sanitary and phytosanitary controls (SPS), EU27 Member States have set up new Border Inspection Posts (BIPs) or extended existing ones at entry points of imports from the United Kingdom into the EU. As stated above, the non-legislative act approving these BIPs will need to be adopted again given the most recent extension of the Article 50(3) period. In the meantime, EU27 Member States should use the additional time to evaluate the need for any further adjustments to these BIPs to ensure that they are fully functional from the outset.

Furthermore, the Commission maintains regular contacts with the most concerned Member States so that, in a no-deal scenario, a landbridge route between Ireland and the rest of the European Union via the United Kingdom can be implemented swiftly, including support from the necessary IT systems.

(8) The international road haulage measure expiry deadline of 31st Dec 2019 is unaltered.

It is important companies review their supply contracts, and ensure suppliers are Brexit ready.

UK Industrial Goods Export to EU (EU Brexit)

Exit day is 31st October 2019.

The EU issued in February a Q&A document answering questions arising on the specifics of UK Industrial Goods circulation in the European market following Exit. This document is here.

Please examine this document carefully, particularly as respects the point in the circulation when the Third Country regime would apply, and the matter of Technical Dossier transfer (Category D).

Any questions not addressed by this Q&A should be made to the UK BEIS department.

The UK has said it would permit CE marked Goods to circulate in the UK market after Exit day, as far as I can determine, this is not reciprocated by the EU (as respects UKCA marked Goods). If anyone has an update on this, perhaps they would email me it. Thank you.

[the Exit day may change, please continue to follow this Blog]