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.

Rail Transport (UK from 1st January 2021)

Rules change from 1st January 2021 (as a result of Brexit).

The UK Department for Transport issued on 1st July, text applicable to Rail Transport from 1st January 2021. This text is here.

The UK text also refers the reader to the already existing European Commission Notice, updated 28 April, here.

Note the following (this is not an exhaustive list, please read the text behind the links).

Note the deadlines – 1st January 2021 and 1st January 2022. Note the different rules in Northern Ireland.

(1) EU-based operators must apply to the Office of Rail and Road (ORR) for documentation to run services in Britain – the necessary documentation is required by 31 January 2022.

For Northern Ireland, the UK text says “non-UK operators are currently not subject to a time-limited period”. This flows from the Ireland/Northern Ireland Protocol of the EU-UK Withdrawal Agreement.

(2) The UK text says “It is likely that certificates and licences issued in the UK will not be valid in the EU from 1 January 2021”.

If this is the case, operators of cross-border services will be subject to the recognition implications set out in both UK and EU rules.

(3) The UK will continue to recognise certain EU-issued documents until 31 January 2022 for services in Britain. These are operator licences, safety certificates, and train driving licences.

For Northern Ireland, the UK text says “The 2-year time limit from 31 January 2020 on recognition of these categories of EU-issued documents does not currently apply to Northern Ireland.” Again, this flows from the Ireland/Northern Ireland Protocol of the EU-UK Withdrawal Agreement.

Any future arrangements with France are expected to deal with the Channel Tunnel itself but not with the routes into continental Europe (beyond Calais-Fréthun). UK operators and train drivers will need to obtain additional licences and safety certificates to operate or work in the EU.

(4) The UK’s formal participation in the EU Agency for Railways (ERA) ended on 31 January 2020 and the UK is not seeking membership of ERA. The UK text says “The UK intends to put in place appropriate arrangements for regulatory co-operation with ERA where this is necessary to secure the safety of international rail services.”

(5) After 31 January 2022, operators with an EU operating licence will need to hold an ORR-issued licence to operate in Britain. Establishment in the UK is not necessary, but the UK ORR licence will need to have been applied for and obtained by 31 January 2022 to continue operating after that date.

Operators holding an ORR-issued licence that run domestic services in the EU will need to re-apply for an operator licence in an EU member state, consulting the relevant guidance and following the requirements from the EU or the relevant member state. The licence must be in place by 1 January 2021.

This is also the case for UK-based operators seeking to run new domestic services in an EU member state.

Operators of cross-border services between the UK and the EU holding an ORR-issued licence will need to re-apply for an operator licence in an EU member state. The licence must be in place by 1 January 2021.

(6) ORR-issued Part A and Part B safety certificates will be valid for UK-based domestic operators operating in Britain until their normal expiry.

EU established operators running a domestic-only service in Britain, with a Part A safety certificate issued in the EU before 31 January 2020, will be able to use these certificates until 31 January 2022 or until they expire – whichever is earlier.

Proposed changes to UK regulations will allow EU established operators running a domestic-only service in Britain with a Part A safety certificate issued in the EU before 31 January 2022 to run services in Britain until 31 January 2022. These changes are to be made in the Railways (Miscellaneous Amendments, Revocations and Transitional Provisions) (EU Exit) Regulations 2020. Subject to Parliamentary process, it is expected they will come into force on 31 December 2020.

This will also apply to operators running services with a single safety certificate issued under Directive (EU) 2016/798, which will be deemed equivalent to a UK Part A safety certificate during the period between 31 December 2020 (subject to the changes to regulations coming into force) and 31 January 2022.

If trains are operated in Britain on the basis of an EU-issued safety certificate, the relevant safety certification issued by the ORR is required by 31 January 2022 at the latest. An ORR-issued Part B certificate associated with an EU-issued Part A safety certificate or a Single Safety Certificate will expire alongside the parent certificate. An operator obtaining new safety certification will also be required to apply for and obtain a new Part B safety certificate.

Establishment in the UK is not required to obtain relevant safety certification issued by the ORR, but a UK address must be supplied in the application.

For Northern Ireland – the UK text says – “non-UK based operators running a domestic-only service with a Part A safety certificate issued in the EU are not currently subject to a time-limited recognition period.” Again, this flows from the Ireland/Northern Ireland Protocol of the EU-UK Withdrawal Agreement.

Any EU operator seeking to run domestic services in Britain based on an EU-issued Single Safety Certificate, issued under Directive (EU) 2016/798 until 31 January 2022, will also have to obtain a Part B safety certificate from the ORR before it can do so.

UK-based operators running domestic services in the EU who hold an ORR-issued, or Northern Ireland-issued, Part A safety certificate need to obtain an EU safety certificate by 1 January 2021. This also applies to UK-based operators seeking to run new domestic services in an EU country.

Operators established in the UK who operate cross-border services and hold an ORR-issued Part A safety certificate will need to obtain EU safety certification by 1 January 2021.

(7) Entities in charge of maintenance (ECM) that maintain vehicles in the EU on the basis of an ECM certificate issued in the UK by the ORR or an accredited certification body need to apply for and obtain a new ECM certificate from a certification body in an EU country.

Vehicles used in international traffic between the UK and the EU also have the option of obtaining a certificate according to the legal framework of the Convention concerning International Carriage by Rail (COTIF). The validity of ECM certificates issued in the UK by the ORR or an accredited certification body will be unchanged for freight wagons running purely on the UK mainline railway. ECMs that hold a certificate issued in accordance with COTIF can continue using these certificates in the UK for operations involved in international traffic. ECMs may also rely on certificates issued in the EU in accordance with Commission Regulation 445/2011 to maintain freight wagons for use in domestic operations.

Proposed changes to regulations will allow ECMs to rely on certificates issued in the EU in accordance with the new Commission Implementing Regulation (EU) 2019/779 to maintain freight wagons for use in domestic operations. These changes are included in the Railways (Miscellaneous Amendments, Revocations and Transitional Provisions) (EU Exit) Regulations 2020. Subject to Parliamentary process, it is expected they will come into force on 31 December 2020.

(8) Drivers working on services in Britain, including cross-border services, and using licences and certificates issued in the EU up to the 31 January 2020, are able to drive trains on the basis of those licences until 31 January 2022 or until they expire – whichever is earlier.

Proposed changes to regulations will allow train drivers working on services in Britain, including cross-border services, and using licences and certificates issued in the EU up to the 31 January 2022, to use this documentation until the 31 January 2022. These changes are included in the Railways (Miscellaneous Amendments, Revocations and Transitional Provisions) (EU Exit) Regulations 2020. Subject to Parliamentary process, it is expected they will come into force on 31 December 2020.

From 31 January 2022, train drivers working in Britain will need to have obtained a UK train driving licence from the ORR to continue operating. The validity of train driving certificates is unaffected. However, operators must ensure that certificates held by newly re-licensed drivers (and their registers of those certificates) refer to the correct licence.

This means that, UK train driving licences are required by 31 January 2022.

Train drivers operating international services or driving domestic services in an EU member state on the basis of an ORR-issued train driving licence will need to re-apply for a train driving licence in an EU country. The new licence will need to be in place by 1 January 2021. Train drivers should apply for and obtain this as soon as possible, where they have not already done so.

(9) From 1 January 2021, the placing of interoperability constituents on the UK market will be based on a UK conformity assessment process, requiring compliance with applicable UK National Technical Specification Notices (NTSNs).

For Northern Ireland, the UK text says “Further updates may be provided in relation to Northern Ireland due to a review of obligations under the Northern Ireland Protocol.” This is the Ireland/Northern Ireland Protocol of the EU-UK Withdrawal Agreement.

The UK text says “It is currently expected that an interoperability constituent placed on the EU market up to 31 December 2020 with a certificate of conformity from a UK notified body will be able to be used within the EU for the period of validity of that certificate in subsystems or vehicles authorised before 1 January 2021.”

(10) Vehicles first authorised in the UK from 1 January 2021 will need to be authorised in the EU as well before they can be used in the EU. Vehicle authorisations issued in the EU up to 31 December 2020 will remain valid in the UK if the vehicle is already in use here prior to that date.

From 1 January 2021 vehicles first authorised outside the UK will require an additional authorisation before they are first used in the UK. This system will be operated in accordance with the UK’s COTIF international obligations.

UK-EU Comprehensive Trade Deal (UK Brexit)

Today the UK Government published its policy paper setting out its approach to negotiations for a Comprehensive Free Trade Agreement (CFTA) with its neighbours, the EU27 bloc. The document is here.

Key aspects –

* It is a vision of a relationship based on friendly cooperation between sovereign equals, with both parties respecting one another’s legal autonomy and right to manage their own resources as they see fit. Whatever happens, the Government will not negotiate any arrangement in which the UK does not have control of its own laws and political life. That means that we will not agree to any obligations for our laws to be aligned with the EU’s, or for the EU’s institutions, including the Court of Justice, to have any jurisdiction in the UK.

* The Comprehensive Free Trade Agreement (CFTA) should be – on the lines of the FTAs already agreed by the EU in recent years with Canada and with other friendly countries.

* The CFTA should be supplemented by a range of other international agreements covering, principally, fisheries, law enforcement and judicial cooperation in criminal matters, transport, and energy.

* All these agreements should have their own appropriate and precedented governance arrangements, with no role for the Court of Justice.

The EU27 and the UK confirm a progress review will take place in June (this was in the Withdrawal Agreement). In the event that progress is not made, the EU27 and the UK will revert to No Deal. [The Withdrawal Agreement includes an option to extend the transition period for 1-2 years.]

Please note, the Brexit Notices issued by the EU27 and the UK in 2018 and 2019 set out the arrangements that would have applied in 2019 if the Withdrawal Agreement was not agreed (No Deal). The Withdrawal Agreement having been agreed, connectivity, on for the most part the same basis as before, is provided to the end of the transition period (Dec 2020) – the period we are in at the moment.

The 2018/2019 Brexit Notices now apply to No (EU-UK relations) Deal from 1st January 2021. Some updates, notably to processes, documents and dates, are included (as you will have been noticing as I have been posting on this blog).

Whilst it is envisaged that a basic level of travel connectivity will continue after end Dec, organisations and individuals wherever located should now prepare for the new arrangements, tariffs etc, between the EU27 and the UK, that will apply from 1st January 2021. This Blog does not notify on customs, VAT or tariffs, it is focused on ENV and OHS related regulatory matters.

Please keep following this Blog, as further details of the arrangements that will apply for ENV and OHS related regulatory matters from 1st January 2021, are published.

Please note, we expect to meet the deadline for supply of the necessary new UK Registers & Checklists (in all regional variants) by 1st January 2021.

Subscribers will note that provision is already starting to appear on their existing websites.

GM Food and Animal Feed (UK from 1st Jan 2021)

Instructions (by the Food Standards Agency) are issued today re exports of GM Food and Animal Feed Products to the EU From 1st January 2021 – here.

Please read carefully, below is a summary –

The information applies to UK businesses:

* holding or seeking authorisations for genetically modified (GM) food or feed

* holding or seeking authorisations for animal feed additives

* exporting animal feed products to the EU

* that have applications to update the list of feed for particular nutritional purposes (PARNUTS) pending on 31 December 2020

• that represent companies that are based in non-EU countries which rely on UK representation for EU trade

The business must be established in the EU or European Economic Area (EEA), or have a representative that is established in the EU or EEA for trade to the EU to occur. The EEA includes Iceland, Liechtenstein and Norway.

The role of the representative is to provide assurance that the non-EU establishment complies with EU legislation.

Where EU authorisations are held for GM food or feed, or for animal feed additives, a representative must be established in the EU or EEA. The details of the representative must be sent to the European Commission. This could be a branch of the business which is established in the EU or EEA or another business.

Changes to holder-specific authorisations for GM food or feed, or for feed additives, require amendments to EU legislation which would need to be in place by 31 December 2020. Businesses in the process of such changes must approach the European Commission as soon as possible.

Exporters of feed products to the EU require representation in the EU or EEA. EU countries will each have their own systems for this and businesses should consult with the relevant competent authority in the EU country for further advice on gaining recognition for their representative. The requirement for non-EU country representation would apply to all feed products exported to the EU.

The requirement for non-EU country representation applies to all feed products. This follows the European Commission’s announcement of a revised interpretation of Regulation (EC) 183/2005, Article 24. The FSA is currently seeking clarity on this interpretation, but companies should nevertheless anticipate this revised interpretation and consider designating a representative within the EU or the EEA.

Regulation (EC) No 183/2005 on feed hygiene states that establishments approved by the competent authority shall be recorded in a national list under an individual identifying number. From 1 January 2021, these approval numbers may not be recognised in EU countries.

Please clarify with your third country representative or the competent authority in the individual member state(s) that you wish to export to, to ensure that you are compliant with the rules on third country requirements when exporting to the EU.

Export-Import (Hops) (UK Brexit)

Exit day is 31st January (end of this month)

Transition Period end date is 31st December (end of this year)

Instructions for trading with the EU (hops and hop products, an agricultural product) after Exit day are set out here. Note these set out in No Deal scenario format – I have adjusted below.

I am posting this Blog because it illustrates the UK approach for trade with the EU in those agricultural products, post Brexit, for which the EU has marketing standards.

Pre-Brexit

Hops marketed in the EU must meet rules on marketing standards. This includes hops extracts, hop cones and ground, pellets or powdered hops cones.

To show that they meet these standards, imports to the UK:

• from non-EU (third) countries, must have an Attestation of Equivalence

• from the EU, must have an EU hops certificate

The UK inspection agency is the Rural Payments Agency (RPA) – this agency inspects at least 5% of hops imports from each non-EU country. The UK does not currently inspect imports of hops from the EU.

Hops produced in the UK are issued with EU hops certificates from hops certification centres. With some exceptions, the certificates are needed for:

• marketing hops in the EU (including the UK)

• exporting hops

Post-Brexit

UK certification centres will still issue hops certificates for hops produced in the UK.

UK hops certification centres must remove all EU branding (including references to the EU and the EU emblem) from certificates from Exit day (or from the end of the Transition Period). The form of the certificate and the process for getting a certificate will not change.

Hops imported into the UK (after Exit day or after the end of the Transition Period) must be accompanied by one of the following as evidence that they meet UK marketing standards:

• the new UK Attestation of Equivalence issued by an authorised third country agency

• EU Attestation of Equivalence issued by an authorised third country agency (can be used until 31 October 2021)

• EU certificate for hops imported from the EU (can be used until 31 October 2021) – this must comply with EU rules and can be issued by a body authorised by an EU member state

After 31 October 2021, all hop imports from the EU and other third countries must be accompanied by a new UK Attestation of Equivalence. This must be issued by an authorised third country agency. A list of these agencies will be published on GOV.UK following EU exit. Agencies currently registered with the EU will be registered with the UK when the UK leaves the EU.

The UK may stop accepting EU Attestations of Equivalence and EU certificates before 31 October 2021 if EU marketing standards for hops do not meet UK standards.

The EU only accepts imports of hops accompanied by an EU Attestation of Equivalence, issued by an authorised agency in the exporting third country.

The UK government intends to apply to the EU to list RPA as the UK agency authorised to issue Attestations of Equivalence. RPA will not be able to issue Attestations of Equivalence until the listing with the EU is complete.

Further details will be published when they are available. However, an exporter must first enrol with RPA to export hops after Brexit.

Other details are set out in the instructions.

New Rules from the Trade Deal

The instructions are currently silent on new rules from the Trade Deal.

Brexit Instructions (UK Brexit)

Exit day is 31st January 2020 (at the end of the month)

Happy New Year!

As of today, 2nd January 2020, the entry page to the online UK Brexit instructions (found at the base of any online gov dot uk page) does not –

(1) stipulate the transition period end date (it currently is 31st December 2020), nor

(2) identify new rules that would change the No Deal baseline

As more information comes online and is published, I will issue applicable Blog posts. Please look out for them.

Medical Devices Notified Bodies (UK Brexit)

Exit day is 31st October (this date is in a Statutory Instrument)

Yesterday (8th October) the MHRA updated its instructions on Notified Bodies.

Here

This link updates on notified bodies: UL International (UK) Ltd address, contact details and EC link updated, BSI Healthcare EC link added, SGS named contact updated and LRQA was removed from the list.

The link also has the published guidance on how medical devices will be regulated.

UK Temporary Import Tariff Regime (UK Brexit)

Exit day is 31st October (this date is in a Statutory Instrument)

Today (8th October) the UK republished it’s temporary Import Tariff Regime that will apply in a no-deal Brexit.

Here

[this Blog does not focus on Customs or VAT]

It is mostly unchanged from the March version. Three aspects have changes – affecting HGVs, bioethanol and clothing –

• lower tariffs on HGVs entering the UK market, striking a better balance between the needs of British producers and the SMEs that make up the UK haulage industry, ensuring that crucial fleet replacement programmes that help to lower carbon emissions can continue

• adjusted tariffs on bioethanol to retain support for UK producers, as the supply of this fuel is important to critical national infrastructure

• tariffs applied to additional clothing products to ensure the preferential access to the UK market currently available to developing countries (compared to other countries) is maintained.

Moving Goods from Ireland to Northern Ireland (Northern Ireland Brexit)

Exit day is 31st October (this date is in a Statutory instrument)

[this Blog does not focus on Customs or VAT, this post is made only because the changes are substantive]

Today HMRC updated (in a major way) and reissued its guidance on customs procedures applying in Northern Ireland.

Here

Goods moving between Ireland and Northern Ireland will face different procedures compared to other UK-EU trade.

You will not need to:

• get a customs agent or an Economic Operator Registration and Identification (EORI) number

• pay Customs Duty or make import or export declarations to HMRC

You should also consider advice issued by the Irish government about their requirements for goods moving into or out of Ireland.

This was the case in the March instructions (see Blog post then).

What is added is information about moving controlled and licensed goods, transitional simplified procedures and moving goods under transit.

HMRC also issued updated instructions on excise duty applying to exports to Ireland and imports from Ireland.

Export – here.

Import – here.

Customs and VAT processes in Northern Ireland will also change if there is an orderly exit. I will be issuing further Blog posts.

UKCA Mark (UK Brexit)

Exit day is 31st October (this is the date in a Statutory Instrument)

Please remember the UK is bringing in a new UKCA Mark, applicable after Exit day.

The Feb issued instructions on UKCA Mark are here.

This applies to certified goods sold in the UK.

Please follow the links carefully, as some goods will require the UKCA Mark immediately after Exit day.

Other goods will be able to continue with the CE Mark for a limited period.