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Brexit Bulletin - 5 July 2021
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It’s been five years since the Brexit referendum and ADS continues to focus on ensuring our members are as well-equipped as possible to manage issues and operate in this post-transition phase. We are keeping Government regularly updated on your priorities and concerns as they focus on developing the UK’s legislative, regulatory and policy landscape outside the EU.
Last week saw the introduction of the Subsidy Control Bill to Parliament, which is the Government’s proposed replacement framework for the EU State Aid regime. The new UK system will start from the basis that subsidies are permitted if they follow UK-wide principles – delivering good value for the British taxpayer while being awarded in a timely and effective way.
Other key publications last week include:
- The UK Emissions Trading Scheme’s Aviation Allocation Table
- The announcement of a new funding programme that will support UK professional and business services regulators with qualification recognition agreements.
- A joint report from the UK-EU Specialised Committee on Citizens’ Rights, formed as part of the Withdrawal Agreement.
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When the UK left the EU and the transition period ended, so did the UK’s right to transfer personal data between the UK and countries in the European Economic Area (EEA). In addition to this, the EU needed to complete a data adequacy assessment of the UK. That extensive assessment has now been concluded and the EU has approved the UK’s data protection regime to be ‘essentially equivalent’ to the level of data protection in the EU.
As of 28 June 2021, the UK’s high data protection standards are formally recognised by the EU. This means that personal data can continue to flow from the EEA to the UK. The European Commission have formally adopted two decisions:
This decision has been made just in time as the bridging period which covered the UK outside of the EU was due to expire on 30 June. This new agreement supports UK-EU trade and will be a relief to many ADS members and businesses in the UK and EU who will no longer need to put additional measures in place to be able to legally transfer personal data.
However, the adequacy decision currently excludes transfers of data for the purpose of UK immigration control. The European Commission will reassess their position on this once UK law become clearer.
For more information on the impacts of this adequacy agreement, and data adequacy more generally, the techUK website has some usual information. ADS has previously worked with techUK to help members understand the potential impacts of this ruling and how to ensure legal data flows now the UK is outside of the EU. Members can access a recording of our webinar on this topic here.
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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
HGV Driver Shortages - Have you been affected?
ADS is looking to understand whether members are currently being impacted by the shortages of HGV drivers.
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The underlying cause appears to be European drivers returning home due to Brexit and the pandemic, alongside the impact of the pandemic on drivers’ ability to train and take a test.
If this is something that has impacted your business, we would like to hear from you, please get in touch with our Senior Economist, Aimie Stone at aimie.stone@adsgroup.org.uk.
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Singapore
Last week the UK and Singapore announced the launch of negotiations on a new ambitious Digital Economy Agreement (DEA). The agreement would look to remove barriers to digital trade and enable UK exporters to expand into high-tech markets. More information is available on gov.uk.
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
The Department for International Trade has published the UK's strategic approach for negotiations to join CPTPP. The document also outlines the government’s response to the consultation run on CPTPP and the initial economic scoping assessment for CPTPP membership. An accession working group will now be set up with all the countries, which will lead onto negotiations.
Trade Dispute – large civil aircraft
A couple of weeks ago we had the positive news that the UK and the US have reached an agreement to suspend retaliatory tariffs for 5 years as part of the 17-year long dispute between large civil aircraft manufacturers. We welcome the clarity this agreement brings during a difficult period for the sector and our blog provides more information.
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Last week, the high court in Belfast threw out a legal challenge to the Northern Ireland Protocol.
Maros Sefcovic, EU Commission Vice-President, also spoke at a Brussels press conference, stating that he sees a bright future for Northern Ireland businesses, due to its position as part of both the EU single market and customs union and the UK Internal Market.
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Guidance on workforce mobility
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From 1 July 2021, eligible frontier workers entering the UK for work will require a frontier worker permit. This will apply to any worker who is an EU, EEA or Swiss citizen who is employed or self-employed in the UK, but a resident elsewhere. Frontier workers looking to start work from 1 December 2020 onwards need to apply for a visa under the UK points-based immigration system.
The Government have launched a consultation on changes to the operator licensing regime within the UK that need to be made following the signing of the UK-EU TCA.This call for evidence seeks views from those with an interest in the goods vehicle sector.
ADS inquired into the Defence exemption for international travel quarantine restrictions and have been informed by the MOD that the exemption applies in three circumstances and covers Crown servants, government contractors and visiting forces who:
- are required to undertake work necessary to the delivery of essential defence activities; or
- have travelled from the Common Travel Area or an exempt country or territory on a vessel or aircraft of the UK Armed Forces or a visiting force and that vessel or aircraft has not taken on any persons, docked in any port or landed in any non-exempt country or territory; or
- have undertaken a continuous period of at least 14 days aboard a vessel of the UK Armed Forces or a visiting force and that vessel has not taken on any persons or docked in any port outside of the Common Travel Area for a period of at least 14 days immediately preceding its arrival in the United Kingdom.
Additionally, the Government has announced that senior executives in a business may be permitted to temporarily leave quarantine in England if they are undertaking activities which are likely to be of significant economic benefit to the UK. This is in addition to new exemptions for aerospace engineers, non-UK border security officials and regular work abroad.
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Internal Market - OIM establishment
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The UK Internal Market Act requires the Competition and Markets Authority (CMA) to carry out independent advice, monitoring and reporting in support of the effective operation of the UK internal market. The Office for the Internal Market (OIM) has been created by the CMA to take forward this role. Its work is intended to help avoid the creation of trade barriers within the UK that could have harmful economic effects. The OIM must produce an annual report on the ‘health’ of the UK internal market, which will be published for Parliamentary scrutiny, and businesses will be encouraged to bring issues to the attention of the OIM.
Last week, ADS attended a roundtable with the OIM, who are keen to engage with different industries. Going forward, businesses and other organisations may be proactively approached by the OIM for information, as well as being able to submit information through the OIM’s online Gateway.
The CMA are currently running consultations on the OIM’s draft guidance and on its draft Statement of Policy, which businesses are encouraged to submit to before the deadlines on 22 July 2021. BEIS are also running a parallel consultation on the maximum financial penalties that the OIM can impose when a request for information is not complied with, which closes on 11 August 2021.
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Renewed guidance was made available last week on gov.uk to support traders making delayed supplementary declarations through CHIEF.
The new guidance clearly states that businesses must submit a supplementary declaration no later than 175 days after goods have been imported into Great Britain. There is also some helpful information on what businesses need to do before a supplementary declaration is made.
HMRC has also updated the Trade Tariff tool guidance to include information about how to use the Trade Tariff tool to classify goods correctly.
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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.
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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