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.