Brexit Bulletin - 7 December 2020
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We are still awaiting news on whether or not the UK and EU will reach an agreement. We will keep members informed as the situation develops, to provide certainty where we can on what the environment will look like at the end of the transition period from 1 January 2021.
In the meantime, there are still steps you can take to prepare and as part of our Preparing for Brexit webinar series, our next webinar is on Ensuring Lawful Data flows from 1 January 2021, taking place on 17 December at 14:00. The Department for Culture, Media and Sport (DCMS) and techUK will be taking you through the actions you can take to ensure data flows can continue once the rules change at the end of the transition period. Our Brexit webinars will start up again in the new year and will address what practical measures companies should be taking to aid your adaptation to a new relationship between the UK and EU.
You can always find the latest guidance and previous webinars on our Brexit Hub.
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Since our last Brexit Bulletin, the intensity of the talks between the UK and EU has increased. The Prime Minister Boris Johnson and European Commission President Ursula von der Leyen spoke on the phone over the weekend to try to resolve the main sticking points of the negotiations: fisheries, the level playing field and how an agreement would be enforced. There was no breakthrough but they have agreed for their respective negotiators to reconvene today and they will speak again this evening.
There are several political milestones this week which mean coming to a decision on an agreement soon is important. The final EU Council of the year is on Thursday, which would be when any deal is agreed by the leaders of EU countries and which is seen by Brussels as their ideal deadline. Meanwhile controversial legislation related to Brexit such as the Internal Market Bill and Taxation Bill is being debated in the House of Commons throughout the week, which are designed by the UK Government as safety nets in case of no deal being agreed but which contravene aspects of the 2019 Withdrawal Agreement. If they become law with the controversial clauses still intact, it makes reaching a deal more difficult. The negotiators are therefore aiming to have an outcome within the coming days.
ADS will keep members abreast of any major developments and what they mean for our sectors.
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Confirmation of Tariff Information
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The Department for International Trade has updated the UK Tariff information which will come into force at the end of the transition period on 1 January. The new information confirms the existing commodity code system will continue to apply from 1 January 2021 onwards and provides detail on the ten-digit level commodity codes. This is applicable to GB and NI movements – further information is available on gov.uk. The CHIEF tariff file will be made available from 14 December and will allow existing users of the file to update their tariff systems.
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One of the many areas in which there will be change for businesses come the 1st January is the way goods can be moved between the UK and the EU.
We have previously looked at the Border Operating Model which details new processes required by businesses. This week we are focusing on what this means for those responsible for actually transporting the goods, logistics and freight companies.
Some of the changes that the logistics sector is facing depends upon the UK securing Free Trade Agreements, but there will be changes to current requirements from 1 January.
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Hauliers and logistics companies will be facing the brunt of new requirements on day one, ensuring the documentation is correct in order to be able to physically allow goods to move in and out of the UK.
The Government recently launched a new Haulier’s Handbook. This is described as a ‘one-stop-shop’ to provide key information and advice.The Department of Transport has opened advice sites at motorway service stations and there is the Check an HGV service.
Logistics companies will have been working towards preparing for the end of the transition period, but it is useful for members to know what information they can give to their logistics provider in order to make the transition to new procedures as seamless as it can realistically be. As well as using the tools provided by Government and the ADS Brexit Hub, we recommend engaging with your third-party providers.
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The ADS Risk Register for the UK-EU negotiations has been online for members to access since September and is updated at least weekly.
Outlined below are the key areas in the Risk Register and what has changed since September.
Aviation Safety
Nothing has changed in relation to the UK-EU agreement on aviation safety. Many of the issues highlighted are subject to negotiations. However, the CAA is finalising the technical details of the UK’s arrangements with non-EU countries and will upload this to its website.
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Customs, Tariffs and Borders
This is where there has been the most change. The Government has published guidance on:
Chemicals
We now know the requirements for businesses exporting chemicals from Northern Ireland to Great Britain.
Other issues
No progress has been made on defence, security, data, R&D or space programmes. The ADS Risk Register provides a full summary of the state of play in all of the areas set out above.
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Thursday 17 December | 14:00
From 1 January 2021, the legal basis under which personal data can flow between the UK and EU will fundamentally change.
Neil Ross, Policy Manager, Digital Economy at techUK will set the context of the change, and our current understanding of the progress of the EU’s ‘data adequacy decision’ on the UK.
Ben Nash from the Department for Digital, Culture, Media and Sport will then take us through the actions you can take to ensure you are able to ensure data flows lawfully between you and your customers and/or suppliers from 1 January 2021.
BOOK YOUR PLACE
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Another chance to listen:
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Mark Johnson, National Customs and Trade Control Director from Kuehne + Nagel, a global transport and logistics company, took members through what they need to do for goods moving from the EU to the UK, and from the UK to the EU. The recording is accessible in our Members area.
LISTEN TO RECORDING
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External Brexit webinars:
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Webinars on preparing for Brexit are taking place throughout December, organised by the Government, industry and official agencies. The table below summarises what ADS members can access.
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