SMMT Brexit Webinar · Art. 50 (3) TEU – Council must “unanimously decide” to extend. THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 15 BACK TO THE POLLS. ... 100

THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED

Lloyd Mulkerrins, Policy Manager, SMMTSMMT Brexit Webinar


PAGE 2PAGE 2

• During presentations everyone will be muted so that only the presenters will be heard.

• The presentation will be followed by a Q&A session. Please type your question into the side panel.

• If you are experiencing any technical problems please call 020 7344 1673.


PAGE 3

SMMT Brexit Readiness Programme


PAGE 4

SMMT Brexit Readiness Programme


PAGE 5

THE BREXIT DEAL


PAGE 6

A NEW BREXIT DEAL?


PAGE 7

A NEW BREXIT DEAL?


PAGE 8

A NEW BREXIT PROPOSAL

“A fair and reasonable compromise”?

• NI aligned with EU agricultural and industrial products regulation

• NI leaves the EU customs union = checks required on the island of Ireland and in the Irish Sea (for agricultural and industrial products regulation)

• After four years, NI to choose between the two border arrangement or aligning with GB (potential consequence is formalising the return of a hard border on the island of Ireland


PAGE 9

NEW PROPOSALS - REACTION

Reactions

• DUP

• NI Business Community

• EU and Dublin

• ERG

• Labour Frontbench

• Labour Backbench


PAGE 10

WHERE DOES THAT LEAVE US?

Presenter

Presentation Notes

Prime Minister Boris Johnson met with his Irish counterpart Leo Varadkar for over two hours of talks last Thursday Stephen Barclay – Exiting the EU Secretary met with Michel Barnier last Friday for what proved to be constructive talks This set the ball rolling for UK negotiators to meet with Michel Barniers Taskforce 50 team of negotiators last weekend The outstanding challenges are: Legal text UK is pressing for NI to be outside of the EU CU in the backstop Consent mechanism


PAGE 11

EUROPEAN UNION (WITHDRAWAL) (NO. 2) ACT 2019

• Places a duty on government to request an extension until 31st January if, by 19th October:

• No new deal has been agreed; and

• Parliament has not consented to leaving without a deal


PAGE 12

HOW ABOUT THE OPPOSITION PARTIES?• It’s a waiting game….

• Opposition parties seemed certain of General Election once extension secured however…..

• …..views are now splintering on Second Referendum

Presenter

Presentation Notes

What exactly is going to be agreed between the UK and EU and by when? Do we expect to see a deal come back in the next couple of days, vote on leaving with no-deal? For some MPs they would rather see a Second Referendum ahead of any general election rather than after. Official Labour position remains win a general election, negotiate a new deal with the EU and then old a referendum on that vs remain.


PAGE 13

OPERATING ASSUMPTION

1. No new deal will be agreed with the EU.

2. In the unlikely event that a deal is agreed, it will be less ambitious than the current deal and will not be ratified by Parliament.

3. Article 50 extension will be requested, secured and no-deal (on 31 October) averted.

4. Early election this year (poss. 28th November).


PAGE 14

WILL AN EXTENSION BE GRANTED? HOW LONG FOR?

• Request = 31st January 2020

• Alternatives:

• 31 March 2020• 30 June 2020• 31 December 2020

Art. 50 (3) TEU – Council must “unanimously decide” to extend


PAGE 15

BACK TO THE POLLS


PAGE 16

LATEST POLLING

Source: Politico

Presenter

Presentation Notes

Conservatives lead 28% - 38% Labour second 21% - 30% Margin varies significantly Lib Dems third 16% - 23% Brexit Party forth 7% - 17%


PAGE 17

AUTOMOTIVE PRIORITIES

Government must agree the Withdrawal Agreement with the EU as soon as possible, rule out a ‘no-deal’ Brexit and secure the transition

Remain in the customs union to guarantee the free flow of goods across the border.

Secure the benefits of single market, maintain regulatory harmonisation and avoid non-tariff barriers.

Retain the ability to access talent freely and from across the EU.

Securing existing preferential trading arrangements with third country markets.


Customs in a no-deal scenario


PAGE 20


PAGE 20PAGE 20

No-Deal = No UK Membership of the EU Single Market or Customs Union

Duties Friction

Presenter

Presentation Notes

Today businesses can move goods freely between the UK and EU27, freely in terms of no tariffs are paid upon moving these goods around the European Union and no friction in terms of documentation needed to move the goods from say the UK to France or vice versa. In no-deal a movement between the UK and EU27 now becomes and import and export meaning businesses will have to comply with new rules.


PAGE 21


PAGE 21PAGE 21

Customs Declarations

1.

2.

Complete the Customs Declarations yourself

Appoint a customs broker to complete

them on your behalf

Or

Presenter

Presentation Notes

As is the case for trade between the UK and countries outside of the EU customs declarations are required. Therefore customs declarations will now be needed for trade between the UK and EU. In the event of a no-deal Brexit customs declarations will be required to move goods from the UK into the EU and vice versa. These are in addition to existing requirements for non-EU imports and exports. There are two ways to do this: Complete the declarations yourself if you have the necessary expertise and systems in place. If these are not in place already; Use a customs broker to complete the declarations for you. A broker will prepare and submit customs declarations on behalf of your business. To allow a broker to do this on behalf of your business you will need to issue the broker with a letter of representation. Government estimate the volume of declarations will increase from 50 million today, to 250 million in a no-deal scenario


PAGE 22


PAGE 22PAGE 22

Customs Declarations

1. INCOTERMS and Contracts

2. Classification

3. Valuation

4. Origin

Presenter

Presentation Notes

INCOTERMS and Contracts Customs declarations include information on the terms of delivering the goods and who is responsible for each part of the process, these are known as INCOTERMS. These are agreed between the buyer and seller. It is important you are familiar with INCOTERMS and agree the appropriate terms with your buyer and/or seller. With this in mind, companies should consider reviewing their contracts with both their suppliers and/or customers. Classification In order to import your goods to, or export your goods from the UK the correct commodity code needs to go on the customs declaration. Companies may wish to use a customs expert to ensure goods are classified correctly. Valuation In order to import your goods to, or export your goods from the UK they must have a value. There are six methods by which to value your goods. The most commonly used method is the “transaction value”. Origin In order to import your goods to, or export your goods from the UK, the correct origin of the products needs to be stated on the customs declaration. An origin declaration is mandatory and it does not allow a tariff reduction unless origin requirements set by specific trade agreements are met (see Trade chapter - section 4 "Preferential Rules of Origin") In principle, origin is conferred to a specific country if: The product was “wholly obtained” in that country, so if no imports were used in its production, or The product underwent its “last substantial transformation” in that country. The EU has a set of rules to determine where the last substantial transformation took place


PAGE 23


PAGE 23PAGE 23

Transitional Simplified Procedures (TSP)On 4 February HMRC announced the introduction of TSP

Aim: to make importing easier and reduce the upfront administrative burden on EU to UK trade

Time: In place for at least 15 months (will be reviewed 3 months in and not removed without a years notice)

Criteria to register for TSP:

• Established in the UK• Conduct EU to UK trade• Have an EORI number

On 15 October HMRC announced that they have automatically enrolled 95,000 businesses for TSP

Presenter

Presentation Notes

In addition to the 30,000 businesses that have already registered for TSP.


PAGE 24


PAGE 24PAGE 24

It’s Complicated

Government have made £16 million available to help businesses train staff in making customs declarations

Applications close on 31 January 2020

More than 3000 customs brokers have been trained as part of an £8 million investment by government in December 2018

Presenter

Presentation Notes

TSP does not remove the need to make a declaration completely it only delay the need to complete them until 6 May 2020


PAGE 25


PAGE 25PAGE 25

UK Points of Entry/Exit

Addition friction will likely impact on key points of entry/exit in the UK.

Operation Yellowhammer highlighted:

• Up to 85% of lorries using the main Channel crossings may not be ready for French customs

• Could face delays of up to two and a half days• Significant disruption could last up to three months

before the flow of traffic improves to 50-70% of current rate

Presenter

Presentation Notes

100 pop up sites will be on routes to key points of exit. A majority of these will be advice stops, there to highlight the information hauliers will need to have on them should they wish to progress through the UK border. However some of these will provide physical support to traders in completing documentation such as customs declarations. Turn back sites £300 fines for lorries arriving to the border without being prepared Other major automotive ports such as Bristol, Grimsby and Immingham, Southampton and Tyne have


PAGE 26


PAGE 26PAGE 26

UK Points of Entry/Exit O

pera

tion

Broc

k Operation Brock

Presenter

Presentation Notes


PAGE 27


PAGE 27PAGE 27

EU Points of Entry/Exit France• French customs has implemented a Smart border project• Pilots for the experienced traders have gone well• Based on the early completion of Customs procedures

Netherlands• 750 new Dutch customs officials. Import declarations

processed by the Dutch authorities could increase by 18%• 35,000 companies in the Netherlands alone that do

business with the UK and no country outside the EU• 10% of Rotterdam traffic comes to the UK

Belgium• New infrastructure and recruited 900 new customs officials• 1/5 traders may not be ready• Traders could see delays

Presenter

Presentation Notes

Belgium delays seen as less than what UK forecast Like the 100 pop up sites in the UK, 50 pop up sites will be set up across the EU on the way to key points of exit.


PAGE 28


PAGE 28PAGE 28

Presenter

Presentation Notes

A traffic plan has been formulated for each terminal and surrounding area, including measures to minimise any possible inconvenience resulting from trucks. This traffic plan aims to keep local and regional traffic moving. We will be doing this by guiding freight traffic that does not have the necessary paperwork to designated parking sites and preventing queue formation at the terminals.


PAGE 29


PAGE 29PAGE 29

Summary of Actions

What Businesses need to do

VAT numberEORI UK and EUCustoms Declarations and TSPINCOTERMS and Contracts ClassificationValuationOrigin

What government has done

Awareness CampaignAuto-enrolment of EORI numbersAuto-enrolment of TSP UK and EU Pop Up sites Helpline – 0300 3301 331


PAGE 30

Questions and Answers

Please type your question in the Question/Chat box.

Email: [email protected] with your questions after this session.

Slides emailed to participants after this session.

mailto:[email protected]

The Society of Motor Manufacturers and Traders Limited71 Great Peter Street, London SW1P 2BNwww.smmt.co.uk

SMMT, the ‘S’ symbol and the ‘Driving the motor industry’ brandline are registered trademarks of SMMT Ltd.

Thank you

Documents

SMMT Brexit Webinar · Art. 50 (3) TEU – Council must “unanimously decide” to extend. THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 15 BACK TO THE POLLS. ... 100