update on brexit - cz.kuehne-nagel.com · 11/15/2018 · hard brexit (29.03.19) soft brexit (end...
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Update on Brexit Mark Johnson – KN UK - Director Customs and Trade Control Nov 2018
The Position as of 15 Nov 2018
The UK Prime Minister has secured agreement from the Cabinet for the “Draft” Withdrawal agreement What happens next:-
• UK Prime Minister will present it to Parliament in the House of Commons - 15 Nov 2018
• Then it needs to go to the European Parliament – now 25 Nov 2018 confirmed by Michel Barnier The politic declaration to support the agreement needs to be constructed between now and 25 Nov 18
• Then it is back to the UK parliament for a meaningful vote – Due Dec 2018 –TBC
Statement within the agreement “Until the future relationship becomes applicable, a single customs territory between the Union and the UK shall be established (Single Customs Territory). Accordingly, Northern Ireland is in the same Customs Territory as the GB; the Customs territory of the GB” Any extension to the transition period from Dec 2020, needs to be agreed before 1 July 2020- It will be at a cost! 15
Important Note
The information contained in this guidance is valid only at the time of writing and is only to be regarded as an
opinion offered by Kuehne + Nagel Ltd.
Nothing contained herein is legally binding on Kuehne +
Nagel Ltd. and shall not be considered as such
Current version: Nov 2018
Nothing is agreed until everything is agreed
Soft or Hard Brexit
Brexiteers and Pro-EU
FTA Agreement & WTO Rules
NI Border
From “The” to “A” Customs Union
Single Market
Brexit Terminology
Transition Agreed and Ratified
Article 50 (March 2017)
Negotiators
Customs & International Trade Considerations The UK will exit the EU on 29 March 2019 (Brexit Day)
- The current UK Government has secured the principle of a transition period to 31 December 2020
What are the issues? - The transition will only be in place if an overall withdrawal agreement is signed and ratified - The role of the European Court of Justice and the future of the Irish Border - Backstop Dec 2021 ?
Hard Brexit (29.03.19) Soft Brexit (End of Transition) + All imports and exports to the EU will require full customs
declaration – How, where and when?
+ All Imports from EU become dutiable in the absence of a Trade deal/reversion to WTO rules
+ Goods will be required to be cleared at port of entry and fiscal collection needed
+ The UK is likely to apply same external tariff as the EU
+ AEO will be of use theoretically. No other Trusted Trader mechanism in place/AEO lite!
+ Transit through EU & excise goods: time-consuming procedures; high potential fiscal and double-duty risk.
+ A trade deal would mean no or reduced impact on duties on intra-EU traffic.
+ The UK will likely remain in “some form” of Customs Union
+ An extension to the current EU declaration process maybe an option
+ The desire to retain in the EMCS/Common Community Transit Convention in some form
+ The transition period would most likely not be enough to agree on a comprehensive trade deal
+ CHIEF replacement CDS will be in place
“Nothing is agreed until everything agreed”
Transition Deal – 23 March 2018
The key aspects of the agreement announced in Brussels are:
The transitional period will last from ‘Brexit Day’ on 29 March 2019 to 31 December 2020 [ the hard stop is the next EU Budget period starting January 2021 which they do not want the UK to be part of.]
EU citizens arriving in the UK between these two dates will enjoy the same rights and guarantees as those who arrive before Brexit. The same will apply to UK expats on the continent
The UK will be able to negotiate, sign and ratify its own trade deals during the transition period
The UK will still be party to existing EU trade deals with other countries Northern Ireland will effectively stay in parts of the single market and the customs union in the
absence of other solutions to avoid a hard border with the Republic of Ireland
Kuehne + Nagel: Taking Action
A dedicated Brexit team has been created with representation from across the business.
Their role:
Monitor the progress of the negotiations
Understand what the new arrangements mean for KN & our Customers
Maximise opportunities and reduce business risk
We’re doing this by:
Scenario mapping
Working with industry and Government bodies
Create and deliver a clear communications strategy
KNUK Key Timelines - 2018 U
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KNUK Key Timelines – 2019 - 2020
29
Mar
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B
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Sta
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01
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Less than 2 year Implementation period
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Bac
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7 J
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UK Trade negotiations can commence
31
De
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0
Brexit Relationship Matrix
Pawel Jarza
Policy and Compliance
Advisor
Zoe Ryan
Senior Policy Advisor
Road
Richard Thompson
Senior Policy Advisor
Maritime
Alison Lockyer
Sam Watts
Senior Policy Advisor
Maritime
Kraig McCarthy
Aaron Dunne
Customs EU Exit
Policy Team
Lara Robinson
Principal policy adviser,
EU negotiations
Richard Burnett
CEO
Kevin Richardson
CEO
Duncan Buchanan
Deputy Policy
Director
Robert Windsor
Executive Director
Charlie Elphicke
Dover
Chris Grayling
Secretary for State
Transportation
Mark Johnson
UK Customs and
Trade Control Director
Mark Corby - UK
National Customs &
Trade Control Mgr
Flo Saulnier
Strategic Business
Support
Jim Hedderwick
Rail & Road Director
Christopher Kingshott
Strategic Programmes
Director
Marc Wynne
UK Intermodal
Manager
Phil Hayes
Office Manager -
Dover
Karen Wheeler
Director General
Border coordination
John Keefe
Director of Public Affairs
Jeanette Burton
Head of HR – Food
services
Recruitment
Temp agencies
Santa Fe
Tony Thomas
Border Coordination
Chris Seaton
Head of Public
Affairs
Chaz Walia
Had of business
engagement
James Clarke
Policy Advisor - EU
Exit Roads
James Cooper
Chief Executive
Members of Parliament
Andrea Cranfield
Imp Project Mgr
Frank Dunsmuir
HMRC A/C Mgr
Fujitsu
Software Provider
James Hookham
Deputy Chief
Executive
In Summary
• We are connected, front and centre with the government and industry bodies
• KN Brexit team of 15 senior managers from all business and functional units to ensure all potential aspects of the Brexit negotiations are closely monitored
• Recognition there are only speculations and political intentions
• Technical Notices (23 Aug ‘18 , 13 September ’18 and 12 oct ’18 – Partnership Packs 23 Oct 18)
• What can you do today?
• Full description of goods on your EU commercial invoices
• A Letter of Empowerment
• EORI Registration Number
• Paying For Any Duty & VAT
15
Finally - Study June 2018
• Baker Mc Kenzie – Multi-National law Firm established 1949 – Ranked as the 2nd largest Law Firm in the world
• Commission a survey of 800 Businesses across six major EU27 Markets (FR,DE,ES,NL,SE,IE) • Business with at least GBP 250 Milo or equivalent of T/O, 32% were more than GBP 1 Bilo in T/O
• They asked a number of questions relating to:-
The businesses about the impact of Brexit to date, Business preparedness for the future and sentiment towards the UK
15
• However……..
• Here are some High Lights:-