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Brexit Bulletin - 21 June 2021
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Last week, ADS held its latest Managing Brexit webinar in collaboration with the CAA to discuss the recently agreed Technical Implementation Procedures of the new UK-EU Bilateral Aviation Safety Agreement. Our In Focus section talks through the key points from the webinar and details how members can find more information.
The Taskforce on Innovation, Growth and Regulatory Reform has reported its recommendations to the Prime Minister on how the UK can reshape regulation, examining new opportunities from Brexit.
The European Parliament recently adopted a resolution that argues the UK should not be granted data adequacy and claims the European Commission acted beyond its implementing powers. The current bridging mechanism is due to stop at the end of the month, after which the EU plans to impose transfer restrictions on data moving between the UK and the EU. The CBI and BusinessEurope are calling on the EU to grant data adequacy to the UK given the importance of data adequacy for the EU-UK trading relationship, as well as the economies and citizens of both sides.
Finally, a reminder that the EU Settlement Scheme deadline for registration is 30 June 2021. The scheme is free to apply to and is open to EU, EEA, or Swiss citizens, and their families, who wish to continue living in the UK.
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Our latest webinar saw Neil Williams, Safety Policy Manager - Operations at the CAA give a detailed briefing to members on the new UK-EU Bilateral Aviation Safety Agreement (BASA), including changes to the regulatory environment and the content of the newly agreed Aviation Safety Technical Implementation Procedures (TIP). Our full overview of the UK-EU agreement on aviation safety can be found in the ADS members area.
Neil set out how the CAA and EASA will act as the Certificating Authority (CA) to the UK and the EU Member states respectively. The Validating Authority will then accept the recommendations of the CA; however, the CA will assist when asked in determining any necessary actions.
Neil talked through the recently announced creation of the Certification Oversight Board (COB), which is comprised of representatives from the CAA and EASA. Its mandate includes:
- Developing, adopting, and revising the Technical Implementation Procedures
- Sharing information on major safety concerns
- Resolving technical issues falling within the responsibilities of the competent authorities and affecting the implementation
- Developing effective means of cooperation
- Conducting periodic reviews on the modalities of validation or acceptance of design certificates set out in Articles 10 [Modalities of the validation of design certificates] and 13 [Acceptance].
So far, the COB has only met once to establish its procedures. The COB will be used to resolve issues however most concerns will be addressed at the lowest possible level before being escalated to the COB if necessary.
The webinar gave members the opportunity to ask questions and highlight any issues resulting from the TIP directly with Neil. Issues raised included the current asymmetry between the CAA and EASA when it comes to validation processes, the state of the relationship between the CAA and EASA, whether there was a backlog of work post-transition and the approvals process for hybrid and electric aircraft.
Members were pleased to see that the UK CAA Form 1s for new engines, propellers and parts are now acceptable in China following negotiations. Talks begin with Taiwan next week and it is hoped that close cooperation can bring about similar success.
A recording of the webinar can be found here and a video from the CAA explaining the TIP in more detail is available here. ADS will consult members on these issues in due course, but in the meantime please do not hesitate to get in touch with any initial thoughts you might have.
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As businesses navigate the new relationship between the UK and EU, there may be issues and new experiences facing members, ADS are keen to hear from members via the dedicated brexitreporting@adsgroup.org.uk email address on all your experiences including:
- Ease or challenges related to moving goods from GB to EU from 1 January 2021
- Experiences with Customs Agents
- Experiences with new customs systems
- Ease or challenges related to moving goods in and out of NI from 1 January 2021
- Concerns with regards to regulation or certification of your goods and products
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The Trade and Cooperation Agreement Partnership Council met on 9 June, with the meeting co-chaired by the UK’s Lord Frost and European Commission Vice President, Maroš Šefčovič. The first meeting of the Partnership Council marks a new phase in the UK and EU relationship. The Partnership Council supervises the operation of the TCA, providing strategic direction to the work of the Trade Partnership Committee and 18 Specialised Committees.
The Partnership Council discussed customs and trade facilitation, long-term visa fees, and participation in Union programmes. The UK restated its commitment to cooperating with the EU through the Partnership Council to ensure that all areas of the TCA were implemented.
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The Withdrawal Agreement Joint Committee also met on 9 June, with the same attendees as the Trade and Cooperation Agreement Partnership Council. The Committee discussed progress on Withdrawal Agreement implementation, with particular focus on the Northern Ireland Protocol and citizens’ rights. The UK set out the extensive steps taken to operate the Protocol by the UK Government, the Northern Ireland Executive, and by businesses in Northern Ireland and Great Britain.
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The UK made clear the need for continued engagement to find solutions that ensure the Protocol operates in a way that minimises its impact on the day-to-day lives of communities in Northern Ireland and maintains the integrity of the EU’s Single Market. The UK underlined the urgency of several issues, including the application of tariff rate quotas (TRQs) for goods entering Northern Ireland, including on steel, that put Northern Ireland traders at a unique disadvantage, and the application of the concept of “goods not at risk”. The UK noted it would continue to engage fully in discussions with the EU, with a view to finding substantial solutions to address the difficulties being caused by the Protocol in Northern Ireland.
The Government has published guidance in relation to EU Regulation 2019/1020, which applies in Northern Ireland from 16 July 2021. Article 4 of the EU Regulation on Market Surveillance and Compliance of Products requires that for certain products to be placed on the EU market, there must be an economic operator based in the EU responsible for compliance tasks. For the duration of the Protocol, Article 4 applies to the NI market. The guidance sets out how Article 4 applies to the NI market. There are various ways to meet the requirements of Article 4, and most UK businesses will likely have sufficient arrangements in place. If adjustments are needed, the guidance outlines what to do.
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The UK secured a trade deal with Norway, Iceland and Liechtenstein on 4 June, with the deal marking the first time these three European countries have included dedicated chapters on digital trade and small businesses, making it the most advanced they have done to date. These digital provisions mean when British firms export to Norway and Iceland, they will be able to benefit from commitments that limit paperwork. Electronic documents, contracts and signatures will allow goods to move more easily across borders.
The agreement means British businesses can bid for government contracts in partner countries worth about £200 million a year. It also allows high-skilled professionals to enter Norway, Iceland and Liechtenstein for business purposes, with faster and simpler visa processes and includes professional qualification recognition so professionals will have a clear route to apply to have their qualification recognised to work in the partner countries.
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Australia and the UK last week decided on an agreement in principle for a future FTA, which takes the UK closer to joining the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), of which Australia is a member. The agreement in principle reflects what the UK and Australian negotiating teams jointly decided on 16 June should be included in the agreement once it is finalised. It does not prejudge the outcome of the negotiations or any further proposals for commitments either the UK or Australia may make after this date. The agreement states that both countries commit to establishing mechanisms to remove trade barriers, including tariff and non-tariff barriers, to make it easier for both sides to trade with each other. However, it also includes a general safeguard mechanism, which will provide a safety net for industry if they face serious injury from increased imports as a direct consequence of the FTA.
The Government consultation on business priorities for new trade agreements with Canada and Mexico is still open, with negotiations due to start in September. As part of the Department for International Trade’s (DIT) post-Brexit continuity programme, rollover of EU trade arrangements with both countries was secured in December. The Government is now looking to strike bespoke trade deals with both countries tailored to the UK economy.
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Both the UK and the EU have reached understandings with the U.S. to resolve a long-standing trade dispute relating to large civil aircraft. The framework agreed between the U.S. and the UK ensures that both countries will work to overcome any disagreements in the sector and counter non-market practices. It also provides that they will not impose tariffs related to this dispute for five years. The two sides will establish a Working Group on large civil aircraft, to be led by each side’s respective Minister responsible for trade, which will seek to analyse and overcome any disagreements between the sides, including on any existing support measures.
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The European Commission has published its Work Programmes for 2021/22 for the central, and largest, pillar of its Horizon Europe Programme focused on “Global Challenges and European Industrial Competitiveness”. This pillar of the programme provides funding for the bulk of the collaborative activity with over €50bn of funding to facilitate partnering with the best researchers and innovators in Europe and beyond.
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Prospective UK funding recipients can learn more about Horizon Europe by visiting UKRI’s Horizon Europe information page. Horizon Europe funding is available for a wide variety of research and innovation areas, with further funding also available to all sectors through the European Innovation Council (EIC) which supports the commercialisation of high-risk, high-impact technologies and will be fully implemented as part of Horizon Europe. Businesses can also gain access to cross-border networks, supply chains and talent.
The UK National Contact Points for Horizon Europe, who are European Commission recognised experts, can provide free specialist advice and support to UK applicants. In addition, the UKRI-funded Knowledge Transfer Network (KTN) and Innovate UK EDGE can help with identifying potential partners and collaborators and interested businesses can sign up for newsletters and webinars to hear about future opportunities to apply.
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The UK Government recently updated its guidance on the UK’s participation in EU Space programmes. The UK remains a member of the European Space Agency (ESA) and retains access to the Copernicus Space Component (CSC-4) of the Copernicus programme. This allows UK entities to continue to be able to bid for contracts tendered through ESA for CSC-4, its predecessor the Global Monitoring for Environment and Security (GMES) programme, or under other programmes such as the Earth Observation Envelope Programme 5 (EOEP5) and Future EO-1.
Businesses, academics and researchers with existing contracts relating to these programmes, or who use data and services, may contact the UK Space Agency atinfo@ukspaceagency.gov.uk with any questions or concerns.
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HMRC is providing a range of support to customs and international trade customers. ADS has collated a series of slide packs provided by government as part of our useful resources page on the ADS Brexit hub and gov.uk also has a page dedicated to webinars and videos for organisations that trade with the EU.
The Government has published a comprehensive summary of the UK’s new relationship with the EU, as well as updated its guidance on requirements for working in the EU and EEA following the deal agreed with Norway, Iceland and Liechtenstein.
The SME Brexit Support Fund is open until the 30 June. This fund can grant SMEs up to £2000 to help with training and professional advice on changes to UK-EU trade, including on customs, software, importing and exporting.
The Government has also updated its guidance on the new UK Emissions Trading Scheme, with new information on the implementation of the Cost Containment Mechanism.
Customs & International Trade Helpline – 0300 322 9434
The helpline is the main route in for customers with general customs queries. Capacity has been scaled up following the end of the transition period.
- For GVMS – (details to be published online soon)
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