Customs Transit Procedures (Brexit UK)

The Customs Transit Procedures (EU Exit) Regulations 2018 (SI 1258) are enacted. These will come into force when separately determined by Treasury Regulations (not enacted yet, these separate Treasury regulations will be made under the (Brexit) Taxation (Cross-border) Trade Act 2018. The Regulations are here.

These Regulations make provision for the international movements of goods, with import duty suspended, under the internationally recognised common transit procedure and TIR Carnet system, with provision for such movements within the United Kingdom. They also provide for such movements of goods under arrangements for NATO forces.

When enacted, they will ensure that these customs procedures operate as before once the United Kingdom exits the European Union.

Draft Notices to be made under these Regulations are here.

Detailed following of the new Customs arrangements is beyond the scope of this Blog. HMRC continue to publish guidance and instructions. Please follow HMRC for these.

Food and Feed Technical Notices (Brexit UK)

On 19th October 2018, the Food Standards Agency issued a Brexit Technical Notice on importing high-risk food and animal feed. This notice is not in the central collection, it is here.

On 4th December 2018, the Department of Health & Social Care issued a Brexit Technical Notice on food and feed safety risk assessment and management. This notice is not in the central collection. It is here.

(1) Immediately after EU exit, food safety authorities (the FSA and Food Standards Scotland (FSS)) will be responsible for providing risk management advice and recommendations for food and feed safety to ministers. Health ministers will then take the final decisions (involving other ministers as appropriate) based on the recommendation. This advice will be published.

(2) Responsibility for taking certain technical and routine food safety risk management decisions could be delegated to food safety authorities at a point after EU exit. This would be subject to consultation.

(3) If the UK leaves the EU in March 2019 with no deal in place, it is anticipated the UK would no longer have access to the EU import notification system, TRACES. This means importers to the UK from the rest of the world will no longer be able to use TRACES to notify the UK about those goods. To ensure those importing high-risk food and feed could continue to do so, a new import notification system is being developed to take the place of TRACES. More information on the new system will be published in the autumn.

(4) Anyone currently using the TRACES system to pre-notify the UK about high-risk food and feed product imports from the rest of the world will need to start using the UK’s new import notification system, ahead of March 2019.

Chemicals Regulation (UK Brexit Preparedness)

Very little direct Brexit instruction is published by the UK on Chemicals Regulation, beyond the UK Technical Notices (I already posted about on this Blog). The EU also has its own Brexit Preparedness Notices (I already posted about on this Blog).

Today (7th November) the House of Lords EU European Union Committee published its report of evidence taken on the matter. This report is here,

There is agreement between the Government, industry and NGOs that the UK’s continued participation in REACH, the main system of EU chemical regulation, and continued membership of the European Chemicals Agency would be the best Brexit outcome.

But UK Brexit Preparedness is not advanced.

The Report identifies the following as requiring urgent attention (by Government) :

(1) clarifying its intended approach to chemical regulation in the future;

(2) creating and populating a database of chemicals;

(3) preparing a UK body to take on the role of chemical regulation in a way that is independent, transparent and scientifically robust;

(4) enabling businesses, including small businesses, to take pre-emptive action to maintain valid registrations for the EU market; and

(5) mitigating the economic impact on the chemical industry that would result from leaving the EU system.

NOTE THIS (referring to the evidence taken)

If associate membership of and ongoing participation in ECHA are not negotiated by exit day, a number of challenges arise. The first is the fact that, barring any preventative action, all chemical registrations will become invalid in the UK, and all registrations made solely by UK companies will become invalid in the EU. This would prevent the trade and use of those chemicals.

Peter Smith, Executive Director for Product Stewardship at Cefic, explained that there were 21,000 chemicals registered through REACH, 5,000 of which were registered by UK companies.

However, Ms Bulleid made the point that where one of those 5,000 substances is registered jointly by both a UK-based company and an EU-27-based company, “some people will be able to put it on the [EU] market, but the UK registrants will not”.

Ms Lloyd agreed, stating that chemicals registered by UK companies will not be invalid in the EU “unless the only registrants of that substance are UK companies”.

As a result, UK companies will lose access to the EU market, but the number of chemicals that would be prohibited is unclear.

THE REPORT CONTINUES WITH THE EVIDENCE GIVEN BY MINISTERS ON THEIR STEPS ON THE MATTER OF ILLEGAL REGISTRATIONS – these include :

(1) a new statutory instrument (Brexit Regulation) to continue the validity of UK registrations by UK registered companies for the UK market

(2) a DEFRA Secretary of State observation (based on the EU Brexit Preparedness Notices) that UK companies can mitigate by transferring their registration to an EU based affiliate or representative, but this is acknowledged as not possible in advance of exit day so there would be

a void of weeks or months before such companies are able to export substances to the EU.

Ms Edwards acknowledged this difficulty, stating that “there has been some discussion suggesting that you would need some sort of mechanism in place to enable those registrations to be transferred in advance”, but indicating that no such provision had yet been put in place

ON THE MATTER OF THE UK DATABASE

Ms Peake informed us: “Defra has asked for £5.8 million to set up an IT infrastructure to register chemicals in the UK in the case of having to set up an independent UK chemicals regulation system.”

Ms Edwards stated: “We are trying to build a system that will replicate, as far as it can, what the ECHA system does. Some of the fuller functionality that is not necessarily required on day one will come on board on a slightly slower timescale, but the critical thing for day one is to have that registration function in place.”

PLEASE CONTINUE TO FOLLOW THIS BLOG

Customs, Excise and VAT (UK Brexit)

I have posted already with the UK Technical Notices for Brexit Preparedness. HMRC has three of these Technical Notices. Further instruction is now issued from HMRC in the form of a Partnership Pack. This is here.

For goods exports, the following is required :

(1) register for an EORI number – not open yet [EORI – is UK Economic Operator Registration and Identification Number] and ensure the EU bloc customer also has an EORI number

(2) check is a special licence is required

(3) get the commodity code from published codes

(4) get the correct Customs Procedure Code (CPC)

(5) decide how to declare to HMRC – this is complex – decide if to pay a Freight Forwarder, an Express Courier, or a Customs Agent/Broker

(6) register for the National Export System (NES)

(7) attach the invoice (and licence if needed) with the goods transport

(8) present the goods to customs

(9) finalise the Export entry on HMRC CHIEF system

(10) keep records for 6 years

The Pack is the first of a series of more specific HMRC instructions. This Pack also covers Goods Imports. It does not cover direct sales on a digital platform.

Commercial Driving in the EU – further instruction (UK Brexit)

I posted recently with the UK Department for Transport (DfT) notice about International Road Haulage in the Brexit Preparedness context.

On Monday last (5th November) DfT issued its instruction on the allocation of the very limited number of ECMT permits that will be made available. Note: applications open shortly.

This ECMT permit allocation instruction and what hauliers must do next is here.

For 2019 only 984 annual permits for Euro VI emission vehicles, 2,592 monthly permits for Euro VI emission vehicles, and 240 monthly permits for Euro V or VI emission vehicles will be available. Annual permits will cover all journeys made using the permit between 1 January and 31 December 2019. Monthly permits will be valid for all journeys within 30 days of the start date listed on the permit.

Commercial Driving in the EU (UK Brexit Preparedness)

Today the UK Government published instructions on the actions commercial drivers must take (in the event of No Deal and no bilateral arrangements) in order to drive in the EU27 bloc after Brexit. This information is here.

The contents of any future EU-UK trade deal (or bilateral arrangements) may affect these instructions, so it’s essential to keep watching for updates (the information link in the first paragraph of this Blog post identifies ways to stay updated).

[A] Community licences and ECMT permits

Currently, UK lorry drivers carrying out international journeys must have a standard international operator’s licence along with a community licence for journeys to, from or through the EU and EEA.

Vehicles under 3.5 tonnes (including vans) and drivers operating on own account (carrying their own goods) do not need an international operator’s licence or Driver CPC.

ECMT permits will enable UK operators to drive in the EU and EEA (except Cyprus) if UK issued community licences are not recognised. ECMT permits are also recognised in 15 other countries.

Operators with a Northern Ireland operator’s licence will not be required to obtain an ECMT permit for a journey to the Republic of Ireland. Operators with a Great Britain operator’s licence should apply for an ECMT permit if they plan to drive in the Republic of Ireland from 29 March 2019.

Only limited numbers of ECMT permits will be available. Application will be online for ECMT permits from 26 November to 21 December 2018.

To apply for ECMT permits, a vehicle operator licence online account is required.

[B] Trailer registration (UK Brexit law)

From 28 March 2019, commercial trailers over 750kg and all trailers over 3,500kg must be registered before they can travel through countries that have ratified the 1968 Vienna Convention on Road Traffic.

This includes countries in the EU, EEA and Europe (listed in the Government Information, see link in the first paragraph of this Blog post).

Trailer registration is not required for trailers that are only used in the UK or only used for journeys between the UK and Ireland.

More details are in the Government Information, see link in the first paragraph of this Blog post).

More Technical Notices (UK Brexit Preparedness)

Further Technical Notices are published today. The collection is found here.

I will be shortly adding the Brexit Law list to Cardinal Environment EHS Legislation Registers and Checklists. Please look out for the links appearing in both ENV and OHS. This Brexit Law list will be added to over the coming months.

The UK Technical Notices identify a large number of new systems, new consultations, and new processes that will be brought on stream. Please continue to follow this Blog closely.